Not upheld: irresponsible lending and account administration complaint against Zopa Bank Limited

Decision detail

Summary

Miss S complained that Zopa Bank Limited irresponsibly lent her a credit card with a £1,000 limit in 2022 and failed to support her during financial difficulties. She argued that adequate affordability checks had not been conducted. Zopa defended its position, stating it had carried out proportionate checks and had arranged multiple repayment plans before defaulting the account. The ombudsman found that Zopa's pre-lending checks were reasonable and proportionate, revealed a stable financial picture with no sustainability concerns, and that Zopa had appropriately offered forbearance measures before fairly defaulting the account due to multiple missed payments and prolonged arrears. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Zopa's pre-lending checks were reasonable and proportionate for a £1,000 credit limit. The checks revealed a relatively stable financial picture with no indicators of unsustainability. Historic adverse information was appropriately disregarded as it was from years prior. Zopa demonstrated forbearance by arranging multiple repayment plans before defaulting, and the default itself was fair given the multiple missed contractual minimum repayments and prolonged arrears.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website