Not upheld: scam-related lending liability and loan write-off request complaint against Zopa Bank Limited

Decision detail

Summary

Mrs D complained that Zopa Bank Limited unfairly held her liable for an £11,000 loan she applied for in October 2024 after being targeted by an employment scam. The scammer persuaded her to take out loans which were transferred to scammers via Bank H. Mrs D requested Zopa write off the loan and argued that Zopa should have identified multiple loan applications in a short timeframe through her credit file. The Ombudsman found that Mrs D knowingly applied for the loan with her own details, the funds were deposited into her account, and she authorised the transfers to scammers. Although she lost the funds to the scam, she had use of them and consented to the loan. The complaint was not upheld.

The Ombudsman's reasoning

Although Mrs D was the victim of a scam, she knowingly applied for the loan with her own details and consented to it. The funds were deposited into her account and she authorised the subsequent transfers to scammers. While she did not benefit from the loan in the intended way, she had use of the funds as she believed she was using them for a legitimate investment. Zopa could not have identified the pattern of multiple loans as credit file updates take several weeks. Therefore, Zopa's decision to hold her liable for the loan was fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website