Loan Conditions

Set out below are the detailed legal terms that apply to Loan Contracts entered into on the Lending Platform. There are two different sets of terms: the first applies to Loan Contracts for personal unsecured loans (or cash loans); the second applies to Loan Contracts for vehicle refinancing. Each set of terms operates independently of the other set of terms.

Click on the links below to skip to the relevant terms:

  1. Loan Conditions - Cash Loan
  2. Loan Conditions - Vehicle Financing

Loan Conditions - Cash Loan

These Loan Conditions will apply to each Loan Contract entered into through the Lending Platform for a cash loan.

Capitalised terms not otherwise defined in these Loan Conditions have the meaning given in clause 16.

1. Loan Approval, Drawdown and Disbursement

  1. Once each of your Confirmed Bid has been matched with each Lender’s Market Offer (and you have electronically counter-signed a credit agreement with any Lending Business), Zopa will provisionally credit your Zopa Wallet with the total amount you have borrowed, less the Borrowing Fee, but actual payment of this amount to your Nominated Account is (or directly to the supplier(s), if any, referred to in clause 1.2) subject to:
    1. you providing Zopa with certain additional information which Zopa will ask you for, provided that this additional information and the information you gave Zopa before making the Confirmed Bid is not found by Zopa to be inaccurate or deficient in any respect (if Zopa discovers that it was, then the Loan Contract will be void and Zopa will report this information to credit reference and fraud agencies);
    2. Zopa checking your Credit Rating and the information you provide Zopa to assess the affordability of your Repayments. You acknowledge that credit reference agencies link together the records of you and anyone that you have advised is a financial associate (e.g. someone with whom you have a joint credit account) including previous and subsequent names of parties to the account. Links between financial associates will remain on your, and their, credit reference files until such time as you or your partner successfully files for a disassociation with the credit reference agencies. When assessing the affordability of your Repayments, Zopa may take into account Information about your financial associates in your credit reference.
  2. As soon as reasonably practicable after satisfactory completion of the checks under clause 1.1, you authorize Zopa to, and Zopa shall disburse to the supplier(s), if any, specified under "Other Financial Information" on the first page of the Loan Contract the amount(s) there specified as being payable for the items there specified; and as to the remaining balance (if any) of the Amount of Credit, directly to your Nominated Bank Account.

2. Payment

  1. You must repay the total amount payable under each Loan Contract by paying the Repayments on the Repayment Date shown in the Loan Contract or, where you enter into more than one Loan Contract at or about the same time, the relevant Loan Contract Summary. Prompt payment is essential. If you are late in paying a Repayment, in addition to the right to enforce the Loan Contract, you must pay interest on the Repayment from when it is due until when it is paid at the interest rate represented by the Rate of Interest.
  2. Your obligation to make such Repayments will be satisfied by making payments into the Zopa Customers' Account (or such other bank account as Zopa may approve) by using a payment method approved by Zopa. If we have approved an arrangement under which your Repayments will be deducted and paid to us by a third party on your behalf from monies owed to you by that third party (e.g. you may have arranged for your Repayments to be deducted and paid from your salary):
    1. you are still responsible for ensuring that the Repayments are made on time; and
    2. if any Repayment is missed under that arrangement, we shall be entitled to collect the missed Repayment by any other payment method that you have registered with us, including under any direct debit mandate.
  3. Each Repayment will be pro-rated between the Lenders in accordance with each Loan Contract and used:
    1. first pay any arrears of principal and interest under the Loan Contract;
    2. then to pay the interest and principal due under the latest monthly Repayment that is due and payable under the Loan Contract;
    3. then to pay any fees, charges, costs or expenses due to Zopa or any third party under the Loan Contract.
  4. All Repayments will be made to the Lender without deduction of income tax.
  5. If your personal or employment circumstances change (other than your ability to make one or more Repayments at all) you may wish to change the date upon which you make your Repayments, in which case.
    1. You may ask Zopa to change the Repayment Date by notifying Zopa that you wish to do so and specifying the new date within the month upon which you wish your Repayments to take place. Such requests may be made by logging-in to MyZopa and following the instructions there, or by email to contactus@zopa.com or by calling us at the general contact number shown on the Lending Platform (such calls will be recorded to confirm your consent to the change).
    2. Depending on whether the revised Repayment Date is before or after the original Repayment Date in the month, the amount of your next Repayment on the new Repayment Date will be adjusted to take account of the number of days between the new Repayment Date and the previous one. The remaining Repayments (assuming no further changes) will revert to the usual Repayment amount.
    3. Zopa will then acknowledge and confirm the new Repayment Date and any change to the amount of your next Repayment as a result, before effecting any change. Depending on how you request the change, this acknowledgement and confirmation will take place online, during the course of your telephone call or by an exchange of email with you.
    4. Zopa may request justification for the change to the Repayment Date and reserves the right not to complete the request if in its sole and absolute discretion it determines that the change is not due to an appropriate change in circumstances or that the process set out above is not being followed.
  6. In the event that you become entitled to a refund of any amount paid by Zopa to a supplier under clause 1.2, you hereby transfer to Zopa your right to that refund, and agree that the proceeds of any such refund shall be credited to the Zopa Customers’ Account and to your Zopa Wallet towards repayment of the amount outstanding in respect of each Loan Contract; and, in the event that your Loan Contract is discharged as a result of such payment, any surplus shall be paid by us to your Nominated Bank Account within 30 days after such discharge.

3. Early Settlement

  1. You may at any time settle your Loan Contract early and end the Loan Contract in whole or in part by following the instructions in My Zopa or as notified by the Collection Agency and repaying the full or partial amount you wish to repay.
  2. You agree that Zopa or the Collections Agency will, on the Lenders' behalf, demand Repayment of the full amount owed by you under your Loan Contract if you:
    1. pay late for more than two consecutive months;
    2. have lied in a way which affects the decision to allow you to register as a Zopa Customer; or
    3. die, become bankrupt or make a voluntary applicable with people you owe money to.
  3. Before making any demand, Zopa will take all the steps the Lenders are required to take by law for your protection.

