We have made a number of arrangements to take care of lenders' funds in the unlikely event that Zopa goes out of business.
Zopa is not involved in the contracts with your borrowers, so they remain legally binding and repayments will continue to be made.
Any money you transfer to Zopa is held in a segregated bank account to which neither Zopa nor its creditors have any claim.
We have contractually agreed with our collections agency that they will manage any collections activity for the lifetime of any loans outstanding. Each month we set aside enough money to cover these costs in a segregated account.
Personally I don't consider those statements to be a strong enough guarantee - as Mr Bannatyne would say 'I'm oot!'.
Personally me and Mrs Tourerfogey have found good old fashioned Premium Bonds to be a good investment whilst interest rates are so low - our joint winnings over the past 18 months are much more than the interest we would have received over the same period although of course we may just have been lucky