aju
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Post by aju on Nov 11, 2019 18:03:01 GMT
I think that the fee should cover chasing delinquent debts, but on a loan by loan basis it will be insufficient to chase that loan, so it would only be covered if the fees from on time borrowers include contributions to bad debt chasing. however this is exactly my point, Zopa are doing less for their money.
your point does raise another point. Partial payments are credited to interest until interest is paid up in full. It would be interesting to know whether any amounts were taken by Zopa as their fee when interest is NOT paid in full and, if so, how the amounts paid are allocated. Any ideas? in the distant past when fees were levied on lenders, they did NOT charge on any loans that were in arrears.
It probably is indicative that Zopa are not the best in class of debt collection and yes selling off some dud loans probably makes things a bit tidier for Zopa. However I am for the idea myself. We get some money on loans where most platforms will return you nothing and Zopa's borrowers know that the site is not an easy touch and debts will get chased hard. As another poster said, for a borrower just knowing that your debt will be sold on to the highest bidder, who will definitely chase the debts hard, might be enough to get some reluctant borrowers to cough up. Also may prevent some dud borrowers from applying in the first place. The P2P industry should be somewhat pragmatic here. Some customers will decide to end their investments on a platform and it would probably be in the interest of everybody if the affairs on the customers account were settled after a year or two rather than expecting the customer to keep up with a trickle of pennies being recovered for potentially decades. It doesn't matter if they do cough up as that all goes to the debt collectors who buy the loans not us. Although I have not had the Capital payment as yet I have managed to see which loans have settled since last month. Interestingly out of the 33 loans that I can see have been marked "Settled" in the last month 9 of them have made a payment in the last month presumably when the letter dropped onto their doormat. Most of them had not paid anything for over 6 months or so Of the 9 that paid something last month 2 that I checked only paid some interest, another was in an active arrangement and was paying reduced interest one month and reduced capital next month - same dates they seemed to miss sep and then paid the last one last month before it was marked settled still owing >50% but seeming paying albeit very slowly. As I say I am still waiting for the "Capital Adjustment payment" for the debt sale, I looked this morning but still nothing had come much slower than previous ones.
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Post by erniec on Nov 11, 2019 18:06:59 GMT
Anyone find it strange that the email describing this debt sale was written in two tenses?
“We’ve just completed a debt sale.“
”We will be selling a group of defaulted loans to a specialist collections company.”
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aju
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Post by aju on Nov 11, 2019 18:11:02 GMT
Anyone find it strange that the email describing this debt sale was written in two tenses? “We’ve just completed a debt sale.“ ”We will be selling a group of defaulted loans to a specialist collections company.” Yeah at first I thought it may have already happened and then I thought it will happen soon when it did not follow same timescale as that in June this year. Edit: still no payment this morning (Tues 12th Nov) so I'm starting to think they have not actually sold it just earmarked the loans to be sold. One assumes they agreed the loans to sell but are perhaps still waiting on the price/funds from the purchaser. They of course then have to divi this up across all the lenders.
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Post by erniec on Nov 13, 2019 10:43:25 GMT
Anyone find it strange that the email describing this debt sale was written in two tenses? “We’ve just completed a debt sale.“ ”We will be selling a group of defaulted loans to a specialist collections company.” A response from an email I sent: Thanks for your email. I am sorry for the confusing email I will pass on your feedback. I can confirm the loan sale has taken place and loans have been transferred and we have received payment for the loans. We are just arranging payments and update to investors' accounts which should be completed in the next 2 days.
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aju
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Post by aju on Nov 13, 2019 11:19:21 GMT
Anyone find it strange that the email describing this debt sale was written in two tenses? “We’ve just completed a debt sale.“ ”We will be selling a group of defaulted loans to a specialist collections company.” A response from an email I sent: Thanks for your email. I am sorry for the confusing email I will pass on your feedback. I can confirm the loan sale has taken place and loans have been transferred and we have received payment for the loans. We are just arranging payments and update to investors' accounts which should be completed in the next 2 days. That saves me one email thx erniec just need to collate our accounts to see what's changed for my own records. It confirms that the recently "settled" loans I am seeing in loanbook data taken since the email are part of the sale then. We both have quite a few especially in the ISA sides. Usually I request further break down of what payments each loan has received which previously they have provided. All that's assuming they do not assign the final payments to each loan in the statements data we can see and use a single "capital adjustment payment" for Invest and ISA separately.
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Post by fuzzyiceberg on Nov 13, 2019 11:21:54 GMT
The fact remains that Zopa have unilaterally changed the terms of business to our cost. It used to be that the 1% fee included them bearing the costs of recovery of defaulted debts. Now that cost is being incurred by the company who buys the debts and so they pay us less than the amount actually recoverable (plus they keep their profit of course, so a double whammy). Don't kid yourselves - Zopa is doing this for its benefit, not ours. We are the saps taking the hit.