4. Charges and missing payments

  1. To borrow via the Lending Platform, you must pay Zopa (a) the applicable Borrowing Fee, which will be included in the Amount of Credit; and (b) the monthly Loan Servicing Fee, which will be deducted from each Repayment. We may add to the Borrowing Fee and/or the Loan Servicing Fee an amount which is estimated by us to reflect the potential for a Default under the Loan Contract(s), based on the Credit Rating applicable to the Borrower under the Loan Contract(s) and our assessment of whether there are sufficient funds in the Zopa Safeguard Trust, where applicable (“Safeguard Contribution”). When the relevant fee is paid, the amount of each Safeguard Contribution will be deducted and paid to the Zopa Safeguard Funds Account.
  2. To take advantage of the Fast-Track service - where if your application is successful you receive the credit sum within one working day of approval - you will be charged the applicable Fast Track Fee.
  3. Missing payments could have severe consequences, including commencement of legal proceedings and an adverse report on your credit history, which may make obtaining credit more difficult.
  4. If you are late in making payment, the Collections Agency may charge you an administration fee for the work it does in attempting to collect your Repayments ("Late Payment Fee"). The Late Payment Fee will be 22.5% of the amount that is overdue (which amount shall include any interest that accrues on overdue amounts) except where a field agent is required as part of the collections process, in which case the Late Payment Fee will be 40% of the amount overdue. The Collections Agency reserves the right to change the percentage charged (over which neither the Lenders nor Zopa has any control).
  5. Other fees or charges that may be charged by Zopa or the Collections Agency in relation to the Loan Contract and added to the balance outstanding are:
    1. Tracing charges (for finding you if you cannot be contacted by Zopa or the Collections Agency) - £25
    2. Charges for document retrieval and copying up to 20 pages (other than as a result of statutory entitlement, for which there may still be a charge as provided by statute) - £35
    3. Debt counselling service (if you fall into arrears and Zopa or the Collections Agency cannot contact you) - £80
    4. Litigation costs and expenses, including legal fees and expenses, to cover litigation recovering outstanding arrears, in which case you will be advised of the cost if such action proves necessary.
  6. You will be notified by Zopa or the Collections Agency if these charges change in nature or amount and of the reason for the change. If you do not agree to the change you may settle your Loan Contract early by following the instructions at clause 3.

5. Statement of Account

  1. You have the right to receive, on request, and free of charge, at any time throughout the duration of the Loan Contract, a statement in the form of a table showing:
    1. the details of each Repayment owing under the Loan Contract;
    2. the date on which each Repayment is due, the amount and any conditions relating to the payment of the Repayment;
    3. a breakdown of each Repayment showing how much comprises:
      1. capital Repayment,
      2. interest payment, and,
      3. if applicable, any other charges.

6. Other costs that are not paid via Zopa, the Lenders or imposed by them

You are responsible for any telecommunications charges, digital television subscription or other charges for the time you spend accessing the Zopa Sites via the Internet or any wireless, mobile or television or other relevant network.

7. Assignment of Loan Contracts

  1. Each Lender may freely assign or transfer or otherwise dispose of his or her right, title and interest in the Loan Contract and all associated rights under the Zopa Principles to any third party via the Lending Platform (or any trading exchange or in any other manner approved by Zopa for that purpose).
  2. Your rights and obligations under a Loan Contract that has been assigned of transferred shall not be adversely affected in any way whatsoever.
  3. You shall not be entitled to assign or transfer any Loan Contract to another person.

8. Law applicable to the conclusion of a distance contract:

The laws of the United Kingdom (and English law in particular) are the basis for the establishment of relations with you prior to the conclusion of the Loan Contract.

9. Law applicable to the Loan Contract:

The Loan Contract is governed by and construed in accordance with English law; and the parties submit to the non-exclusive jurisdiction of the English courts.

10. Language of this document: the Loan Contract and Contractual Communications

The Loan Contract and all related documentation are in the English language; and the Lenders undertake to communicate with you in English during the duration of the Loan Contract.

11. Other legal terms

  1. Each of the clauses of the Loan Contract operates separately. If any court or relevant authority decides that any of them are unlawful, the remaining clauses will remain in full force and effect.
  2. If either party does not strictly apply its rights under the Loan Contract at any time, that will not prevent that party from doing so later.
  3. Any notices given to you in relation to any Loan Contract will be put in your My Zopa, in which case you will also receive by email to your email address a prompt to refer to your My Zopa, or may be sent by post to your last known postal address.
  4. Please contact Zopa if you think there is a mistake with any records relating to your Loan Contract. The process is explained at clause 13.
  5. You confirm that you have a regular source of income, do not expect this to change over the lifetime of the Loan Contract and have no reason to think that you will be unable to make the Repayments required.

12. Cancellation or the Right to Withdraw

  1. If your Loan Contract is a regulated credit agreement, you will have a right to withdraw in accordance with the provisions on page 2 of that Loan Contract (Right to Withdraw). If your Loan Contract is not a regulated credit agreement, you will have a right of cancellation under this clause 12.
  2. Once you have signed the Loan Contract, you will have for FOURTEEN calendar days (starting the day on which each of your Confirmed Bid has been matched with each Lender’s Market Offer) a right to cancel the Loan Contract, orally or in writing in accordance with clause 12.2, without giving a reason.
  3. If you wish to cancel the Loan Contract under clause 12.2:
    1. you can send a WRITTEN notice of cancellation to contactus@zopa.com or cancel ORALLY by calling 0207 580 6060 (please be aware conversations may be recorded for evidentiary purposes);
    2. you must repay the whole loan amount (including interest charged, but not the Borrowing Fee);
    3. you must ensure the repayable amount is repaid to the Zopa Customer’ Account within 30 (THIRTY) days of sending your written notice of cancellation or cancelling orally. Should funds fail to reach that account by this time, you will be deemed to have accepted the Loan Contract such that our normal terms and conditions will apply as if the Loan Contract had not been cancelled.

