Not upheld: irresponsible lending complaint against Zopa Bank Limited

Decision detail

Summary

Mr K complained that Zopa Bank Limited irresponsibly lent to him when approving a £1,200 credit card in November 2024. Mr K argued that Zopa failed to account for two personal loan repayments totalling £517.26 monthly, accepted unverified £0 housing costs, and did not request bank statements despite his existing unsecured debt of £29,110 and previous upheld irresponsible lending complaints. The ombudsman found that Zopa's affordability assessment was proportionate given Mr K's clean credit file, no recent adverse information, apparent debt management, and the modest credit limit relative to his income. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman assessed whether Zopa's checks were proportionate to the type and amount of credit (£1,200 credit limit). Given that Mr K had no adverse credit history, no recent arrears, appeared to be managing existing debt well, and had not taken out new credit recently, requesting further verification such as bank statements or P60s would not have been proportionate. The affordability assessment showed Mr K could afford sustainable repayments despite existing unsecured debt. The £0 housing costs declaration was not contradictory given Mr K's stated 'other living arrangement' and CRA confirmation of another person at the address. Each lending decision must be judged on its own merits, regardless of previous upheld complaints.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website