Banks under threat as Zopa becomes Big with Consumers

Venolia, Jon
February 2005
Credit Control;2005, Vol. 26 Issue 2, p56
Trade Publication
This article reports that banks are under threat as Zone of Possible Agreement (Zopa) becomes big with consumers. An individual can sign up online to Zopa as either a borrower or a lender. On applying, a borrower's credit rating is checked with Equifax, whilst anti-fraud checks are completed by Zopa itself. The borrower is then placed into one of two markets depending on their credit rating, one for consumers with a medium to good credit rating and one for those with a very good rating, and can then stipulate the rate at which they are prepared to borrow, the amount of the loan and the repayment period. Each lender picks the market they wish to lend in, depending on their the rate at which they are prepared to lend and their attitude to risk.


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