If I take out a new loan, how much of my early repayment charge will be refunded?
Updated 5 months ago
If you take out a new Zopa loan within 60 days of paying off another Zopa loan early, you could be eligible for an early repayment charge refund. How much and if you’re refunded depends on a few conditions we’ve laid out below:
Your new loan must be taken out within 60 days of settling the loan on which you paid the early repayment charge.
The amount you’ll be refunded depends on whether your new loan is for more or less than the amount you settled your previous loan for. If your new loan:
is for the same amount or more than you settled your previous loan for – we’ll refund you the full early repayment charge.
is for less than you settled your previous loan for – we’ll refund you a proportion of the early repayment charge.
You won’t be eligible for a refund if:
you cancel either loan within the 14-day cancellation period; or
either loan is a personal contract purchase (PCP) or hire purchase (HP) car loan.
We will pay any refund into the bank account linked to your new loan, within 45 days of the new loan start date.
To help you work out how much you could be refunded, here's an example.
You settle your loan early while it has £5,000 outstanding. A £100 early repayment charge is applied.
If, within 60 days, you take out a new Zopa loan worth £5,000 or more, your early repayment charge would be refunded in full. This is because your new loan amount is equal to, or greater than, the amount left outstanding when you settled your previous loan early.
If your new loan was for £4,000, you’d be refunded £80 of your early repayment charge. This is because your new loan amount is 20% lower than the outstanding £5,000 you settled early. Therefore, your refund is also 20% lower than the £100 early repayment charge.
Please note, any refund you qualify for will be paid around 45 days into your new loan term.
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