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Zopa not accepting new money transfers
Zopa have announced that they are not accepting new money transfers into the platform. An email was sent to all lenders this morning stating that due to current volumes of new money, combined with an expected seasonal fall in borrower demand, there will be a platform limit for new money.
With classic peer-to-peer lending, as supply remains constant and demand falls off, lending and borrowing rates would normally fall, and Zopa has reduced rates several times over the last few months. Zopa has taken the decision to also reduce the supply by preventing new money from entering the platform. Existing money from borrower repayments would be unaffected, and would continue to be relent as previously.
The email sent to lenders is as follows:
We always aim to lend your money out in a reasonable time. However, with current volumes of new money transfers combined with demands for loans seasonally declining in December, we don’t expect this to be achievable this month.
We are committed to the risk and underwriting strategies that have served us well for more than 11 years and will not compromise our high standard of borrower to increase loan disbursals. This has led us to introduce a platform limit for new money into the platform so we can aim to lend out your money in an acceptable time.
What does this mean for you?
Throughout December, we will monitor the levels of new money. When necessary, we'll stop all inbound transfers while we disburse the new funds already in the queue.
Currently, the time to lend new money is projected to be slow, so we are not accepting new money transfers. You can check your Weekly Update email and live tracker in My Zopa for the latest information. We recommend you log in to My Zopa and check the tracker before making a transfer.
Money you have already lent out and set to relend will continue as before, keeping your existing money earning. This limit only affects new money into the platform: not your repayments and funds in your holding account.
What happens if I transfer money when the limit is in place?
We'll return your most recent transfer and advise you of your refund by email.
What will happen after December?
We want to be able to lend your money in a reasonable time. If upcoming months are projected to have longer lending speeds, we’ll activate the platform limit. We will keep you informed about the platform limit via the Weekly Update email and your My Zopa dashboard.
You can find more detail in the FAQ section below, and as always, our Customer Services team are on hand.
Q: Why have the queues been increasing?
The queues have been increasing because Zopa has grown its investor base both in terms of new investors and total funds from investors. This growth has outpaced the growth of new loans. It is important to note that we have strict lending principles and will only lend to those who meet our risk criteria.
Q: What about existing money and repayments?
The platform limit only affects new money; repayments, and money already in the platform are not affected.
Q: Why can’t I just queue for longer?
We believe money should be simple and fair. We don’t think it’s fair for you to wait too long to lend out your money.
Q: How long does is usually take to start lending new money?
Since January 2016, the average time to start lending new money has been 5 days.
Q: What will happen when ISAs are launched?
We don’t yet have approval to be able to offer ISAs, when we know more we will give you an update.
Q: What happens for institutional investors?
Our current ratio of institutional and retail investments will stay the same.
Q: If my funds are returned, how long will it take?
We refund money by BACS, which typically takes 3 business days, depending on your bank.
Q: How long does it take Zopa to recognise that my funds need to be returned?
As soon as we receive your transaction, we will know that your funds need to be refunded. We will let you know via email and begin the refund process immediately.
There is a message when lenders login as follows:
We are not accepting new money transfers
We have a limit for new money into the platform so that we can aim to lend out your money in a reasonable time. This limit only affects new money into the platform: not your repayments or funds already in your holding account. Read more.
Any new money transfers into the platform will be refunded directly to your bank account.
Check the Weekly Lender for updates about the platform limit.