you‘ve told us that you‘re closing your Zopa account; your ISA doesn‘t meet any of the regulatory requirements and is void; transfer all your ISA funds from your ISA to any other product you have with us (and if you don‘t have one, we‘ll open one for you for this purpose); continue to collect repayments in respect of your outstanding loan agreements and return them to any other product you have with us; transfer any non-performing loan to any other product you have with us; cash out your existing loan agreements using the secondary market and transfer the proceeds, as well as any other ISA funds, to your nominated bank account; or. If the interest rate on your loan is lower than the rate an investor would be paid on a new loan and not all repayments have been made on time, the projected return for your loan is likely to be less, so the purchasing investor may pay you £9.80. What’s Zopa’s own application like? Borrowers are allowed to repay their loans in full or in part at any time. You will be liable (legally and financially responsible) for foreseeable loss or damage suffered by Zopa: If you owe us or other Zopa customers money and you haven‘t paid it back when you should have done, we can use any money you have in any accounts with us to pay off some or all of the money you owe us or other Zopa customers. Zopa Limited (05197592) is incorporated in England and Wales and has its registered office at: 1st Floor, Cottons Centre, Tooley Street, London, SE1 2QG. Consequently, and in accordance with regulatory requirements, to ensure an orderly wind-down of our business, we have put in place a wind-down plan to ensure an efficient and orderly wind-down of our business with minimal impact to our customers. To make an investment in a loan, you need to transfer the amount you want to lend to the client account we have with a major high street bank which we use for all Zopa customers. Some of your loans may be ineligible for sale, or other investors may not be available to buy them. This should take no longer than three business days. Investors will also be entitled to loan repayments from borrowers they‘ve lent money to. If within eight weeks after receiving a complaint we are still not able to resolve the matter, we will send you a final response. If a loan customer defaults on their loan, we may also use specialist debt collection lawyers or a debt collections agency to assist with the collections process. If you‘re temporarily outside the UK and want to use Zopa, we won‘t be liable to you if your use of Zopa does not comply with any local laws. We added details of how we hold your money. If you don‘t agree with our final response you may refer your complaint to the Financial Ombudsman Service, who can be contacted by telephone on 0800 023 4567 or at www.financial-ombudsman.org.uk. 15 June 2020 We split out the Investor Principles section of the former Zopa Principles. 6 December 2019 We added details of circumstances where we may use a back-up servicer and the increased fees that may be charged if we have to use a back-up servicer. I really like Zopa … As set out in our Terms of Use, we‘ll be responsible for any loss or damage resulting from unauthorised access to your account or unauthorised instructions, unless we can show that you have given someone your security details or acted fraudulently. As described in Principle 3, you can choose not to reinvest repayments made on your loan agreements. We have proven that we can deliver great … If you want to close your account and end this agreement you will only be able to do this when all funds you‘ve placed on the lending platform for investment have been withdrawn or repaid by us to your nominated bank account. We‘ll do one or more of the following…, And pay out any sums recovered as follows…. My Zopa application was very straight-forward and worry free. I applied to Zopa for a small loan of 7500 to consolidate other debt. Transfer the benefit of all or part of any of your loans to another investor via the secondary market, to us, or to a third party. The loan servicing fee is a monthly fee applied to a loan agreement (so paid by the borrower), calculated using Zopa‘s servicing rate under the loan agreement to cover the cost of administering loan agreements and any other costs we have agreed with the borrower. Find out more about getting a loan with Zopa. Negotiate and execute on your behalf any agreements or deeds in relation to any loan application, e.g. If we invoke our wind-down plan and reasonably determine that it would be in your best interests to sell your loans to a third party you acknowledge that we may sell your loans for less than you would have received had you held the loans until the end of the loan term. If the change is favourable to you, we‘ll tell you within 30 days of the change being made. Once the borrower has repaid 1/3 of the total amount payable, though, we can only do this if we get a court order. transfer any ISA funds and loan agreements within your ISA to any other product you have with us or to your nominated bank account; or. I had never used Zopa before, but Wow, how easy and hassle free the application process was. Investor services are offered by Zopa Limited. We clarified what happens on termination of your account. Our Story We’re empowering people to FeelGood about their money. Any additional fees will be deducted from borrower repayments by Zopa or the back-up servicer in the same way as the loan servicing fee above. We uncovered that customers don’t always get the loan rate they expect to receive during the application process, and that some lenders are charging customers double what they advertise. Zopa Limited is authorised and regulated by the Financial Conduct Authority, and entered on the Financial Services Register (718925). We added clarification on loan servicing fees and loan sale fees. The Zopa lending platform directly matches investors with individuals who want to take out a loan. why Zopa shows customers the actual rate – or real rate - they’ll be offered prior to them applying for the loan, and won’t mark a customer’s credit file until after they’ve applied for the loan, therefore putting customers in control. Pre approving loan limit. If, after multiple attempts, we‘re unable to