Not upheld: Irresponsible lending complaint against Admiral Financial Services Limited
Financial Ombudsman decision DRN-6380023 of 2026-06-29T00:00:00+00:00. Irresponsible lending complaint against Admiral Financial Services Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6380023 |
|---|---|
| Decision date | 2026-06-29T00:00:00+00:00 |
| Firm | Admiral Financial Services Limited |
| Product | Personal loan |
| Claim type | Irresponsible lending |
| Outcome | Not upheld |
| Remedy | None ordered. The ombudsman noted that Miss H may wish to engage with Admiral about potential accommodations and stated that firms should generally show forbearance towards borrowers in financial difficulty, but declined to make specific recommendations beyond the scope of the complaint. |
Summary
Miss H complained that Admiral Financial Services Limited was unfairly holding her liable for a £30,000 loan taken out in March 2025 as part of an investment scam. A scammer had convinced her to apply for the loan, claiming it was for investment purposes, and she signed the agreement despite being deceived about how the funds would be used. The ombudsman found that although Miss H fell victim to a cruel scam that exploited her vulnerability, she had signed the loan agreement and received the funds into her own account, making her contractually liable. Admiral had conducted reasonable affordability checks and had no reason to suspect fraud at the time of lending. The complaint was not upheld, though the ombudsman noted Admiral should consider showing forbearance given Miss H's financial difficulties.
The Ombudsman's reasoning
The ombudsman found that although Miss H was deceived about the loan's purpose and use, she signed the loan agreement and received the funds into her own account, making her contractually liable. Admiral conducted reasonable affordability checks based on the information available and had no reason to suspect fraud. While acknowledging Miss H's vulnerability and that she fell victim to a scam, the ombudsman concluded Admiral acted in good faith and did not lend irresponsibly, and therefore it was fair for Admiral to seek repayment according to the contractual terms.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Admiral Financial Services Limited, all decisions | 76 | 19% |
| Irresponsible lending, all decisions | 30,675 | 37% |
| Personal loan, all decisions | 23,643 | 29% |
Source
Read the original decision on the Financial Ombudsman Service website