Merchandise complaints
Merchants are responsible for ensuring fair customer outcomes and handling customer complaints appropriately.
If a customer raises a complaint relating to a product, service, delivery or retailer experience, you must follow your own complaints process and work collaboratively with Zopa Bank to resolve the issue fairly and promptly.
This article explains:
- Your responsibilities when handling complaints
- What happens when Zopa receives a complaint relating to a retailer or purchased item
- Expected response timeframes
- Potential financial recovery actions
- Escalation routes available to customers
Merchandise complaints
If a customer reports that goods are defective, faulty, damaged or not as expected:
- The customer must continue making payments while the issue is investigated
- There is no legal requirement to pause or waive the finance agreement during the investigation
- Retailers are expected to investigate the complaint fairly and provide regular updates to the customer
All parties involved in the agreement share responsibility for achieving a fair customer outcome.
When Zopa receives a complaint about a retailer or purchased item
If Zopa receives a complaint that relates to:
- The merchant
- The goods or services purchased
- Delivery issues
- Product quality or defects
- Refund disputes
- Order fulfilment
Our Complaints team will contact the retailer directly and provide details of:
- The customer’s complaint
- The customer’s requested resolution or outcome
- Any supporting information provided by the customer
The complaint will then be referred to the retailer for investigation and resolution.
What merchants are expected to do
Once a complaint has been referred by Zopa, merchants are expected to:
- Acknowledge the complaint directly with the customer
- Investigate the complaint fully
- Keep the customer updated throughout the investigation
- Provide a final response to the customer within 8 weeks
- Work collaboratively with Zopa where further information is requested
Customers are advised that the merchant should make contact within 30 days of the complaint being referred.
If the customer does not receive contact from the merchant within 30 days, they may return to Zopa for further support. In these cases, the complaint may be escalated to the merchant's account manager.
Potential financial recovery and liability
If a complaint is not resolved appropriately, Zopa Bank may recover the original payment made to the retailer.
Where merchant actions or failures result in costs being incurred by Zopa Bank, we may also reclaim:
- Customer refunds or compensation
- Financial Ombudsman Service (FOS) fees or awards
- Legal costs
- Statutory interest payments
- Distress and inconvenience payments
- Costs for independent reports or assessments
Customer escalation rights
Customers with regulated agreements may escalate unresolved complaints to the Financial Ombudsman Service (FOS).
For non-regulated agreements, customers may still pursue other routes available under consumer law. Merchants are expected to respect all applicable consumer rights and complaint handling obligations.
Customer outcomes and vulnerable customers
You must treat all customers fairly, with particular care given to vulnerable customers. This includes ensuring they understand the finance product and are not placed at a disadvantage.
Product restrictions
Finance must not be used for:
- Extended warranties
- Insurance products
unless explicitly approved by Zopa Bank.
Ongoing responsibilities
You must notify Zopa Bank of:
- Changes to your trading entity, business name, or ownership
- Any issues that may impact your ability to meet these obligations
If you need additional support, you can contact merchantsupport@zopa.com, or your Account Manager where applicable.
Need support?
If you need support with a complaint referred by Zopa, contact your account manager.
If further escalation is required, Zopa may work directly with your account manager to support resolution of the complaint.