Not upheld: irresponsible lending complaint against Zopa Bank Limited

Decision detail

Summary

Mr H complained that Zopa Bank irresponsibly provided him with a £6,000 loan in September 2023 and a £5,000 loan in March 2025. The ombudsman found that Zopa Bank conducted reasonable and proportionate affordability checks for both loans, with bank statements showing £170.41 monthly disposable income for the first loan and an affordability assessment showing £554.72 monthly disposable income for the second loan. Both loans were for debt consolidation, which would have reduced existing credit payments and improved affordability. The ombudsman rejected Mr H's own income and expenditure analysis and found no evidence that Mr H would be unable to sustainably repay the loans. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Zopa Bank's checks were reasonable and proportionate for both loans. For the September 2023 loan, bank statements showed sustainable affordability with £170.41 monthly disposable income, and as a debt consolidation loan, existing credit payments would have reduced. For the March 2025 loan, the verified income of £65,000 and affordability assessment showing £554.72 monthly disposable income supported the lending decision. The ombudsman rejected Mr H's own income and expenditure analysis, preferring the information Zopa Bank had obtained through reasonable checks. There was nothing to suggest Mr H would be unable to sustainably repay the loans.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website