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aju
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Post by aju on Nov 13, 2019 11:28:33 GMT
The fact remains that Zopa have unilaterally changed the terms of business to our cost. It used to be that the 1% fee included them bearing the costs of recovery of defaulted debts. Now that cost is being incurred by the company who buys the debts and so they pay us less than the amount actually recoverable (plus they keep their profit of course, so a double whammy). Don't kid yourselves - Zopa is doing this for its benefit, not ours. We are the saps taking the hit. Excellent point fuzzyiceberg , well made too. Some of us don't pay the whole fee if at all but Mrs Aju does and she is hopping mad I've had to pacify her since I told her this ... I'll try not to use up too much of Zopa's profit asking them to clarify the payments against each of our loans. Its not a simple percentage on each loan either if the previous debt sales are to go by.
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Post by erniec on Nov 15, 2019 13:03:28 GMT
Anyone find it strange that the email describing this debt sale was written in two tenses? “We’ve just completed a debt sale.“ ”We will be selling a group of defaulted loans to a specialist collections company.” A response from an email I sent: Thanks for your email. I am sorry for the confusing email I will pass on your feedback. I can confirm the loan sale has taken place and loans have been transferred and we have received payment for the loans. We are just arranging payments and update to investors' accounts which should be completed in the next 2 days. Well, two days have passed and I’ve seen no additional funds. Perhaps I’m not due any or maybe Zopa are earning interest on my money? I take it nobody else has seen anything?
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Post by Deleted on Nov 15, 2019 14:30:02 GMT
A response from an email I sent: Thanks for your email. I am sorry for the confusing email I will pass on your feedback. I can confirm the loan sale has taken place and loans have been transferred and we have received payment for the loans. We are just arranging payments and update to investors' accounts which should be completed in the next 2 days. Well, two days have passed and I’ve seen no additional funds. Perhaps I’m not due any or maybe Zopa are earning interest on my money? I take it nobody else has seen anything? I've not had any money yet, but quite a few of my defaults are included so I'm definitely due some.
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aju
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Post by aju on Nov 15, 2019 18:23:46 GMT
A response from an email I sent: Thanks for your email. I am sorry for the confusing email I will pass on your feedback. I can confirm the loan sale has taken place and loans have been transferred and we have received payment for the loans. We are just arranging payments and update to investors' accounts which should be completed in the next 2 days. Well, two days have passed and I’ve seen no additional funds. Perhaps I’m not due any or maybe Zopa are earning interest on my money? I take it nobody else has seen anything? Zopa better not be getting interest on it that they do not pass on to us. I've just checked myself and Mrs Aju and we have received nothing for the loans that are showing settled.
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Post by erniec on Nov 18, 2019 12:19:57 GMT
The Capital Adjustment Credits turned up on our accounts today between 11:30 and 12. Not as generous as the previous June sale but acceptable.
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Post by Deleted on Nov 18, 2019 13:45:17 GMT
Have received mine too. Payment was approx 17% of the defaulted loans outstanding.
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aju
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Post by aju on Nov 18, 2019 14:19:01 GMT
The Capital Adjustment Credits turned up on our accounts today between 11:30 and 12. Not as generous as the previous June sale but acceptable. Likewise, as you say not as generous as previous sale in June - to be fair though we do have less loans in the Invest side probably as we are relending Invest returns into ISA from there too. I will leave it a while until it registers in the online statement info - I keep records of this too - but the real task is to reference this against the settled loans to see how much was lost in crystallization. as the loans were already in default before being settled they have been returning very small amounts. Curiously though I already know of a loan that was way behind on its commitment but it was paying interest and capital each every other months right up to being marked settled. For me that was not a borrower that was spooked by the debt sale notification - as others seemed to be - so I will be interested to see why Zopa took the decision to sell this loan on. ( A cynical part of me wonders why zopa takes these decisions in some cases and wonder if settled loans are not part of default stats they reveal overall.)
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aju
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Post by aju on Nov 18, 2019 14:22:44 GMT
Have received mine too. Payment was approx 17% of the defaulted loans outstanding. Do you mean 17% these latest "Settled" ones that are crystalised defaults.
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Post by Deleted on Nov 18, 2019 14:52:24 GMT
Have received mine too. Payment was approx 17% of the defaulted loans outstanding. Do you mean 17% these latest "Settled" ones that are crystalised defaults. I mean that I received a payment of around 17% of the outstanding money owed to me from the defaulted loans that are now 'settled' ie for every £10 of loan that was settled in this sale, I received £1.70. I didn't check the % for the last sale.
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