Upheld: irresponsible lending - unsustainable lending decision complaint against The One Stop Money Shop Limited
Financial Ombudsman decision DRN-6403071 of 2026-06-03T00:00:00+00:00. irresponsible lending - unsustainable lending decision complaint against The One Stop Money Shop Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6403071 |
|---|---|
| Decision date | 2026-06-03T00:00:00+00:00 |
| Firm | The One Stop Money Shop Limited |
| Product | loan |
| Claim type | irresponsible lending - unsustainable lending decision |
| Outcome | Upheld |
| Remedy | TOSMS must: (1) Calculate total repayments made by Miss S and deduct from total amount borrowed; (2) If Miss S overpaid, refund overpayments plus 8% simple interest from date of overpayment; (3) Remove all adverse information regarding the account from Miss S's credit file; (4) If capital balance remains, arrange an affordable and suitable payment plan with Miss S, and remove adverse information once cleared. |
Summary
Miss S complained that TOSMS lent her £700 irresponsibly in March 2025 without conducting adequate affordability checks. TOSMS verified her income at £2,146 monthly (lower than declared) and calculated £145.17 disposable income after the new loan repayment, concluding the loan was affordable. However, the ombudsman found that while the checks were proportionate, TOSMS failed to fairly consider the information obtained: Miss S had £36,451 existing debt, was overlimit on two credit cards, had recently missed payments, had 13 active accounts, and her disposable income fluctuated significantly month to month (sometimes to just £30). The ombudsman upheld the complaint, finding the lending was not sustainable, and ordered TOSMS to refund interest and charges, remove adverse credit file information, and arrange an affordable repayment plan for any remaining capital.
The Ombudsman's reasoning
While TOSMS carried out proportionate checks as required by regulations, the ombudsman found that the firm failed to fairly consider the information obtained from those checks. Although the calculated disposable income of £145.17 after loan repayments appeared affordable on paper, the ombudsman considered the broader circumstances: the modest disposable income left little room for error, it fluctuated significantly month to month (sometimes to just £30), Miss S had recently missed payments, was overlimit on two credit cards, was heavily indebted with 13 active accounts, and showed signs of financial strain in her bank statements. The ombudsman concluded that sustainable repayment without causing financial difficulties could not be fairly assumed, particularly given Miss S's subsequent immediate financial difficulties and need for a payment arrangement within weeks of borrowing.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| The One Stop Money Shop Limited, all decisions | 21 | 21% |
Source
Read the original decision on the Financial Ombudsman Service website