Post by aju on Jun 28, 2019 22:36:34 GMT
In this weeks lending email zopa has suggested that secure car financing will be available soon. I wonder if we will get an option to choose this stuff as in the latest update to the zopa principles states ...
I know people who do this and it always seems that the value of the car rarely covers the full loan remaining so for me there is a potential conflict of my interests as a lender in this type of loan.
There was no mention that this might be an optional loan type I could flag off.
Anyone else got any thoughts on this new development, assuming it is new of course.
8. Vehicle finance loans
All of our vehicle finance loans are made under an agreement between the borrower and Zopa Bank which will purchase the vehicle and transfer the benefit of all or part of the agreement to you. You'll then beneficially own the loan and related rights or, if there is more than one investor, a share that's proportionate to the amount you lent relative to the other investors. Zopa Bank will be the registered owner on the CAP HPI register and you mustn't try to transfer or sell your share except on the secondary market in accordance with these principles.
Note: Consumer protections
Vehicle finance loan customers benefit from certain protections under consumer credit law. Zopa Bank will be responsible for ensuring that these legal protections are complied with.
These include some specific protections that apply to vehicle finance loans:
Borrowers have a right to end their agreement early if they want to hand back the vehicle. vehicle. If they have already paid 50% of the total amount payable under the agreement, we cannot ask them to pay any more unless they've failed to take reasonable care of the vehicle.
Unless and until the borrower pays the final payment due under the agreement, we can take the vehicle back from the borrower and sell it if the borrower doesn’t pay. Once the borrower has repaid 1/3 of the total amount payable, though, we can only do this if we get a court order.
If the vehicle finance loan customer exercises these rights, the amount we recover (having taken into account late payments and any damage to the vehicle other than reasonable wear and tear) may be less than is needed to repay the amount that was lent.
All of our vehicle finance loans are made under an agreement between the borrower and Zopa Bank which will purchase the vehicle and transfer the benefit of all or part of the agreement to you. You'll then beneficially own the loan and related rights or, if there is more than one investor, a share that's proportionate to the amount you lent relative to the other investors. Zopa Bank will be the registered owner on the CAP HPI register and you mustn't try to transfer or sell your share except on the secondary market in accordance with these principles.
Note: Consumer protections
Vehicle finance loan customers benefit from certain protections under consumer credit law. Zopa Bank will be responsible for ensuring that these legal protections are complied with.
These include some specific protections that apply to vehicle finance loans:
Borrowers have a right to end their agreement early if they want to hand back the vehicle. vehicle. If they have already paid 50% of the total amount payable under the agreement, we cannot ask them to pay any more unless they've failed to take reasonable care of the vehicle.
Unless and until the borrower pays the final payment due under the agreement, we can take the vehicle back from the borrower and sell it if the borrower doesn’t pay. Once the borrower has repaid 1/3 of the total amount payable, though, we can only do this if we get a court order.
If the vehicle finance loan customer exercises these rights, the amount we recover (having taken into account late payments and any damage to the vehicle other than reasonable wear and tear) may be less than is needed to repay the amount that was lent.
There was no mention that this might be an optional loan type I could flag off.
Anyone else got any thoughts on this new development, assuming it is new of course.
