Not upheld: default registration and account termination complaint against Zopa Bank Limited

Decision detail

Summary

Mr S complained about Zopa Bank Limited's decision to terminate his hire purchase agreement and register a default after he missed payments in May, June and July 2025. Mr S claimed his bank account had been compromised and that Zopa should have taken this into account, and also expressed confusion about the product type. The ombudsman found that Zopa followed fair and reasonable procedures in line with regulatory guidance, issued proper notices, and allowed time for arrears to be remedied. Since Mr S did not inform Zopa of the bank account compromise before the default deadline and failed to make alternative payment arrangements, the ombudsman did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Zopa followed fair and reasonable procedures in line with ICO guidance and the Consumer Credit Act 1974. Although Mr S's bank account compromise was sympathetic, he was not given the opportunity to inform Zopa of this before the default deadline, and even if he had, this would not remove his contractual obligation to make payments or engage with Zopa to arrange alternatives. The ombudsman concluded that Zopa was entitled to register the default as arrears were not cleared within the allowed timeframe.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website