We wanted to update you on a recent change we made to our services. As part of our commitment to transparency for our customers, and to improve how we deal with difficult situations for our borrowers, we’ve added a new borrower state in My Loan Book: Settled.
On rare occasions, borrowers cannot repay the full amount of their debt. Settled will be applied when a borrower is unable to repay in full, but, can repay a certain percentage of their debt with a lump sum on a loan marked as defaulted. Zopa will only accept these terms and apply the Settled state after a thorough assessment of the borrower’s circumstances. If all criteria are met, we will accept the one-off payment and write off the remainder of the bad debt.
This borrower state will be used on very rare occasions. As always our collections team will work with these borrowers to help them to get them back on track with their repayments before considering a Settled state.
For loans that are covered by Safeguard, the funds will step in for loans protected by the scheme after four months of arrears.