13. Complaints and complaints handling

  1. If you want to make a complaint about the Loan Contract or Zopa you can email contactus@zopa.com with brief details of your complaint and your account reference. Zopa will acknowledge your complaint within one business day. Zopa will then investigate and send you an initial response. This should take no longer than three business days.
  2. We will keep you informed of our investigations and will aim to resolve the matter within four weeks of receiving your complaint.
  3. If within eight weeks after receiving a complaint we are still not able to resolve the matter, we will send you a final response. If you don't agree with our final response you may refer your complaint to the Financial Ombudsman Service, who can be contacted by telephone on 0800 023 4567 or at www.financial-ombudsman.org.uk. You also have the right to make a complaint directly to the Financial Ombudsman Service.
  4. If you wish to make a complaint about Zopa Repayment Protection (which we no longer sell and have not sold since April 2008), you should follow the complaints procedure outlined in the policy documentation. If you complain to us about the policy, we will refer you to the product provider.

14. List of Lenders

You can view a list of your Lenders, including how much each of them has lent you and at what rate, will be available in the "Borrowing" section of your "My Zopa". You can access your MyZopa by logging in securely to the Lending Platform via the Zopa site.

15. Your Personal Data

We will process your personal data in connection with the performance of our rights and obligations under this Agreement and our regulatory obligations, consistent with Principle 11 of the Zopa Principles. We may receive personal data directly from you, generate personal data about you and/or receive personal data about you from third parties (such as Zopa, the Collections Agency or parties engaged in the same or similar business to that of the Collections Agency). We may disclose your personal data to the Collections Agency and the bodies referred to under "Supervisory Authority" above and will only disclose your personal data to locations outside the European Economic Area in circumstances where there is adequate protection for the data or otherwise with your prior consent. You should contact us in writing at our address on page 1 of the Loan Contract to exercise your rights to access and rectify personal data we hold about you. Personal data means data which relate to you and from which you can be identified, or from which you can be identified in combination with other information which is, or is likely come into, our possession.

16. Defined Terms

In these Loan Conditions the following words have the following meanings-

"Borrowing Fee"
means the fee charged by Zopa for enabling you to borrow on the Lending Platform, as specified in your Personalised Quote and any subsequent Loan Contract, and may include a Safeguard Contribution;

"Borrower", "you", "your"
means the Zopa Customer identified as the Borrower in the Loan Contract which shall include an amount estimated by Zopa to reflect the potential for a Default, based on the Credit Rating applicable to your Loan Contract;

"Collections Agency"
means Credit Resource Solutions Limited of Rosemount House, Rosemount Estate, Huddersfield Road, Elland, West Yorkshire HX5 0EE or such other duly authorised collections agency as may be appointed from time to time;

"Confirmed Bid"
means a bid which a potential Borrower posts on the Lending Platform confirming an Indicative Bid;

"Credit Rating"
means a credit rating supplied by Equifax plc or such other credit reference agency that Zopa may use from time to time in relation to the Borrower for use in connection with the Lending Platform;

"Default"
means the failure of the Borrower to pay the full amount of four Repayments then due and payable in relation to the Loan Contract;

"Fast Track"
means the optional process by which Zopa disburses the proceeds of an approved Loan Contract under clause 1 on the same day or next morning (depending on the time of day it was approved);

"Fast Track Fee"
means the variable fee, with a maximum of £10.00, payable by you to Zopa in order to use Fast Track;

"Lender"
means the Zopa Customer identified as the Lender in the Loan Contract and any assignee, transferee or successor in title following any assignment, transfer or disposal under Clause 7;

"Lending Platform"
means the internet marketplace which Zopa operates at www.zopa.com for the purpose of matching Market Offers and Confirmed Bids;

"Loan Conditions"
means these terms and conditions;

"Loan Contract"
means the agreement, incorporating the Loan Conditions, under which the Lender agrees to make a loan to the Borrower;

"Loan Contract Summary"
means the summary of all the Loan Contracts entered into by the Borrower at or about the same time (where more than one Loan Contract is entered into);

"Loan Servicing Fee"
a monthly fee under the Loan Contract to cover the cost of administering Loan Contracts, which may include a Safeguard Contribution (to the extent that the full amount for the Safeguard Contribution was not included in the Borrowing Fee), as specified under the heading "Key Financial Information" in the Loan Contract Summary;

"Market Offer"
means an offer to lend to a Borrower, which a potential Lender posts on the Lending Platform;

"My Zopa"
means the part of the Lending Platform which can only be accessed by a Zopa Customer, using his or her own email address and Passcodes;

"Nominated Account"
means the current account you have with a UK bank from which you authorise Zopa to collect Repayments under the direct debiting scheme (or other payment method approved by us), and/or to which Zopa will make any payments due to you, as the case may be;

"P2PS Limited"
means the independent, not for profit company, limited by guarantee, incorporated in the UK, with its registered office at 2 Tombland Alley, Norwich, Norfolk, UK, NR3 1HL (Company No. 06800515) which is authorised and registered by the Financial Conduct Authority, and entered on the Financial Services Register under firm registration number 0626216;

"Passcodes"
means your unique email address, password, answers to security questions, which you specify when you register with Zopa to use the Lending Platform;

"Repayment"
means each instalment due and payable by the Borrower under each Loan Contract, which shall comprise principal and interest, as well as any amount otherwise due and payable by the Borrower under the Loan Contract;

"Safeguard Contribution"
has the meaning given in Clause 4.1;

"Zopa"
means Zopa Limited, whose registered office is 1st Floor, Cottons Centre, Tooley Street, London. SE1 2QG. Company Registration Number 05197592. Zopa Limited is also:

  • the holder of Consumer Credit Licence Number 563134;
  • authorised and registered by the Financial Conduct Authority, and entered on the Financial Services Register under firm registration number 563134;
  • registered with the Office of the Information Commissioner (registration number Z879078);
  • a member of CIFAS;

"Zopa Customer"
means an individual who has completed the registration process to use the Lending Platform and has been issued with his or her own Passcodes;

"Zopa Customers' Account"
means any segregated bank account that Zopa maintains with Royal Bank of Scotland (or such other UK bank as Zopa may choose from time to time) for the sole purpose of holding funds to which Zopa Customers are beneficially entitled in accordance with the Zopa Principles and/or any Loan Contract;

"Zopa Principles"
means the Zopa Principles you agreed when registering to use the Lending Platform, as amended from time to time, a copy of which is available on the Lending Platform;

“Zopa Safeguard Trust”
means the trust, constituted by the payment of funds contributed by Borrowers as part of their Borrowing Fee and/or Loan Servicing Fees, where their Loan Contracts are covered by the trust, which funds are held on trust by P2PS Limited for Lenders in accordance with the Zopa Principles;


Loan Conditions – Vehicle Financing

These Loan Conditions will apply to each Loan Contract entered into between a Lender and a Borrower through the Lending Platform for the financing of a balloon payment ("Balloon Financing"), or the refinancing ("Vehicle Refinancing") of existing hire purchase or conditional sale agreements ("Existing Finance Agreements") that you have in place with a third party lender identified in the Loan Contract Summary ("Existing Lender").

