Not upheld: unauthorized lending / lack of consent / controlling relationship complaint against PayPal UK Ltd

Decision detail

Summary

Ms R complained that PayPal approved a £12,500 Working Capital loan in her name without her consent, claiming her ex-partner A was responsible due to their controlling and coercive relationship. Ms R stated she was pressured into allowing A to use her personal details to open the account. However, the ombudsman found that Ms R's own testimony indicated she was aware A was applying for the loan, even if she felt unable to intervene due to the abusive relationship. PayPal had no knowledge of the coercion and, based on the information before it, Ms R appeared to be legitimately applying for the loan. The complaint was not upheld and PayPal was not required to take any action.

The Ombudsman's reasoning

The ombudsman found that while Ms R describes controlling and coercive behaviour, the fundamental issue is what PayPal knew at the time. Ms R's own testimony indicates she was aware A was applying for the loan in her name, even if she felt pressured. PayPal had no visibility of the abusive relationship and, based on the information before it, Ms R appeared to be legitimately applying for the loan. Therefore, it is fair and reasonable for PayPal to hold Ms R liable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website