Not upheld: Account closure without notice complaint against Zopa Bank Limited

Decision detail

Summary

Mr D complained that Zopa Bank Limited unfairly blocked his account on 1 January 2026 due to suspected fraud, preventing him from accessing funds to buy groceries. The block was applied by a system-generated fraud prevention tool and remained in place for two days until Zopa could verify the transactions with Mr D on 3 January 2026. The ombudsman found that Zopa acted fairly in applying the block as a legitimate fraud prevention measure and removed it promptly once it could speak with Mr D, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that system-generated fraud prevention tools are legitimate protective measures that may trigger on genuine transactions. Zopa acted in good faith by removing the block promptly once it could speak with Mr D and verify the transactions. While acknowledging Mr D's frustration and the impact of the two-day delay, the ombudsman noted that the FOS cannot require businesses to change their processes or systems, as that is the FCA's role.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website