Capitalised terms not otherwise defined in these Loan Conditions have the meaning given in clause 24.

1. Loan Approval, Drawdown and Disbursement

  1. Once each of your Confirmed Bids has been matched with each Lender’s Market Offer, this Loan Contract will come into effect and payment (in accordance with clause 3) will be made, subject to:
    1. you providing Zopa with certain additional information which Zopa will ask you for, and this additional information and the information you gave Zopa before making the Confirmed Bid is not found by Zopa to be inaccurate or deficient in any respect (if Zopa discovers that it was, then the Loan Contract will be void and Zopa will report this information to credit reference and fraud agencies);
    2. Zopa checking your Credit Rating and the information you provide Zopa to assess the affordability of your Repayments, and concluding that you meet the affordability criteria. You acknowledge that credit reference agencies link together the records of you and anyone that you have advised is a financial associate (e.g. someone with whom you have a joint credit account) including previous and subsequent names of parties to the account. Links between financial associates will remain on your, and their, credit reference files until such time as you or your partner successfully files for a disassociation with the credit reference agencies. When assessing the affordability of your Repayments, Zopa may take into account Information about your financial associates in your credit reference.

2. Charges

  1. To borrow via the Lending Platform, you must pay Zopa (a) the applicable Borrowing Fee, which will be included in the Amount of Credit; and (b) the monthly Loan Servicing Fee, which will be deducted from each Repayment. We may add to the Borrowing Fee and/or the Loan Servicing Fee an amount which is estimated by us to reflect the potential for a Default under the Loan Contract(s), based on the Credit Rating applicable to the Borrower under the Loan Contract(s) and our assessment of whether there are sufficient funds in the Zopa Safeguard Trust, where applicable ("Safeguard Contribution"). When the relevant fee is paid, the amount of each Safeguard Contribution will be deducted and paid to the Zopa Safeguard Funds Account.
  2. Note that our Fast Track service (whereby cash loans are disbursed within one working day of approval) is not available for vehicle finance agreements such as this Loan Contract.

3. The Loan Contract with you

  1. You agree to buy the Vehicle from your Existing Lender pursuant to the terms of your Existing Finance Agreement. You agree that you will then immediately and automatically sell the Vehicle to us (under this Loan Contract) and any other Lenders indicated on the Loan Contract Summary (under the Loan Contracts to which they are parties), such that we and the other Lenders will own the Vehicle jointly and in shares proportionate to the amount contributed by each Lender. References in this Loan Contract to our ownership of the Vehicle will mean our share of ownership of the Vehicle.
  2. The price at which we buy the Vehicle from you will be our share of the Amount of Credit less the Borrowing Fee. We will pay this amount directly to Existing Lender and not to you. This payment to the Existing Lender will constitute the fulfilment, on your behalf, of your obligation under the Existing Finance Agreement to pay for the Vehicle.
  3. Ownership of the Vehicle will transfer to us immediately after it transfers to you under the Existing Finance Agreement.
  4. We agree to hire the Vehicle to you from the point at which ownership of the Vehicle transfers to us as a result of your sale of the Vehicle to us.
  5. At the end of the agreed duration of the Loan Contract (as indicated on the Loan Contract Summary) you will become the owner of the Vehicle if you have paid all the Repayments and you pay the Purchase Fee. If you choose not to pay the Purchase Fee, the Loan Contract will end, ownership of the Vehicle will remain with us and you will have to return the Vehicle in accordance with clause 15.
  6. Zopa will act as our agent(s) for the purpose of administering certain aspects of the Loan Contract. In particular: Zopa will make payment to the Existing Lender; Zopa will collect Repayments from you on our behalf; Zopa may carry out certain administrative functions related to the Vehicle; and you may contact Zopa through the Lending Platform (or as set out in this Loan Contract) and Zopa will deal with your notification or enquiry on our behalf. However, Zopa will not have any contractual rights or obligations under this Loan Contract, which is between the Lender and you.

