Andrew Lawson

Zopa to refund investors affected by technical glitch

Last week, Zopa announced that it would be refunding investors who, due to a recent technical issue, paid too much when they bought or sold loans.

One of the ways investors can access their money early is by selling active loans to other investors on the secondary market.

The peer-to-peer lender stated that when investors sell their loans, Zopa works out the value and compares them to new loans.

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.

The P2P lending platform recently changed the way it worked out the value of these loans to get a more accurate pricing.

However, due to a technical issue, some investors may have paid too much when buying or selling loans, making it seem as though a small amount of money had disappeared from investors’ accounts, however, no money was lost.

The technical issue has now been fixed and Zopa will be refunding impacted investors the difference between the amount paid and the true value of the loans purchased.

A spokesperson for Zopa said: “…We take the pennies as seriously as the pounds and we’re sorry for any worry or inconvenience this issue may have caused.”

Zopa is contacting those affected this week via email letting investors know that a refund is on the way and confirming the total amount to be refunded.

Pictured above: Andrew Lawson, chief product officer at Zopa

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