Not upheld: Investment mis-selling complaint against Zopa Limited

Decision detail

Summary

Ms B invested in Zopa's P2P lending platform and also opened a three-year fixed term savings account in October 2021. In December 2021, Zopa announced closure of its P2P platform due to regulatory changes and commercial viability concerns, proposing to buy Ms B's loan portfolio at face value. Ms B complained that she had been treated unfairly, lost out on future interest payments and reinvestment opportunities, and was induced into the savings product based on Zopa's business model which she believed Zopa intended to abandon. The ombudsman found that Zopa's Investor Principles permitted the closure and sale at face value, that future interest was never guaranteed, and that Ms B suffered no financial loss as her capital was returned with guaranteed elimination of default risk. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Zopa's Investor Principles explicitly permitted the firm to close the platform and sell outstanding loans at face value in circumstances where regulatory or commercial viability concerns arose. While Ms B was disappointed at losing future interest payments, the ombudsman reasoned that future interest was never guaranteed as borrowers could repay early or default. By acquiring loans at face value, Ms B received guaranteed return of capital including on loans with payment problems, which was beneficial as it eliminated default risk. The ombudsman found no unfair treatment and no financial loss to Ms B.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website