4. Payment

  1. You must pay the total amount payable under each Loan Contract by paying the Repayments on the Repayment Date shown in the Loan Contract Summary. Prompt payment is essential. If you are late in paying a Repayment, in addition to the right to enforce the Loan Contract, you must pay interest on the Repayment from when it is due until when it is paid at the interest rate represented by the Rate of Interest.
  2. Your obligation to make such Repayments will be satisfied by making payments into the Zopa Customers' Account or such other bank account as Zopa may approve.
  3. Each Repayment will be pro-rated between the Lenders in accordance with each Loan Contract and used:
    1. first to pay any arrears under the Loan Contract;
    2. then to pay the interest and principal due under the latest monthly Repayment that is due and payable under the Loan Contract;
    3. then to pay any fees, charges, costs or expenses due to Zopa or any third party under the Loan Contract.
  4. All Repayments will be made to us without deduction of income tax.
  5. If your personal or employment circumstances change (other than your ability to make one or more Repayments at all) you may wish to change the date upon which you make your Repayments, in which case:
    1. You may ask Zopa to change the Repayment Date by notifying Zopa that you wish to do so and specifying the new date within the month upon which you wish your Repayments to take place. Such requests may be made by logging-in to MyZopa and following the instructions there, or by email to contactus@zopa.com or by calling Zopa at the general contact number shown on the Lending Platform (such calls will be recorded to confirm your consent to the change).
    2. Depending on whether the revised Repayment Date is before or after the original Repayment Date in the month, the amount of your next Repayment on the new Repayment Date will be adjusted to take account of the number of days between the new Repayment Date and the previous one. The remaining Repayments (assuming no further changes) will revert to the usual Repayment amount.
    3. Zopa will then acknowledge and confirm the new Repayment Date and any change to the amount of your next Repayment as a result, before effecting any change. Depending on how you request the change, this acknowledgement and confirmation will take place online, during the course of your telephone call or by an exchange of email with you.
    4. Zopa may request justification for the change to the Repayment Date and reserves the right not to complete the request if in its sole and absolute discretion it determines that the change is not due to an appropriate change in circumstances or that the process set out above is not being followed.
  6. In the event that you become entitled to a refund from your Existing Lender of any amount paid by us on your behalf under clause 3.2, you hereby transfer to Zopa your right to that refund, and agree that the proceeds of any such refund shall be credited to the Zopa Customers’ Account and to your Zopa Wallet towards Repayment of the amount outstanding in respect of each Loan Contract; and, in the event that your Loan Contract is discharged as a result of such payment, any surplus shall be paid by us to your Nominated Bank Account within 30 days after such discharge.

5. Other obligations

Unless and until you acquire ownership of the Vehicle in accordance with the terms of this Loan Contract, you must:

  1. keep the Vehicle in your possession or control at all times;
  2. tell us where the Vehicle is when we ask you;
  3. pay to keep and maintain the Vehicle in good and serviceable repair and condition and ensure it is regularly serviced in accordance with the manufacturer's recommendations and any applicable warranty. "Good and serviceable repair" means good condition excluding fair wear and tear. You can find out the full definition of "good and serviceable repair" from the British Vehicle Rental and Leasing Association. You shall be responsible for all risks, of whatever kind, affecting the Vehicle. If the Vehicle is unusable for any period of time you must still keep up your Repayments. The Lenders will be the owner of any replacement parts, which will automatically be deemed to be part of the Vehicle and subject to this Loan Contract. The Vehicle will as between us and you remain at all times personal property;
  4. ensure, where applicable, the vehicle has a valid Ministry of Transport (MOT) test certificate;
  5. pay in full any losses we suffer in relation to any loss, depreciation, damage, theft or destruction of the Vehicle or any part of the Vehicle whether or not the loss, depreciation, damage, theft or destruction is your fault;
  6. write to us immediately to tell us if there has been any damage to the Vehicle or if the Vehicle have been stolen, seized or lost or of anything else which may affect our ownership of the Vehicle or of any change in your address;
  7. permit us or our representatives to inspect and test the condition of the Vehicle at reasonable times and ensure access to the Vehicle for these purposes. We have no duty to inspect the Vehicle and we will not be liable for anything an inspection reveals or should have revealed;
  8. ensure no other person has any rights in the Vehicle as a result of anything you do such as a right to recover the Vehicle or a right to sell the Vehicle;
  9. not sell, pledge, charge, assign, sub-let or otherwise dispose of the Vehicle or attempt to do so;
  10. not interfere or allow interference with any name, nameplate, identification number, trade mark or other identification mark on the Vehicle. If changes are made and the Vehicle is to be returned for any reason you must, at your expense, restore any name, nameplate, identification number, trade mark or other identification mark on the Vehicle to its original condition before the Vehicle is returned;
  11. obtain any licence, permit or other consent or permission(s) required for the Vehicle at your expense;
  12. pay all licence fees, duties, charges, taxes and other amounts payable for the Vehicle or its use and all rent, rates, taxes and other amounts payable for any premises where the Vehicle is located on time;
  13. take or send the Vehicle outside the United Kingdom without our prior written consent. You may only take the Vehicle outside the UK without our consent if you take the Vehicle to any other EU country once a year for up to 28 days provided you have AA five-star insurance cover or the equivalent;
  14. not use the Vehicle, or allow anyone else to use the Vehicle, in a way which is against the law; and
  15. pay in respect of any claims made against us and all damages, costs and expenses we have to pay as a result of a claim by a third party due to the state, condition or use of the Vehicle.

6. Insurance

  1. You must obtain and pay for insurance of the Vehicle for its full replacement value. This insurance must be comprehensive, have an excess that is typical in the market and insure against third party risks. You must tell the insurer that the Vehicle is subject to a hire purchase agreement arranged through Zopa and, if requested by us, you must show evidence of the insurance and your payment of premiums. If we ask you to, you must make any necessary claim under your insurance policy and you must not, without our previous consent in writing, come to an agreement for any claim made.
  2. Where the Vehicle is damaged and the insurers think the damage can be repaired, you must use any money from the insurer to repair the damage.
  3. If the Vehicle is lost, stolen, destroyed or damaged and the insurer tells you it cannot be repaired (a "Total Loss") you must tell us immediately and transfer all your rights under the insurance policy and you must arrange for prompt payment of any insurance money to us.
  4. If the Vehicle is a Total Loss and the insurer pays out on a total loss basis, then all your remaining Repayments under this Loan Contract will become due and you must pay this amount to us. We will use the insurance money to reduce the amount you owe us as if it was an early settlement (in part or in full) by you.
  5. If the insurance money received by us is less than the balance of Repayments you owe you must pay us the shortfall.

