Zopa charges borrowers a fee of £118.50 and lenders a 1% annual service fee. And that's it. There are no hidden charges, no additional costs, no sneaky clauses.

What Zopa say is this

Zopa blog - Banning PPI sales at credit point of sale is good for consumers

Interesting news today from the Competition Commission re PPI sales. We used to sell this product but stopped for 2 reasons:

1) we hardly sold any, probably because we simply made it available, with no real sales effort. That's not to say we didn't describe it properly but we didn't push it, or even worse leave the borrower with the impression it would mean they would be more likely to be granted a loan if they bought it. Sellers are really really not supposed to do this but I question how they get (or should I say used to get) such high conversion rates without doing so;

2) we discovered that the level of claims made by the borrowers under the policies we did sell was tiny, so we didn't consider the policy offered value for money.

ie they used to sell PPI (but not much), which is in fact insurance sold to the borrower, not the lender, but of course in a P2P model should protect the lender, too.

But according to them, they stopped selling it for reasons given.

Where do you get your info re Zopa's revenue sources from? They've moved on their business model a bit, I suspect.

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