sell them we‘ll let you know we‘re taking the loans off the market, and you can choose to wait until they mature, or try to sell your eligible loans at a later date. This is average yearly interest with any charges taken into account – but the problem is there is no guarantee that you will be eligible for this rate. Zopa specializes in personal loans, and individual investors account for around 56% of its loan book. Zopa Limited is authorised and regulated by the Financial Conduct Authority, and entered on the Financial Services Register (718925). The asset you invest in: prime consumer loans . I particularly appreciate that I can pay off more in a month when i can afford it, thereby paying teh loan down more quickly. We‘ll provide you with an annual statement of interest earned for tax purposes, which we‘ll place on your Zopa dashboard. We will make changes to the Principles that we reasonably believe will not put you at a disadvantage, or because we need to respond in a fair way to: We may sometimes make changes without giving a reason – but we‘ll explain the impact of the change, and you‘ll always be able to end the service without charge before the change takes effect. In 2005 we built the first ever peer-to-peer (P2P) lending company to give people access to simpler, better-value loans and investments. You can transfer previous years‘ subscriptions provided they are held as cash. We‘ll do our best to send funds to you as soon as possible and no later than 7 days from your request. Loans Our products. “Representative” means the rate has to be made available to a majority of customers, but this could be as few as 51%, with the other 49% of borrowers being charged much more. "Straight forward application process, very clear and easy to understand, no hidden costs, excellent customer service." You also have the right to make a complaint directly to the Financial Ombudsman Service. We offer a flexible ISA, so if you make a withdrawal, you can replace the amounts withdrawn without using up any more of your annual ISA subscription limit, as long as you do so in the same tax year. Here are the steps: Choose how much you want to borrow and the repayment term; Enter some key details – such as … We make all transfers in cash, so if you ask us to transfer your current tax year subscriptions you agree that we‘ll deal with any loans you‘ve invested your subscriptions in as follows: Note : If we‘ve had to remove loans from your ISA they will still count as a subscription to your ISA and they will lose their ISA tax benefits and you may have to pay tax on any interest you receive. 4 August 2019 We confirmed when a vehicle loan customer will be considered to be in default. or changes to the functionality of our technology or the way we operate it. Match the funds you want to invest with suitable loan applications. We can‘t guarantee that we‘ll find a match for you. As an investor, there are a few things you need to know about those protections. If you are an institutional investor, these Principles may be varied and/or supplemented by your platform lending and servicing agreement with Zopa ( Platform Lending Agreement ). Read more. changes in general law or decisions or recommendations made by a court, any regulator or similar organisation or ombudsman we have to follow (e.g., the Financial Ombudsman Service), new industry guidance and codes of practice. Note : We may record or monitor telephone calls for training and quality purposes. But there are still a few issues to watch out for both before you apply for a loan and during the application process itself. This is because, with smaller loans, lenders still face the same administrative costs as with bigger sums. Sign in to Zopa. We need this flexibility so that we can manage our services over a long period of time. If you try to make a subscription which would exceed the maximum amount you can subscribe to your Zopa ISA for the current tax year, we‘ll contact you to let you know that you‘ve gone above the annual allowance and what your options are. I wanted a loan to purchase a car and checked on Martin Lewis to find the best rates. As described in Principle 14 below, if we implement our wind-down plan we may charge an additional fee per loan to cover our or the back-up servicer’s costs. The pioneers of peer-to-peer lending, Zopa launched in the UK in 2005 and now offers some of the lowest loan rates around. 20 June 2019 We added notes to explain the impact of investments in hire-purchase loans. We updated details of our complaints procedure. Any interest or income received from your funds held in Zopa‘s client money account will not be credited to your Zopa account and will be periodically transferred to Zopa‘s own account. All loans are repayable by monthly instalments which we collect by Direct Debit (unless we‘ve made a different arrangement with the loan customer). Zopa’s loans through UNSHACKLED.com will be available from 9.7% interest a year (APR). Alternatively, you can write to us at Zopa, Complaints Team, 1st Floor, Cottons Centre, Tooley Street, London, SE1 2QG or call our Customer Services Team on 020 7580 6060 between Monday to Friday 8am - 8pm. re-invest them (with other amounts already available for reinvestment) by logging in to your Zopa dashboard and turning on the reinvest function to automatically make repayments received available for investment. This agreement has no minimum duration and you can tell us that you want to end this agreement at any time. As result, it can be more economical to increase the size of your loan: this isn’t always the case, but it is worth checking. If we‘re unable to resolve your complaint within 3 business days we will keep you informed of our investigations until we are able to provide you with an initial response. We’ve been on this journey since 2004, when we built the first ever peer-to-peer lending company to give people access to simpler, better-value loans and investments. FCA regulation : If you are a lending business you can only invest in loans if you are authorised by the FCA. Instead of our customers having to upload bank statements to manually verify their income as part of the loan application process, they can now save time by allowing us to access their transaction