Upheld: irresponsible lending complaint against Creation Consumer Finance Limited
Financial Ombudsman decision DRN-6406737 of 2026-06-04T00:00:00+00:00. irresponsible lending complaint against Creation Consumer Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6406737 |
|---|---|
| Decision date | 2026-06-04T00:00:00+00:00 |
| Firm | Creation Consumer Finance Limited |
| Product | Other regulated product |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | Creation Consumer Finance must: (1) arrange an affordable and suitable payment plan with Miss C for the total outstanding amount under all 32 credit agreements; (2) remove all adverse information about those credit agreements from her credit file once she has repaid the outstanding amount. |
Summary
Miss C complained that Creation Consumer Finance lent to her irresponsibly across 32 credit agreements. The firm upheld her complaint and removed all interest and charges but required repayment of outstanding balances. The ombudsman upheld the complaint, finding the firm should not have provided the credit and should not have charged interest or fees. However, as Miss C received the goods and services purchased, she must repay the outstanding capital through an affordable payment plan, with adverse credit file information removed upon full repayment.
The Ombudsman's reasoning
The ombudsman found that Creation Consumer Finance should not have provided the credit to Miss C and that charging interest or fees was unfair. However, as Miss C received the benefit of the goods and services purchased, it is fair and reasonable that she repay the outstanding capital amount. The ombudsman was not persuaded to require write-off of the credit or any action beyond what the investigator recommended and the firm agreed to.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Creation Consumer Finance Limited, all decisions | 60 | 17% |
| Other regulated product, all decisions | 52,408 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website