Not upheld: Mortgage administration / arrears handling complaint against Zopa Bank Limited
Financial Ombudsman decision DRN-6299155 of 2026-06-26T00:00:00+00:00. Mortgage administration / arrears handling complaint against Zopa Bank Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6299155 |
|---|---|
| Decision date | 2026-06-26T00:00:00+00:00 |
| Firm | Zopa Bank Limited |
| Product | Personal loan |
| Claim type | Mortgage administration / arrears handling |
| Outcome | Not upheld |
| Remedy | Zopa Bank Limited should pay Mr L £75 for distress and inconvenience caused by delayed response (if not already paid). The ombudsman suggested Mr L consider registering a 'notice of correction' with Credit Reference Agencies to explain his personal circumstances during the temporary financial hardship. |
Summary
Mr L complained that Zopa Bank Limited refused to offer temporary forbearance without affecting his credit file, which he believed breached FCA guidance and CONC regulations. Zopa offered forbearance options including reduced payment plans and communication holds, but stated that any missed or reduced payments must be reported to Credit Reference Agencies. The ombudsman found that Zopa had appropriate policies and procedures, offered forbearance with due consideration, and correctly reported account activity in accordance with ICO principles. However, the ombudsman upheld Zopa's £75 compensation offer for failing to respond to Mr L in a timely manner, which caused distress and inconvenience. The ombudsman suggested Mr L consider registering a notice of correction with Credit Reference Agencies to explain his temporary financial hardship.
The Ombudsman's reasoning
The ombudsman found that Zopa had established appropriate policies and procedures for dealing with customers in financial hardship and approaching arrears, satisfying CONC 7.2.1R. Zopa treated Mr L with forbearance and due consideration by offering multiple support options without insisting on contractual payments, satisfying CONC 7.3.4R. The ombudsman determined that CONC 7.3.5 does not require firms to offer all forbearance options, only one or more as appropriate. Regarding credit file reporting, the ombudsman relied on ICO's PRAAD principles, which establish that reported data must be fair, accurate, consistent, complete and up to date. The ombudsman concluded that Zopa must report accurate account activity to protect other lenders and Mr L from making decisions based on inaccurate information. However, the ombudsman upheld the £75 compensation for Zopa's failure to respond to Mr L in a timely manner, which caused distress and inconvenience.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Zopa Bank Limited, all decisions | 574 | 26% |
| Mortgage administration / arrears handling, all decisions | 13,247 | 19% |
| Personal loan, all decisions | 23,643 | 29% |
Source
Read the original decision on the Financial Ombudsman Service website