Not upheld: irresponsible lending complaint against Zopa Bank Limited

Decision detail

Summary

Miss P complained that Zopa Bank Limited irresponsibly lent her £20,000 in July 2025. Miss P had declared an income of £80,000 per year and stated she owned her home with no mortgage, though credit checks revealed she had a £1,484 monthly mortgage payment along with other existing credit commitments. Zopa verified her income using an online tool and calculated she had sufficient disposable income to afford the £520.43 monthly repayments. The ombudsman found Zopa's checks were reasonable and proportionate, and that there was nothing to suggest Miss P could not sustainably repay the loan, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Zopa's pre-lending checks were reasonable and proportionate based on the information Miss P provided and what Zopa discovered about her financial situation. The ombudsman noted there is no obligation for lenders to verify income using payslips or bank statements, and even if Zopa had requested such documentation, Miss P's income would have been verified as accurate. Based on the information gathered, there was nothing to suggest Miss P was likely to be unable to sustainably repay the loan. The ombudsman also considered whether the relationship was unfair under Section 140A of the Consumer Credit Act 1974 but found no evidence of irresponsible lending or unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website