7. Defects and other problems with the Vehicle

  1. We, Zopa and our agents are not responsible for any direct or indirect loss, costs, damage or loss of profit that you or others suffer as the result of the condition or functioning of the Vehicle.
  2. You acknowledge that the Vehicle is already in your possession and that you are selling the Vehicle to the Lenders in order for the Lenders to be able to hire it back to you. You are therefore best placed to know and understand its characteristics, current state and whether it is defective in any way. You also acknowledge that neither we nor, if applicable, the other Lender(s) are acting in the course of a business.
  3. Consequently, you agree that:
    1. we do not give you any assurance (whether by way of warranty, condition or otherwise) regarding the quality, fitness for purpose or characteristics of the Vehicle – and any terms to that effect that might be implied by law are hereby excluded; and
    2. we will not be liable to you or owe you any remedy in respect of any defects in the Vehicle.
  4. This applies both in respect of the period during which the Vehicle is hired to you and upon your purchase of the Vehicle (if you choose to purchase it).
  5. In any case, you may have remedies (either under the express terms of your Existing Finance Agreement or under consumer rights legislation) against the Existing Lender or the Vehicle manufacturer in respect of any defects in the Vehicle. If you want to seek any remedy in respect of the defect, you must always pursue the remedies against the Existing Lender or the manufacturer in the first instance. You must inform us if you do this and let us know whether you achieve any remedy and, if so, what that remedy consists of.
  6. Zopa is not party to the Loan Contract with you and therefore will not have any liability in connection with any defects in the Vehicle or otherwise in respect of the hiring or sale of the Vehicle to you.
  7. We do not exclude liability for death or personal injury resulting from our negligence.

8. Missing Payments

  1. Missing payments could have severe consequences, including repossession of the Vehicle, commencement of legal proceedings and an adverse report on your credit history, which may make obtaining credit more difficult.
  2. If you are worried about being able to pay the amounts due under this Loan Contract please contact Zopa as they may be able to help.
    1. If you are late in making payment, and we ask the Collections Agency to help recover payment, that agency may charge you an administration fee for the work it does in attempting to collect your Repayments ("Late Payment Fee"). The Late Payment Fee will be 22.5% of the amount that is overdue (which amount shall include any interest that accrues on overdue amounts) except where a field agent is required as part of the collections process, in which case the Late Payment Fee will be 40% of the amount overdue. The Collections Agency reserves the right to change the percentage charged (over which neither we nor Zopa has any control).
    2. Other fees or charges that may be charged by Zopa or the Collections Agency in relation to the Loan Contract and added to the balance outstanding are:
      1. Tracing charges (for finding you if you cannot be contacted by Zopa or the Collections Agency) - £25
      2. Charges for document retrieval and copying up to 20 pages (other than as a result of statutory entitlement, for which there may still be a charge as provided by statute) - £35
      3. Debt counselling service (if you fall into arrears and Zopa or the Collections Agency cannot contact you) - £80
      4. Litigation costs and expenses, including legal fees and expenses, to cover litigation recovering outstanding arrears, in which case you will be advised of the cost if such action proves necessary
      5. if we demand the return of the Vehicle under clause 8.4 below, all costs incurred by us in repossessing, storing, insuring and selling the Vehicle, delivering it to a buyer and any sales commission paid by us.
    3. You will be notified by Zopa or the Collections Agency if these charges change in nature or amount and of the reason for the change. If you do not agree to the change you may settle your Loan Contract early by following the instructions at clause 13 or 14.
  3. You should be aware that if we take you to court and get a judgment against you requiring you to pay us the money you owe us under the Loan Contract, you may have to pay us both the amount of the judgement and the interest under the Loan Contract on all the sums owed by you at the date of the judgment until you have paid these in full. This means that even if you pay off the whole amount of the judgement, you may still have a further sum to pay.
  4. We may end the Loan Contract and demand that you return the Vehicle on or after the date in any notice of demand that we give to you if:
    1. you miss a payment and still have not paid after the time period we give in the notice we send you about the missed payment,
    2. you have failed to comply with your other obligations in this Loan Contract and, if capable of being remedied, you have not remedied this within the time period given in the notice we send you about the failure,
    3. you become bankrupt or make other arrangement(s) between you and your creditor(s) because you cannot repay your debts,
    4. you die (we would ask your estate to make the Repayment), or
    5. you are convicted of an offence involving dishonesty or you have provided incorrect information when applying for this Loan Contract.
  5. If you have paid to us and the Existing Lender an amount equal to one-third of the total amount payable shown in the Existing Finance Agreement (not including the amount paid to settle the Existing Loan Agreement in full), we may only take possession of the Vehicle if we obtain a court order (including in the circumstances above).
  6. Before making any demand, we will take all the steps that we are required to take by law for your protection.

9. Statement of Account

  1. You have the right to receive, on request, and free of charge, at any time throughout the duration of the Loan Contract, a statement in the form of a table showing:
    1. the details of each Repayment owing under the Loan Contract;
    2. the date on which each Repayment is due, the amount and any conditions relating to the payment of the Repayment;
    3. a breakdown of each Repayment showing how much comprises:
      1. capital Repayment,
      2. interest payment, and,
      3. if applicable, any other charges.

10. Other costs that are not paid via Zopa, the Lenders, or imposed by them

You are responsible for any telecommunications charges, digital television subscription or other charges for the time you spend accessing the Lending Platform via the Internet or any wireless, television or other relevant network.

11. Ending the Loan Contract

  1. You may end the Loan Contract in a number of ways:
    1. by cancelling the Loan Contract within fourteen days of the date on which it starts – see clause 12
    2. by repaying the Credit early and keeping the Vehicle – see clause 13
    3. by returning the Vehicle and paying an amount to us by way of compensation – see clause 14
  2. We may end the Loan Contract in accordance with clause 8.
  3. If you want to end the Loan Contract for any reason then you must do so for all of the loan contracts referred to in the Loan Contract Summary, and you must do so in the same way (for example, if you cancel the Loan Contract under clause 12 then you must cancel all of the loan contracts under their equivalent cancellation provisions). Similarly, we may only end the Loan Contract if all other Lenders end the Loan Contract at the same time.

12. Cancellation

  1. Once you have signed the Loan Contract, you will have for FOURTEEN calendar days (starting the day on which each of your Confirmed Bid has been matched with each Lender’s Market Offer) a right to cancel the Loan Contract, orally or in writing in accordance with clause 12.2, without giving a reason.
  2. If you wish to do this you must:
    1. can send a WRITTEN notice of cancellation to carfinance@zopa.com or cancel ORALLY by calling 0207 291 9042 (please be aware conversations may be recorded for evidentiary purposes).
    2. repay to us any credit already provided under this Loan Contract (including interest charged, but not the Borrowing Fee);
    3. ensure the repayable amount is repaid to the Zopa Customers’ Account within 30 (THIRTY) days of sending your written notice of cancellation or cancelling orally.
  3. Should you fail to do any of these things, your cancellation will not be effective and this Loan Contract will continue.
  4. Once we have received the amount repayable under clause 12.2, ownership of the Vehicle will automatically transfer to you and this Loan Contract will end.

