Not upheld: Fraud reimbursement (APP scams) complaint against Zopa Bank Limited trading as Zopa

Decision detail

Summary

Mrs P complained that Zopa held her liable for a loan she claimed she neither applied for nor knew about. She had been contacted by a scammer on social media offering cryptocurrency investment returns, and a loan was taken out in her name and the funds were moved to accounts controlled by the scammers. The ombudsman found that Mrs P knew about and participated in the loan application, evidenced by her submission of genuine details, a selfie, confirmation in a call that she applied for the loan herself, and monthly repayments being taken from her account. Although Mrs P lost the funds to the scam, she had used them believing they were for a legitimate investment. The complaint was not upheld and Zopa was not required to write off the loan.

The Ombudsman's reasoning

The ombudsman found that Mrs P knew about and participated in the loan application based on multiple pieces of evidence: the application used her genuine details, she sent a selfie, she received communications at her genuine email address, she confirmed in a call that she applied for the loan herself for home improvements, and monthly repayments were taken from her account. Although Mrs P lost the funds to a scam, she had used them believing they were for a legitimate investment, meaning she did benefit from the funds. The ombudsman was satisfied that Mrs P's participation in the application process was knowing and voluntary.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website