Not upheld: irresponsible lending complaint against Zopa Bank Limited

Decision detail

Summary

Mr T complained that Zopa Bank Limited irresponsibly provided him with a £650 credit card in 2025. Zopa had verified Mr T's annual salary of £150,000 through a credit reference agency and calculated that despite existing unsecured debts of approximately £102,000 and monthly debt repayments of around £4,500, Mr T would have sufficient disposable income to afford the credit card. The ombudsman found that Zopa's pre-lending checks were reasonable and proportionate, used verified figures where available, and reasonably estimated other costs, leaving a healthy balance for contingencies. The ombudsman rejected Mr T's arguments that the assessment overemphasized income and underestimated the significance of existing debt, and concluded that Zopa did not lend irresponsibly.

The Ombudsman's reasoning

The ombudsman found that Zopa's pre-lending checks were reasonable and proportionate given the modest £650 credit limit. Zopa used verified figures where available and reasonably calculated figures where they were not. The ombudsman completed an independent affordability assessment and was satisfied that Zopa took a fair approach. Based on the information gathered, there was nothing to suggest Mr T would be unable to sustainably repay the credit. The ombudsman rejected Mr T's arguments that too much focus was placed on income rather than existing debt, that absence of defaults does not mean affordability, and that statistical estimates of living costs were unreasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website