marie
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Post by marie on Oct 30, 2019 16:55:32 GMT
Hello! I see so many loans with the status of "settled" against them, a lot more than "default". Is it really as bad as it sounds, are they loans that Zopa have just given up on recovering? Is the outstanding amount just taken off my profits? There are so many mentions of "defaulted" loans, but no mentions of "settled" ones (from Zopa themselves and here on the forum), so I', hoping I'm hoping I'm reading it wrong and that it's not as bad as it looks  Many thanks! |
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Post by Deleted on Oct 30, 2019 17:12:06 GMT
This link gives the official definition help.zopa.com/customer/portal/articles/868010I thought most Settled loans were defaulted loans that had been sold and for which you've received the proceeds of that sale (which might be, say, 10p in the £). |
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aju
Member of DD Central
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Post by aju on Oct 31, 2019 0:26:14 GMT
I took the liberty of transferring the definition to here
for want of simpler definition its where the loan has been finished it's effectively the same as closed except that there is a payment quite a bit lower than the amount owed ("Capital Adjustment" entry in statements data for many loans as part of a Debt sale). I don't know for certain but I think Zopa has decided that the borrower is not worth bothering with in house and has probably sold it on to a debt collector who will have paid for the loans and will then attempt to recover the money owec on the loan. Looking at most of mine the return is something like 1 - 2% of outstanding I seem to remember when it is from a debt sale.
It's something of a double edged sword as a lender in that we will get far less return on the loan/s than we might have if zopa had chased these people internally. The thing is though I suspect Zopa does nto have the resources to concentrate on anything more than simple loan recoveries. Whilst I like this in that I get some money returned back what I don;t like is that zopa takes this decision without consultation from lenders - well none that I've been party to anyway. For me its easy to see why Zopa can do this as I'm not convinced Zopa loses out in this approach us lenders do though. In the most recent tranch myself and Mrs Aju were involved in we had quite large sums effectively crystalised into real losses.
At the end of the day we are not in control of these decisions just receiving sums of money into our account that are not directly related to the loans that were settled. We gathered together the loans that were settled and requested the returned amounts relative tot he settled loans. Zopa provided this and it was easier to see the rate on each loan that was returned.
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aju
Member of DD Central
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Post by aju on Oct 31, 2019 0:51:03 GMT
There is a thread that talks about debt sales here it may have some further details on large sales. Some settled items are one off though and sometimes you may see information in the comments field in the loanbook. The link above is regarding larger sales where by groups of loans are crystalised by a "debt sale" of many loans usually one gets an email notification of these. |
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