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Why its safe

It's safe

The money you lend at Zopa is
protected using all the safety
measures banks use... plus a
few more.


Low bad debt rates

Thanks to the safeguards that Zopa have put in place, lenders have experienced just 0.04% bad debt on all money lent to date.

Bad debt graph

Safety measures

  • Everyone who wants to borrow is identity-checked, credit-checked and risk-assessed. Zopa's underwriters review every loan application to ensure all borrowers have a good credit history. People with CCJs, high levels of unsecured debt or poor histories of credit repayment are prevented from borrowing.
  • To diversify any risk, your money is spread across a number of borrowers. If you lend £500 or more, your money is spread across at least 50 borrowers.
  • A collections agency chases any missed payments on the lender's behalf. This is the same process that banks and other financial institutions use.
  • You're protected against fraud. If someone accesses your account without your permission, then you're not liable for any losses that result (provided you've kept your personal details secure).
  • We give you an estimate of the bad debt you're likely to experience. This allows you to take it into account when you set your rates.
  • We have made a number of arrangements to take care of lenders' funds in the unlikely event that Zopa goes out of business.
    • Zopa is not involved in the contracts with your borrowers, so they remain legally binding and repayments will continue to be made.
    • Any money you transfer to Zopa is held in a segregated bank account to which neither Zopa nor its creditors have any claim.
    • We have contractually agreed with our collections agency that they will manage any collections activity for lifetime of any loans outstanding. Each month we set aside enough money to cover these costs in a segregated account.

Zopa as a company

VeriSign