Not upheld: irresponsible lending complaint against Zopa Bank Limited

Decision detail

Summary

Miss B complained that Zopa Bank Limited lent to her irresponsibly by providing two loans (£2,000 in August 2025 and £1,000 in November 2025). The ombudsman found that Zopa Bank conducted reasonable and proportionate affordability checks for both loans, verifying Miss B's income of £59,000 and £64,000 respectively through credit reference agency data and bank statements. Although Miss B had high levels of unsecured debt with monthly repayments around £2,000-£2,246, her credit file showed no missed payments, defaults, or county court judgements, and her remaining income after housing and credit costs was sufficient to cover the new loan repayments. The ombudsman concluded that Zopa Bank did not lend irresponsibly and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Zopa Bank's affordability checks were reasonable and proportionate for both loans. Although Miss B had high levels of unsecured debt and was a repeat borrower, her credit file showed no signs of financial difficulty, with all accounts up to date and no missed payments. The ombudsman calculated that after deducting housing and existing credit costs from verified income, Miss B had sufficient remaining funds to sustainably afford the new loan repayments. The repeat borrowing pattern, while noted as a potential sign of financial strain, was not concerning given Miss B's demonstrated ability to manage her existing commitments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website