Not upheld: chargeback handling, account closure, fraud claim rejection complaint against Zopa Bank Limited

Decision detail

Summary

Mrs C complained that Zopa Bank Limited improperly handled chargeback requests, closed her account, and rejected her fraud claims regarding gambling transactions made to merchant K. Zopa successfully recovered £4,744.24 through initial chargebacks but declined to pursue further chargebacks for additional gambling transactions, citing account closure and the fact that card scheme rules do not permit chargebacks for gambling. The ombudsman found the complaint not upheld, determining that Zopa had no obligation to pursue gambling-related chargebacks, the payments were not fraudulent as Mrs C had authorized them knowingly, and Mrs C bore personal responsibility for protecting herself from gambling harm despite being registered with GamStop.

The Ombudsman's reasoning

The ombudsman found that Zopa had no obligation to raise chargebacks for gambling transactions, as the card scheme rules do not permit chargebacks for gambling with rare exceptions. The payments were not established as fraudulent because Mrs C had authorized them using her registered device and was knowingly gambling, particularly given her GamStop registration which would have prevented use of UK regulated sites. While Zopa could have communicated more effectively, it did not act materially wrongly. The ombudsman emphasized that consumers bear personal responsibility to protect themselves from harmful gambling effects, and it is not the bank's responsibility to dictate how customers spend their money.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website