As with any lending, there are some risks, the biggest being that a borrower doesn't repay. Zopa has the following steps in place to keep this risk to a minimum:
- Everyone who wants to borrow is identity checked, credit checked and risk assessed for their loan by our experienced team
- Your money is spread across a number of borrowers to diversify your risk
- A collections agency chases any missed payments on your behalf
As a sensible lending platform we have contingency plans designed to protect you the in the event that Zopa was to cease trading. Your money is lent directly to borrowers, meaning that your contract is with each borrower and is not part of Zopa's assets. Any money held in Zopa and not lent out is in a segregated account, meaning your money does not form part of Zopa's assets.