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Peer2Peer Finance News | November 18, 2017

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Zopa provides update on ‘disappearing money’ IT glitch

Zopa provides update on ‘disappearing money’ IT glitch
Suzie Neuwirth

ZOPA has said that it has fixed a technical issue that resulted in a small amount of money seeming to have disappeared from some investors’ accounts.

The peer-to-peer consumer lender said in a blog post on its website on Friday that the glitch had occurred due to recent changes to how they value loans on the secondary market.

“When investors sell their loans we work out their value, and compare them to new loans,” said Zopa. “If the loans being sold are worth less than new loans, the seller compensates the buyer for the difference, which is reflected in the loan’s price. This happens as part of the loan sale process, which we manage for you.

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“Recently, we made some changes to how we work out the value of these loans for more accurate pricing.

“Due to a technical issue, some investors may have paid too much when buying or selling loan. This made it seem as though a small amount of money had disappeared from their account; however, no money has been lost.”

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The world’s oldest P2P lender said that it has now fixed the issue and will be compensating impacted investors the difference between the amount paid and the true value of the loans bought.

It will be sending affected customers an email next week to confirm the exact amount of compensation.

“At Zopa, we take the pennies as seriously as the pounds and we’re sorry for any worry or inconvenience this issue may have caused,” said the platform.

Peer2Peer Finance News reported on Tuesday that several lenders had complained about pennies seemingly disappearing from their account when investing through Zopa’s Innovative Finance ISA.