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In 2013, we introduced Safeguard: a provision fund to cover losses for our investors during a normal economic environment. It was to be an efficient way for investors to offset bad debt against interest earnt on their loans. To date, all claims on Safeguard have been paid.

In 2015, HMRC updated their guidelines, enabling investors to make a claim for tax relief on losses directly. This meant the primary reason for the fund had been removed, and so in 2017 we began the process of retiring our Safeguard fund.

If you already invest with us, you can continue to invest in Access and Classic until 1st December 2017, or you can choose to move your money into Zopa Core or Zopa Plus straight away.

Zopa Core and Zopa Plus are not covered by Safeguard or any provision fund. When you invest your money, your capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS). Our risk statement has all the details.

Total in Safeguard fund today


Current coverage


Future expected Safeguard income collected from regular borrower payments


Coverage including future income


Last updated: 17th January 2018

Loss rate and Safeguard buffer

We fund Safeguard based on our expected lifetime default rates for loans which are covered by Safeguard. In addition to our expectations we add an additional 10% buffer.

If actual defaults are lower than expected, this buffer would increase.

If actual defaults are higher than expected, then Safeguard would struggle to repay the expected interest.

Safeguard responses

Last updated: September 2016

This graph demonstrates what would happen to interest rates and how Safeguard would perform under different default rates. This data reflects the current state of Safeguard across all loans covered by the fund, investor interest rates will differ depending on their individual loan books

Fund usage and principal repaid

This table shows what’s left the Safeguard fund compared to how much we put in to cover that batch of loans. We also look at the amount that has been paid back to understand whether the fund usage is in line with what we would expect at this stage of the loan lifetime.

Actual bad debt
fund usage
2017 24% 17%
2016 79% 53%
2015 100% 75%
2014 89% 91%
2013 49% 98%

Figures above only relate to A*-C Safeguarded loans

Important information

Before you go any further, remember past performance is not a reliable indicator of future results. And forecasts are not a reliable indicator of future performance.

Read more about risk information.

Our risk statement has all the details.

Zopa's public loan book showing historical performance is available for download.

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