Not upheld: irresponsible lending complaint against Zopa Bank Limited

Decision detail

Summary

Mr B complained that Zopa Bank Limited irresponsibly provided him with a £800 credit card in January 2022. Zopa had conducted checks using application data, credit reference agency information, and statistical data, which validated Mr B's income and showed he had low indebtedness at 8.33%. Although Mr B had historic defaults on his credit file from several years prior, they appeared resolved and he was managing his accounts. The ombudsman found Zopa's checks were reasonable and proportionate for the credit limit offered, and there was nothing to suggest Mr B would be unable to sustainably repay the credit. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Zopa's pre-lending checks were reasonable and proportionate for the £800 credit limit offered. The checks validated Mr B's income and showed low indebtedness. Although Mr B had historic defaults on his credit file, they were registered several years prior and Mr B appeared to be managing his accounts. There was nothing in the information available to Zopa to suggest Mr B would be unable to sustainably repay the credit, and no requirement for Zopa to request further evidence of income and expenditure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website