{"id":4235,"date":"2021-12-09T03:03:00","date_gmt":"2021-12-09T03:03:00","guid":{"rendered":"https:\/\/www.asadkarim.co.uk\/?p=4235"},"modified":"2021-12-07T08:04:32","modified_gmt":"2021-12-07T08:04:32","slug":"the-closure-of-p2p-lending-on-zopa","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=4235","title":{"rendered":"The Closure of P2P Lending on Zopa."},"content":{"rendered":"\n

Zopa<\/a><\/p>\n\n\n\n

Stopping\u202fP2P\u202fconsumer\u202finvestments\u202fat Zopa<\/h1>\n\n\n\n

After 16 years of peer-to-peer (P2P) consumer investments at Zopa, we\u2019ve taken the difficult decision to close this part of our business. We\u2019re committed to making the process as easy as possible for you. To support this, Zopa Bank will be buying your entire loan portfolio at current face value without any of the fees you\u2019d normally pay for a loan sale. You\u2019ll receive your investment balance back by 31 January 2022.<\/p>\n\n\n\n

We\u2019ve informed our regulators, the FCA, of our decision.<\/p>\n\n\n\n

What this means for you\u202f\u202f<\/h2>\n\n\n\n

We deliberated over\u202fa number of\u202foptions for how to close the P2P side of our business and we believe the sale of your portfolio in full represents the best outcome for our customers. Crucially, this will lock in the returns you\u2019ve already earned and ensure your funds are available to withdraw from your holding account in a timely manner.\u202f\u202f\u202f\u202f<\/p>\n\n\n\n

Zopa\u2019s purchase of your portfolio will happen in stages, starting in December with your newest loans and completing no later than\u202f31 January 2022 with the oldest loans.\u202f\u202f<\/p>\n\n\n\n

We\u2019ll purchase your loans at face value, so you\u2019ll receive the balance you have invested in loans back in full plus of course any interest that borrowers have already paid up to the date of sale. The money will be directed to your Zopa holding account and we\u2019ll send you a confirmation email at each stage of the sale, so you can withdraw your money as it comes in. Once the loan sale has been completed, our Innovative Finance ISA (IFISA) customers will need to request an ISA transfer to a new provider to retain their tax-free wrapper<\/p>\n\n\n\n

Why we\u2019re doing this\u202f\u202f\u202f \u202f<\/h2>\n\n\n\n

We\u2019re proud that our prudent, data-led model has achieved consistent positive returns for investors.\u202fThroughout\u202four history\u202fwe\u2019ve\u202fdelivered returns in line with\u202ftarget,\u202fincluding\u202fduring\u202fthe last two years,\u202fwhere\u202fwe\u2019ve\u202fdelivered\u202fan average return of\u202f3.9%.\u202f\u202f<\/p>\n\n\n\n

Sadly, over the last few years, customer trust in P2P investing has been damaged by\u202fa small number\u202fof\u202fbusinesses\u202fwhose approach led to material losses for customers investing in those platforms. Linked to this, the changing regulation in the sector has made it challenging to grow and remain commercially viable. We\u2019ve\u202ftherefore decided to\u202ffully\u202ffocus\u202fon Zopa\u202fbank\u202fand\u202fwe will be closing\u202fthe P2P business with effect from\u202f7 December.\u202f\u202f\u202f<\/p>\n\n\n\n

Since\u202fthe\u202fBank launch in June of last year, we\u2019ve already seen\u202fstrong — and growing — demand for our\u202fnew products. That\u202fearly success\u202fshows\u202fthat\u202fwe\u2019re able to help more people by\u202fproviding\u202fa wider\u202frange\u202fof innovative financial products like our award-winning credit card and fixed term savings accounts, which many investors have already opened. Once the sale of loans is complete, investors will have access to an\u202fexclusive\u202fsavings option from Zopa Bank.\u202f<\/p>\n\n\n\n

How will my investments work in the meantime?\u202f \u202f\u202f\u202f \u202f<\/h2>\n\n\n\n

From today, we\u2019re going to stop matching investor funds with loans, so all repayments will be directed to your holding account until the purchase goes through.\u202fAny money that\u2019s currently in the queue will be automatically returned to your holding account.\u202f<\/p>\n\n\n\n

We\u2019re also going to be stopping loan sales. We\u2019ve decided to do this as we don\u2019t think it\u2019s in customers\u2019 best interests to do a loan sale now. If you were to perform a loan sale today, you\u2019d be paying a 1% fee as well as any market rate adjustments to access part of your investment that you\u2019ll be receiving back within weeks, with no fees to pay.\u202fFor more on how investments will be impacted, check out our FAQs<\/a>.\u202f<\/p>\n\n\n\n

Updated FAQs and information centre\u202f\u202f \u202f\u202f\u202f \u202f<\/h2>\n\n\n\n

We expect our customer service agents to be very busy,\u202fso\u202fit\u202fmay\u202ftake them longer than normal to get back to you.\u202fTo help you during this time,\u202fwe\u2019ve made\u202flots of additional\u202finformation\u202favailable\u202fat the bottom of this email,\u202fthrough\u202four FAQs<\/a> and\u202fin\u202fthe\u202f information centre<\/a>, so please check\u202fthese out\u202fif\u202fyou have\u202fany\u202fimmediate\u202fquestions.\u202fThe\u202f Zopa Principles<\/a>\u202f(Section 14 \u2013 Contingency planning) includes information on our right to sell your loan portfolio.<\/p>\n\n\n\n

Finally,\u202fthank\u202fyou \u202f\u202f\u202f \u202f<\/h2>\n\n\n\n

As the world\u2019s first peer-to-peer platform, this has been an incredibly difficult decision, and one only taken after lots of deliberation. At Zopa, we\u2019re very proud of our peer-to-peer DNA and are\u202fhonoured that over\u202f90,000\u202fof you joined us on this journey over the last 16 years.\u202fWe hope that you\u2019ll stay with us\u202fbeyond your\u202finvestment\u2019s draw down\u202fand into the next chapter at\u202fZopa.<\/p>\n","protected":false},"excerpt":{"rendered":"

Zopa Stopping\u202fP2P\u202fconsumer\u202finvestments\u202fat Zopa After 16 years of peer-to-peer (P2P) consumer investments at Zopa, we\u2019ve taken the difficult decision to close this part of our business. We\u2019re committed to making the process as easy as possible for you. To support this, Zopa Bank will be buying your entire loan portfolio at current face value without any […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4235","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/4235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4235"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/4235\/revisions"}],"predecessor-version":[{"id":4236,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/4235\/revisions\/4236"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}