Upheld: Irresponsible lending complaint against The One Stop Money Shop Limited
Financial Ombudsman decision DRN-6465749 of 2026-07-01T00:00:00+00:00. Irresponsible lending complaint against The One Stop Money Shop Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6465749 |
|---|---|
| Decision date | 2026-07-01T00:00:00+00:00 |
| Firm | The One Stop Money Shop Limited |
| Product | Personal loan |
| Claim type | Irresponsible lending |
| Outcome | Upheld |
| Remedy | OSMS must refund all interest, fees and charges applied to the loan. If Mr B paid more than received, overpayments should be refunded with 8% simple interest from date of overpayment. If capital balance remains outstanding, OSMS must arrange an affordable and suitable payment plan with Mr B. |
Summary
Mr B complained that OSMS lent irresponsibly when approving his loan application. OSMS based its affordability assessment on a single payslip including overtime without verifying Mr B's circumstances further, despite his existing debts and three other unsecured loans taken out in the preceding three months. The ombudsman reviewed Mr B's bank statements and found his outgoings exceeded his income and he was already borrowing at an unsustainable rate. The complaint was upheld and OSMS was directed to refund all interest, fees and charges, with any remaining capital balance to be covered by an affordable payment plan.
The Ombudsman's reasoning
The ombudsman concluded that OSMS failed to complete proportionate checks before approving the loan. Reliance on a single payslip including overtime, combined with knowledge of existing debts and recent multiple loan applications, should have prompted OSMS to verify circumstances in greater detail through bank statement review. Bank statements revealed Mr B's outgoings exceeded income and he was already borrowing unsustainably, making the new loan unaffordable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| The One Stop Money Shop Limited, all decisions | 23 | 28% |
| Irresponsible lending, all decisions | 30,770 | 37% |
| Personal loan, all decisions | 22,885 | 29% |
Source
Read the original decision on the Financial Ombudsman Service website