Zopa Affordability Complaint - Nearly there...

allystar

Just wanted to share some news..

I raised an affordability complaint with Zopa for a £20k loan in December.  Zopa rejected my complaint and also my appeal.

So, I raised the complaint with the FOS in February.  Having submitted evidence (bank statements etc.) I seem to be nearing the finish line.  The FOS are viewing in my favour and Zopa have 2 weeks to respond - fingers crossed!

While i only took the loan out in July 2024, they front load the interest, so this would wipe around £10k from what they say I owe - which is a huge difference!

I was keen to post to share with others...it is most definitely worth the time taken to submit the complaint!!

Winkflower

Thankyou so much for your post which is inspiring - did you use a template ? 
Did you email or send a letter ? Did you use recorded post? Thankyou !
Good luck with your claim 
Wx

allystar

Hi, I used the template letter from the debt camel website and just emailed it to a few creditors. All rejected, so I went to FOS for each of them. The other complaints are acknowledged but yet to be assigned. It’s a slow process.

Rob5342

It's good to hear how people have got on. Hopefully they'll agree with the investigator, all of mine creditors did when the investigator found in my favour. If it gets passed to an Ombudsman then their decision is published on their website so i think they are keen to avoid that sometimes. It's certainly a slow process but there is little actual work involved and if you persist you can get some very good results. Lenders often drsg their heels when it comes to accepting decisions and sorting out the redress, so don't be surprised if it takes longer then the timescale the FOS give them. 

lordmountararat

They didn't front load your interest. Front loading has been illegal for many years. Borrowers often misunderstand how interest is calculated and the reason why early repayments are nearly all interest, with substantial inroads to the the principal only apparent towards the latter months of the loan.

allystar

I agree, but when I look up n my account it says £28k owing…loan was £20k

DeterminedtoChange86

allystar said:

I agree, but when I look up n my account it says £28k owing…loan was £20k

This is confusing me a bit with my Zopa loan too. I borrowed 23500. My Zopa portal says remaining is 29000. I guess my question is if they defaulted today and froze the interest would it be the remaining balance from the 23500 that I would owe or would they look to reclaim the 29000?

I’ve been working with the 29000 figure for my SOA. 

ManyWays

I think it varies by lender what they do with a loan in a DMP, I dont know if anyone here has been keeping notes? Of course a simple option is an affordability complaint, as that would remove all interest if its won, including the amounts already charged.

sourcrates

Its normally capital borrowed, plus interest added at a daily rate, over whatever period of time, gives you a total figure of what you would pay if the loan reaches term.

If you were to default on payments, the full amount, capital plus interest, added until the date the loan would have reached term, becomes payable.

Then there may also be late charges/missed payment charges added etc etc.

allystar

Quick update (hoping this is useful to others in future)…

Zopa have agreed with the FOS view…so a good result, considering Zopa originally rejected my complaint and my appeal!

Fingers crossed for my other complaints!!

ManyWays

These sort of updates are very encouraging for other people