Not upheld: Irresponsible lending complaint against Zopa Bank Limited

Decision detail

Summary

Mrs S complained that Zopa Bank lent her £10,000 irresponsibly, after she was scammed into using the funds for a fraudulent cryptocurrency investment scheme. She requested the loan be written off and compensation paid. Zopa maintained she was liable as she applied for the loan herself and confirmed it would be used for home improvements. The ombudsman found the complaint not upheld, determining that Mrs S accepted responsibility for the application and that Zopa's affordability checks were proportionate and reasonable based on verified income of £37,000 and calculated disposable income sufficient to cover monthly repayments of £253.93.

The Ombudsman's reasoning

The ombudsman found that Mrs S accepted she applied for the loan herself and used the funds for what she believed was a genuine investment, making her liable for the loan. The affordability checks were proportionate given the loan size of £10,000, monthly repayments of £253.93, and the 48-month term. Zopa reasonably verified income through Equifax and calculated disposable income based on stated expenditure and credit file information. The fact that other borrowing may not have appeared on the credit file within the four-week reporting lag was not a failing by Zopa.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website