Not upheld: credit file reporting accuracy and payment arrangement dispute complaint against Zopa Bank Limited

Decision detail

Summary

Mr G complained that Zopa Bank Limited incorrectly reported missed payments on his credit file following a payment arrangement dispute. Mr G believed he had agreed to pay £75 per month towards arrears in addition to his contractual £707.10 monthly repayment, but Zopa maintained the £75 was to replace the contractual payment for three months. The ombudsman reviewed system notes and correspondence, finding that Zopa's 14 May 2025 email clearly stated the £75 would replace the contractual repayment and that arrears would accrue. The ombudsman concluded that Mr G should have noticed the significant monthly payment was not being collected and could have made manual payments if he disagreed. Finding no error by Zopa in reporting the arrears, the ombudsman did not uphold the complaint and declined to order removal of the credit file entries.

The Ombudsman's reasoning

The ombudsman found that Zopa clearly communicated in writing that the £75 payment would replace, not supplement, the contractual monthly repayment. The ombudsman reasoned that Mr G should have noticed that the significant £707.10 monthly payment was not being collected from his bank account, indicating he was aware of the arrangement. The ombudsman found no evidence that Zopa cancelled the direct debit and noted that Mr G could have made manual payments if he wished to pay the contractual amount. Since no error was made by Zopa in reporting the arrears, the credit file entries were accurate and could not be removed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website