What happens in the event of a borrowers death?
In the event of the death of a borrower the loan contract still stands. Once Zopa are informed and sent a certified copy of the death certificate we would give the executor all the details of the loan and a settlement figure. The estate can either pay off the outstanding amount or set up a new direct debit to their own bank account to continue the monthly payments. Where funds were paid to a borrower into a joint account, any outstanding sums become the liability of the borrower’s estate and are immediately repayable out of the estate assets as outlined and agreed by the borrower in the Zopa Principles and Loan Conditions. The borrower’s estate will not become a Zopa member in the ordinary course and further funds may not be borrowed by the estate of the deceased. The debt remains part of the estate and is subject to our existing contractual obligations. If no payments were received then the debt would be referred to our Collections Agency in the usual way – though obviously with tact
