Zopa stops accepting new money transfers

Zopa has announced to its customers that it is currently not accepting any new money transfers.

The peer-to-peer lending platform said that the time to lend new money was currently projected to be slow, which meant it would not be accepting new money transfers.

In an email to customers, Zopa stated: “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.”

Explaining the reason behind the increase in queues, Zopa added: “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.”

Zopa went on to add that it was committed to the risk and underwriting strategies that had served it well for more than 11 years and would not compromise its standard of borrower to increase loan disbursals.

The lender has also introduced a platform so it can aim to lend out investors’ money in an acceptable time.

“Throughout December, we will monitor the levels of new money,” it added.

“When necessary, we'll stop all inbound transfers while we disburse the new funds already in the queue.”

Zopa has told investors to check their weekly updates and live tracker for the latest information, and money already lent out and set to re-lend will continue as before, keeping existing money earning.

The limit will only impact new money into the platform, not customers’ repayments and funds in their holding account.

Those who transfer money when the limit is in place will have it returned and Zopa will advise by email regarding a refund.

“If upcoming months are projected to have longer lending speeds, we’ll activate the platform limit,” Zopa added.

“We will keep you informed about the platform limit via the weekly update email and your My Zopa dashboard.”

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