Contingency, if the worst should happen
Our business is robust, but we plan for all eventualities. That means we make sure your loans would be taken care of even if Zopa were to stop doing business. If that were to happen:
While Zopa creates and services your loans, the right to receive repayments is transferred to you when you invest in a loan. That remains the case even if Zopa ceased to exist.
We have arrangements in place to make sure that another company, Target Servicing Ltd, would service your loans if necessary. They’re authorised by the FCA to administrate loans and have extensive experience in this area.
The borrower loan servicing fees taken from loan repayments would be used to cover the ongoing costs of managing your loan book. This means the independent servicer would continue to handle your loans for you, so you can keep receiving your payments. But please note, there might be a transition phase during which loan servicing is slower than usual. It could also affect your ability to access your money early by selling loans to other investors.
We review these arrangements regularly to ensure they’re up-to-date and still fit for purpose. You can see further details of our current back-up servicer in the Investor Principles.
In line with Financial Conduct Authority (FCA) rules, any money you have with Zopa that is waiting to be matched with loans or in your holding account is ringfenced in a separate client money account and not mixed with Zopa’s own funds. If Zopa were to wind down, we would return this money to you as early as possible.
It’s important to reiterate that this applies to cash held within your Zopa account, rather than any money that is already invested in loans. These loans would continue to be serviced according to the original loan conditions by Target Servicing Ltd, which means it could take up to five years – the maximum term for a Zopa loan – to receive your invested balance, plus interest, back.