Upheld: irresponsible lending complaint against East End Fair Finance Limited trading as Fair Finance
Financial Ombudsman decision DRN-6382321 of 2026-06-05T00:00:00+00:00. irresponsible lending complaint against East End Fair Finance Limited trading as Fair Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6382321 |
|---|---|
| Decision date | 2026-06-05T00:00:00+00:00 |
| Firm | East End Fair Finance Limited trading as Fair Finance |
| Product | Personal loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | Fair Finance must: (a) calculate total repayments made by Mr T and deduct from the total amount received; (b) refund any overpayments with time-weighted Bank of England base rate plus 1% simple interest per year from date of overpayment; (c) remove all adverse information regarding the account from Mr T's credit file; (d) if capital balance remains, arrange an affordable payment plan and remove adverse information once cleared. If debt has been sold, Fair Finance must buy it back or ensure the third party carries out the redress. |
Summary
Mr T complained that Fair Finance irresponsibly lent him £430 in January 2026 when he was in financial difficulty with 16 missed payments, recent payment arrangements, active arrears, and significant gambling activity. Fair Finance conducted proportionate checks including Open Banking analysis and credit reference agency review, finding sufficient disposable income of £266 monthly. However, the ombudsman upheld the complaint, finding that while the checks were proportionate, Fair Finance failed to fairly consider the cumulative indicators of financial vulnerability and unsustainable repayment capacity. The ombudsman ordered Fair Finance to refund interest and charges, remove adverse credit file information, and arrange an affordable payment plan for any remaining capital.
The Ombudsman's reasoning
While Fair Finance conducted proportionate checks, the ombudsman found they failed to properly consider the information obtained from those checks. The cumulative factors—recent payment arrangements, active arrears, newly opened accounts, high credit utilisation, gambling activity with outgoings exceeding incomings, and a recent history of failing to meet repayment commitments—collectively demonstrated Mr T was unlikely to sustainably repay the loan without financial difficulties. Having sufficient disposable income alone does not automatically mean sustainable repayment is possible when other indicators suggest financial vulnerability and instability.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| East End Fair Finance Limited trading as Fair Finance, all decisions | 5 | 60% |
| Personal loan, all decisions | 22,070 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website