13. Repaying the Credit early

  1. You may at any time repay part of your Credit early, or settle your Loan Contract early in whole and end the Loan Contract, by following the instructions in My Zopa or as notified by the Collection Agency and repaying the relevant amount.
  2. We will tell you how much you have to pay in order to settle your Loan Contract in full and take ownership of the Vehicle. Once you have paid the relevant amount, ownership of the Vehicle will transfer to you and this Loan Contract will end.

14. Ending the Loan Contract and returning the Vehicle

  1. As an alternative to your right to settle your Loan Contract in full and take ownership of the Vehicle, you may end this Loan Contract without taking ownership of the Vehicle.
  2. If you wish to do this you must:
    1. for Vehicle Refinancing, pay us an amount which means that you will have paid to us and the Existing Lender an amount equal to half of the total amount payable shown in the Existing Finance Agreement (not including the amount paid to settle the Existing Loan Agreement in full) less the total amount of the Repayments paid or due to us up to that time; or
    2. for Balloon Financing, pay us an amount equal to half of the Total Amount Payable shown on the Loan Contract less the total amount of the Repayments paid or due to us up to that time; and
    3. send a WRITTEN notice of cancellation to carfinance@zopa.com or cancel ORALLY by calling 0207 291 9042 (please be aware conversations may be recorded for evidentiary purposes)
    4. pay us the amounts set out in clause 15 below; and
    5. return the Vehicle to us (including all keys, remote devices and alarm/immobilisation codes) and give us all licence certificates and other documents or items relating to the Vehicle (including V5C Registration Document, MOT certificate and service record).

15. Additional Payments by customer on termination

  1. If you or we terminate this Loan Contract for any reason, you must pay us all arrears of Repayments, interest and other sums you owe us at the date of termination. We will tell you what this amount is after we have reduced it as required by law.
  2. If you or we terminate this Loan Contract for any reason and ownership of the Vehicle is not transferring to you, you must pay us the cost of all repairs required to put the Vehicle into good serviceable repair and condition (or, if we choose, pay us the reduction in its value).
  3. If this Loan Contract terminates in any circumstances other than you purchasing the Vehicle from us, upon termination you will automatically transfer (to the extent that you have the right to do so) to Zopa the benefit of any ongoing manufacturer's warranties that relate to the Vehicle as well as any ongoing warranties or other rights that you are entitled to under the Existing Finance Agreement. Zopa will have the right to enforce this clause for the purposes of the Contracts (Rights of Third Parties) Act 1999.

16. Transfer of Loan Contracts

  1. We may freely transfer (by way of a novation) all of our future rights, title, interest and obligations (including the obligation to hire and, if applicable, sell the Vehicle to you) to:
    1. any third party who assumes our share of the Credit, and who consequently acquires joint ownership of the Vehicle, through the Lending Platform (or any trading exchange or in any other manner approved by Zopa for that purpose); or
    2. Zopa if we terminate this Loan Contract in accordance with clause 8.
    3. The Zopa Principles set out more details of how this operates. You hereby consent in advance to any such transfer.
  2. Your rights and obligations under a Loan Contract that has been transferred shall not be adversely affected in any way whatsoever.
  3. You shall not be entitled to assign or transfer any Loan Contract to another person.

17. Law applicable to the conclusion of a distance contract

The laws of the United Kingdom (and English law in particular) are the basis for the establishment of relations with you prior to the conclusion of the Loan Contract.

18. Law applicable to the Loan Contract

The Loan Contract is governed by and construed in accordance with English law; and the parties submit to the non-exclusive jurisdiction of the English courts.

19. Language of this document, the Loan Contract, and Contractual Communications

The Loan Contract and all related documentation are in the English language; and the Lenders undertake to communicate with you in English during the duration of the Loan Contract.

20. Other legal terms

  1. Each of the clauses of the Loan Contract operates separately. If any court or relevant authority decides that any of them are unlawful, the remaining clauses will remain in full force and effect.
  2. If either party does not strictly apply its rights under the Loan Contract at any time, that will not prevent that party from doing so later.
  3. Any notices given to you in relation to any Loan Contract will be put in your My Zopa, in which case you will also receive by email to your email address a prompt to refer to your My Zopa, or may be sent by post to your last known postal address.
  4. Please contact Zopa if you think there is a mistake with any records relating to your Loan Contract. The process is explained at clause 13.
  5. You confirm that you have a regular source of income, do not expect this to change over the lifetime of the Loan Contract and have no reason to think that you will be unable to make the Repayments required.

21. Complaints and complaints handling

  1. If you want to make a complaint about the Loan Contract or Zopa you can email contactus@zopa.com with brief details of your complaint and your account reference. Zopa will acknowledge your complaint within one business day. Zopa will then investigate and send you an initial response. This should take no longer than three business days.
  2. We will keep you informed of our investigations and will aim to resolve the matter within four weeks of receiving your complaint.
  3. If within eight weeks after receiving a complaint we are still not able to resolve the matter, we will send you a final response. If you don't agree with our final response you may refer your complaint to the Financial Ombudsman Service, who can be contacted by telephone on 0800 023 4567 or at www.financial-ombudsman.org.uk. You also have the right to make a complaint directly to the Financial Ombudsman Service.
  4. If you wish to make a complaint about Zopa Repayment Protection (which we no longer sell and have not sold since April 2008), you should follow the complaints procedure outlined in the policy documentation. If you complain to us about the policy, we will refer you to the product provider.

22. List of Lenders

You can view a list of your Lenders, including how much each of them has lent you and at what rate, will be available in the "Borrowing" section of your "My Zopa". You can access your MyZopa by logging in securely to the Lending Platform.