information straight from their bank. We‘ll notify you if, by reason of any failure to satisfy the provisions of the Regulations, your ISA has, or will become void. But if you continue to use Zopa after we‘ve given you notice, you‘ll be deemed to have accepted it. They will typically run for 24 months, but borrowers can repay early at no extra cost. On the basis of this quotation search Zopa will place you into one their three markets. Whether you’re ready to submit your personal loan application or you’re still in the researching stage, it helps to know what you’ll need when you apply for a loan. While much of the process can be handled online, there are still some documents you may need to provide as part of your application. Note : See our ISA page for details on how we‘ll process your transfer request. Subject to Principle 14 above, nothing in the Principles will give any person, other than you and us (or any person to whom we have transferred our rights under your loan agreement), any rights under your agreement. As a result of money being classed as client money, if Zopa cease trading, the funds held in Zopa‘s client money account will not be considered to be part of Zopa‘s assets. because the borrower is in arrears or has defaulted) or it has a balance of a fraction of a penny which means we cannot transfer it to your nominated account, you agree to transfer the loans and fractional balance to us. We will need to do the following for you (acting as your agent) to make and manage your investments: Note : The ‘secondary market‘ allows investors to cash out some or all of their loans if they need access to their money before their loan customers are due to repay them. We'll also charge you an administrative fee each time you successfully sell a loan to the secondary market, which we'll deduct from the amount you're paid for the loan. This means you‘ll have to bear any loss if a loan customer is unable to repay and we‘re unable to recover any outstanding amounts from them. 5 tips to keep your information safe from phishing emails. Financial Services Compensation Scheme : The money you invest by making loans to loan customers is at risk and not protected by the Financial Services Compensation Scheme. We may sometimes decide not to exercise some of our rights (for example, we might give you some extra time to meet one of your obligations). Zopa Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and entered on the Financial Services Register (800542). Zopa loans Services, key features, interest rate. You can also transfer in cash from another existing ISA if we agree to accept this. If you need to access money you‘ve lent before it‘s due to be repaid, you can use the tool on your Zopa dashboard to sell loans within your loan book to the secondary market unless the loan customers are not up to date with their repayments. Note : A loan customer "defaults" when they fail to make the full amount of four repayments if they have a cash loan and three repayments if they have a vehicle finance loan. These include some specific protections that apply to vehicle finance loans: If the vehicle finance loan customer exercises these rights, the amount we recover (having taken into account late payments and any damage to the vehicle other than reasonable wear and tear) may be less than is needed to repay the amount that was lent. Zopa Limited (05197592) and Zopa Bank Limited (10627575) are both incorporated in England & Wales and have their registered office at: 1st Floor, Cottons Centre, Tooley Street, London, SE1 2QG. Despite your beneficial ownership, you mustn‘t try to transfer or sell your share except on the secondary market in accordance with these Principles. 1. Skip to content. Note : You can find more information about our products and how you can start investing in our FAQs. You must transfer all current year subscriptions (including any loans you invested the subscriptions in and any interest earned on the loans), though subscriptions for previous tax years can be transferred in whole or in part. You‘ll then beneficially own the loan and related rights or, if there is more than one investor, a share that‘s proportionate to the amount you lent relative to the other investors. Great rate for a car loan. We‘ll make statements available to you annually through your Zopa dashboard. Zopa Limited is a member of Cifas – the UK‘s leading anti-fraud organisation. Zopa is a member of Cifas – the UK’s leading anti-fraud association, and we are registered with the Office of the Information Commissioner (ZA275984, Z8797078). There may be restrictions on how the borrowing is managed, though. Set new password. If we can‘t contact you after making reasonable efforts to do so, we‘ll send the money back to your nominated bank account. It‘s your responsibility to deal with any tax liability. Personal Loans Personal loans from $1,000 to $50,000. We apply a loan servicing fee to each loan agreement that you invest in, which is deducted directly from each borrower repayment before the principal and interest is passed on to investors. And UNSHACKLED.com will use Zopa’s credit-checking technology to provide an ultra-quick approval and application process. This is applied to the proceeds from successful loan sales, and deducted from the final amount before being put into your holding account. For example: Note : If you invested in loans before we launched Zopa Bank then these loan agreements will still be between you and the borrower. If a borrower stops repaying, we have to follow certain procedures before we can get the remaining money back, and may need to ask a court to help. You can cancel your request in relation to any loan that has not yet been sold to a new investor. This does not leave a ‘footprint’ on your credit file and is only visible to Zopa and the credit bureau who conduct it. So refreshing and simple. Anything else we reasonably consider necessary to negotiate, administer and manage your loans, e.g. Looking ahead, Zopa Group said that consumer demand for credit continues to be healthy and noted a shift towards digital channels. However, this is an estimate, and may change (for example if we can‘t sell the full amount you have requested). 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