Upheld: Irresponsible lending complaint against Inclusive Finance Limited trading as Creditspring
Financial Ombudsman decision DRN-6415770 of 2026-06-16T00:00:00+00:00. Irresponsible lending complaint against Inclusive Finance Limited trading as Creditspring. Outcome: Upheld.
Decision detail
| Reference | DRN-6415770 |
|---|---|
| Decision date | 2026-06-16T00:00:00+00:00 |
| Firm | Inclusive Finance Limited trading as Creditspring |
| Product | Personal loan |
| Claim type | Irresponsible lending |
| Outcome | Upheld |
| Remedy | Creditspring must: (1) waive all membership fees under the credit agreement; (2) if Loan 3 is repaid, refund any overpayments with simple interest at Bank of England base rate plus 1% per annum from date of loss to settlement; (3) remove all adverse information about the account from Miss M's credit file; (4) if capital balance remains outstanding, arrange an affordable payment plan and remove adverse information once cleared. |
Summary
Miss M complained that Creditspring lent to her irresponsibly by approving three loans she could not afford. The ombudsman focused on Loan 3 (£1,200 approved July 2025) and found that while Creditspring properly verified Miss M's income at approximately £2,400 monthly, it failed to conduct proportionate checks given her known financial distress. At the time of Loan 3, Miss M was in a payment arrangement for Loan 2, had arrears and payment arrangements on external accounts, and was over her credit card limits. The ombudsman upheld the complaint, finding Creditspring should not have lent to Miss M. The remedy requires waiving membership fees, removing adverse credit file information, refunding any overpayments with interest, and arranging an affordable payment plan if any balance remains.
The Ombudsman's reasoning
Creditspring's income verification was proportionate, but the firm failed to conduct adequate checks given the context of Miss M's financial situation. The firm knew Miss M was already struggling with existing debts through payment arrangements and arrears. Proportionate checks would have revealed that Miss M was unlikely to sustainably repay Loan 3. The firm should have realised lending was unfair given the totality of Miss M's circumstances.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Inclusive Finance Limited trading as Creditspring, all decisions | 13 | 35% |
| 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