23. Your Personal Data

We will process your personal data in connection with the performance of our rights and obligations under this Agreement and our regulatory obligations, consistent with Principle 11 of the Zopa Principles. We may receive personal data directly from you, generate personal data about you and/or receive personal data about you from third parties (such as Zopa, the Collections Agency or parties engaged in the same or similar business to that of the Collections Agency). We may disclose your personal data to the Collections Agency and the bodies referred to under "Supervisory Authority" above and will only disclose your personal data to locations outside the European Economic Area in circumstances where there is adequate protection for the data or otherwise with your prior consent. You should contact us in writing at our address on page 1 of the Loan Contract to exercise your rights to access and rectify personal data we hold about you. Personal data means data which relate to you and from which you can be identified, or from which you can be identified in combination with other information which is, or is likely come into, our possession.

24. Defined Terms

Certain words and phrases are defined in the Loan Contract Summary. In addition, the following words and phrases have the following meanings:

"Amount of Credit"
means the amount that you are borrowing as set out in the Loan Contract Summary, which is the cost of redeeming your Existing Finance Arrangement and is paid in accordance with clause 3.

"Balloon", "Balloon Payment"
means the final repayment on an Existing Finance Agreement, which is required to be paid in order for ownership to transfer from the Existing Lender to you;

"Balloon Financing"
means a loan taken out to pay for Balloon Payment on a Personal Contract Purchase or Hire Purchase agreement;

"Borrowing Fee"
means the fee charged by Zopa for enabling you to borrow on the Lending Platform, as specified in your personalised quote and the Loan Contract Summary, and shall include an amount estimated by Zopa to reflect the potential for a Default, based on the Credit Rating applicable to your Loan Contract and Zopa’s assessment of whether there are sufficient funds in the Zopa Safeguard Trust, where applicable;

"Collections Agency"
means Credit Resource Solutions Limited of Rosemount House, Rosemount Estate, Huddersfield Road, Elland, West Yorkshire HX5 0EE or such other duly authorised collections agency as may be appointed from time to time;

"Confirmed Bid"
means a bid which a potential Borrower posts on the Lending Platform confirming an Indicative Bid;

"Credit Rating"
means a credit rating supplied by Equifax plc or such other credit reference agency that Zopa may use from time to time in relation to the Borrower for use in connection with the Lending Platform;

"Default"
means the failure of the Borrower to pay the full amount of four Repayments then due and payable in relation to the Loan Contract;

"Existing Finance Agreements"
means the existing hire purchase (which includes personal contract purchase agreements) or conditional sale agreements that you have in place with the Existing Lender;

"Existing Lender"
means the finance provider of the Existing Finance Agreement;

"Lenders"
means each lender under the Loan Contracts set out in the Loan Contract Summary;

"Lending Platform"
means the internet marketplace which Zopa operates at www.zopa.com for the purpose of matching Market Offers and Confirmed Bids, and includes any related mobile application or other means of accessing that marketplace which Zopa operates from time to time;

"Loan Conditions"
means these terms and conditions;

"Loan Contract"
means the contract, incorporating these Loan Conditions, for the provision of credit to the Borrower by way of a hire purchase arrangement for the Vehicle;

"Loan Contract Summary"
means the summary of all the loan contracts entered into by the Borrower at or about the same time (where more than one loan contract is entered into) and for the purpose of refinancing the Vehicle;

"Loan Servicing Fee"
has the meaning given in the Zopa Principles;

"Market Offer"
means an offer to provide credit to a Borrower, which a potential Lender posts on the Lending Platform;

"My Zopa"
means the part(s) of the Lending Platform which can only be accessed by a Zopa Customer, using his or her own Passcodes;

"Nominated Account"
means the current account you have with a UK bank from which you authorise Zopa to collect Repayments under the direct debiting scheme, and/or to which Zopa will make any payments due to you, as the case may be;

"Option to Purchase Fee"
means an optional fee specified in your Loan Contract which will be due if you elect to purchase the vehicle;

"Passcodes"
means your unique email address, password, answers to security questions, which you specify under Principle 2.4 of the Zopa Principles when you register with Zopa to use the Lending Platform;

"Vehicle"
means the vehicle identified in the Loan Contract Summary;

"Vehicle Refinancing"
means a loan taken out to refinance an Existing Finance Agreement at any point during the term;

"we"
means the individual Lender who is advancing the credit pursuant to this Loan Contract (and "us" and "our" will be construed accordingly)

"Zopa"
means Zopa Limited, whose registered office is 1st Floor, Cottons Centre, Tooley Street, London. SE1 2QG. Company Registration Number 05197592. Zopa Limited is also:

  1. the holder of Consumer Credit Licence Number 563134;
  2. authorised and registered by the Financial Conduct Authority, and entered on the Financial Services Register under firm registration number 563134;
  3. registered with the Office of the Information Commissioner (registration number Z879078)
  4. a member of CIFAS;

"Zopa Customer"
means an individual who Zopa has registered under Principle 2.5 of the Zopa Principles or a potential Borrower to whom Zopa has issued a Personalised Quote has ;

"Zopa Customers' Account"
means any segregated bank account that Zopa maintains with Royal Bank of Scotland (or such other UK bank as Zopa may choose from time to time) for the sole purpose of holding funds to which Zopa Customers are beneficially entitled in accordance with the Zopa Principles and/or any Loan Contract;

"Zopa Principles"
means the Zopa Principles you agreed when registering to use the Lending Platform, as amended from time to time, a copy of which is available on the Lending Platform;

"Zopa Safeguard Trust"
means the trust, constituted by the payment of funds contributed by Borrowers as part of the Borrowing Fee, where their Loan Contracts are covered by the trust, which funds are held on trust by P2PS Limited for Lenders in accordance with the Zopa Principles;

"Zopa Sites"
means the Lending Platform, the Zopa web site(s), blog and discussion board.

We're here to help

Monday to Thursday (9am to 5:30pm), and Friday (9am to 5pm).

Email: contactus@zopa.com

Telephone: 020 7580 6060 for loans

Telephone: 020 7291 8331 for investments

We can't take applications over the phone. UK residents only. Calls may be monitored or recorded.