On the 11th June I announced changes to the way loans are matched to lender funds. The changes made so far mean that lender funds on offer can regularly be reduced to zero on any one day, as this is currently happening in the longer market. The second stage of the matching engine updates has been released this week. This will display new funds and repayments separately and show when the funds were placed on offer. This allows repayment money to be re-lent quickly, while also allowing those placing new funds to see how long it is taking for their money to be lent out.
All of this improved efficiency has an impact on those wanting to cash out in an emergency by selling their loans using the “Rapid Returns” facility. Specifically, if there are fewer funds available when you want to sell your loans, then you will have to try again later.
One of our top priorities is ensuring lenders have quick and easy access to the money they lend through Zopa. So, we will be making changes over the coming weeks to Rapid Returns. We believe these changes will make it easier to access your money and the process will be clearer.
How the new process will work:
1) When you request a Rapid Return, the platform will work out which loans to sell in order to access the requested amount of money, after the 1% fee, and any charges payable based on current lending rates.
2) When you confirm your request the platform will try to sell your loans daily for up to 10 working days so you don’t have to login and repeatedly get a new quote.
3) As loans are sold, funds will then be held in your holding account. You will be able to login to check progress of the sale and you will be able to cancel the Rapid Return request to stop any further sales if you wish.
After these changes have been made we will also widen the range of loans eligible for Rapid Returns. We will update the Zopa Principles to reflect these changes and will notify all lenders.
Chief Technology Officer