My Loan Book terminology
Updated a day 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.
- WithdrawalPending – The loan has been disbursed to the borrower by BACS; your statement will reflect this.
- Withdrawn – The funds have been received by the borrower, this is an active loan.
- Closed – The loan has been fully repaid.
- Collections – One or more payments have been missed on a loan. Our collections team are following up the arrears.
- Arrangement – The borrower has fallen behind on regular repayments but an arrangement has been made for them to pay a reduced regular amount.
- Default – A loan that has fallen more than four months in to arrears and has defaulted. It is at this point that, where a loan is covered by Zopa Safeguard, that the fund would typically pay out. Where a loan is not covered by Safeguard then Zopa in conjunction with P2PS will continue to chase the borrower on your behalf. You can find updates on these loans by viewing the comments section of your detailed loan book. Any payments which are returned will be passed back to lenders, net of fees.
- Hardship – This is when a borrower is in an extreme circumstance e.g. terminal illness. We gain evidence from the borrower regarding their situation before placing them into this state. Interest on their loan is frozen when in a state of hardship. For loans that are covered by Safeguard fund, the fund will still step in after four months of arrears.
- Settled – This is when borrower is unable to repay in full, but can repay a certain percentage of their debt with a lump sum on a loan marked as defaulted. Zopa will only accept these terms and apply the Settled state after a thorough assessment of the borrower’s circumstances. If all criteria are met, we will accept the one-off payment and write off the remainder of the bad debt.
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