Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_1219514449
November 28 2018

Zopa sells batch of defaulted loans to boost investor returns

Marc Shoffman Industry News, News consumer lending, debt collection, loan sale, loans, Zopa

ZOPA has sold a batch of defaulted loans to a debt collection agency, which it says will enable a faster and higher recovery for investors.

The peer-to-peer consumer lender informed its investors last week about the debt sale. It said that it has received upfront payment for the loans in question and will pass on the proceeds to investors within the next couple of weeks.

“It means that our investors will receive a faster, and likely higher, recovery on some defaulted loans in their loanbook,” Zopa said in an emailed statement to Peer2Peer Finance News.

Zopa did not disclose the size of the debt sale but said it would not be making any additional revenue from the deal.

Read more: Zopa maintains credit policy as it revises default expectations

The platform added that the loans were all in default at the time of sale and had not been making payments “despite working closely with our borrowers to find appropriate payment arrangements that work for them.”

Read more: Zopa gains full FCA approval

The defaulted loans have been sold to a Financial Conduct Authority-regulated debt purchasing firm that Zopa said it chose after “an extensive selection process”.

“They take a long-term view of making recoveries, and share our values of treating people fairly and compassionately while also working towards the best possible repayment outcome,” Zopa added.

Read more: Zopa unveils plan to wind down provision fund as it readies for IFISA launch

Collateral investors still waiting on returns six months into administration Ranger Direct Lending makes cash offer to close ZDP share class

Related Posts

Businessman separates the wooden puzzle with a picture of money. The concept of financial management and distribution of funds. Saving and investing. Property division. Legal services.

Industry News, News, Property, Top 3

50pc of the Octopus Choice portfolio has already been realised

Andrew Bailey

Industry News, News, Top 3

BoE’s independent directors back Bailey over LCF collapse

Rhydian_Lewis5122_RateSetterLogo

Industry News, News, Top 3

RateSetter confident of growing Metro Bank’s unsecured lending

Popular posts:

  • Funding Circle strikes another CBILS securitisation
  • How the government distorted the P2P market
  • RateSetter to stop investment withdrawals from 26 March
  • FCA puts the brakes on Buy2Let Cars
  • How to invest in an IFISA with £100 or less
  • Metro Bank plans to offer RateSetter lending through…
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by