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:

  1. When you invest in a loan you have the right to receive the borrower’s repayments. This remains the case even if we decide we are no longer able to operate the Zopa platform. If this were to happen, our wind-down plan would come into effect to ensure an efficient and orderly wind-down of our business with minimal impact to our customers.

  2. If we invoke our wind-down plan, we may carry out one of the following wind-down strategies:

    • we may transfer our obligation to service customer loans to a third-party back-up servicer. It will be able to exercise our rights under these investor principles and Loan Conditions under the Contracts (Rights of Third Parties) Act 1999 in order to continue to service the loans. Our current back up servicer is Target Servicing Limited, Target House, Cowbridge Road East, Cardiff CT11 9AU. Target is authorised and regulated by the Financial Services Authority (FCA) (registration number 454569) to administer your loan and collect borrower repayments on your behalf. We can select a different back up servicer and/or agree new terms, without giving you notice. We will always attempt to engage a servicer who has similar servicing standards to ours and is regulated and authorised by the FCA. Please note, that under this arrangement 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 may wind-down your loans over the normal term of the loans until all loans have been settled or otherwise determined
    • Transfer our entire platform to another business
    • Sell your loans to another company (which may not operate as a peer-to-peer platform) and use the proceeds to pay you the capital and interest due to you. we may sell your loans for less than you would have received had you held the loans until the end of the loan term.

    We review these arrangements regularly to ensure they’re up-to-date and still fit for purpose.

  3. 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. If a third party were engaged to manage the wind-down they would continue to ringfence your money in a client money account.

    It’s important to reiterate that this applies to cash held within your Zopa account, and not any money that borrowers still have to repay you. These loans would continue to be managed according to one of the arrangements mentioned above, which means that it could take up to five years – the maximum term for a Zopa loan – to receive your invested balance, plus interest, back.