If my loans are covered by Safeguard are there any circumstances when the Safeguard will not step in?

Updated 11 months ago

As of 30 November 2020, the Safeguard Fund was wound down with the remaining balance paid to investors. Investors affected have received email communications about the payment and how this impacts them.

Zopa has many years’ experience in credit-checking borrowers and through careful monitoring of loans has a higher repayment rate than the banks. This means Zopa can predict very accurately the level of non-payers, and very accurately monitor the Safeguard fund to check it contains enough money to cover you for these borrowers, with an additional buffer.

If for any reason the Safeguard did run short of money, P2PS (the Trustee) would give lenders a proportion of the amount owed, rather than the whole amount. This would mean that you would at least get some of your money back. The Trustee would do this whilst Safeguard funds are built up from new loans, with the aim of being able to give you the full amount back in the future.

In the extremely unlikely event that the Safeguard was unable to give lenders any payment, P2PS would still take ownership of the loan and anything they recover would be given back to you. At Zopa, you lend your money in small chunks across lots of different borrowers, so if you did end up with a borrower who could not repay they would make up a very small amount of what you’ve lent out.

The Zopa Safeguard will assess every case individually and intends to approve each one. However, in exceptional circumstances it may choose not to approve a case or may only approve part of it, in order to protect the fund.

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