|
Post by elljay on Nov 15, 2013 7:31:58 GMT
|
|
JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
|
Post by JamesFrance on Nov 15, 2013 9:43:41 GMT
As a non resident I am excluded from Zopa, so have no experience of how they operate. Just from reading the link, I would think that the Rate Score is designed to push people into adding funds to their account so that they are allocated some loans they would not be included in otherwise. Not too good for those existing users reinvesting repayments, so not adding fairness.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Nov 15, 2013 10:55:39 GMT
Reading through the Zopa forum thread at what people are now saying this scheme does, especially to established lenders recycling their repayments, is eye-opening. talk.zopa.com/topic/8908-faster-and-fairer-lending/I stopped wasting time with Zopa shortly after their introduction of safeguard (with higher rates for lenders as part of the selling point) quickly morphed into much lower rates, with Zopa compelling me to lend (very very slowly) to A* borrowers at around 4.4% (3.4% after their fee) so that Zopa could boast of being the cheapest source of loans on the "best-buy" web-sites. I now withdraw repayments twice a week and invest elsewhere (and have extra bananas). Zopa has become the Tesco/Asda etc of P2P. Whatever they say, most of the supermarkets boast of how low their prices are and achieve that by grinding the farmers into the ground by paying as little as they can get away with. Zopa does the same with lenders now. Advertise lowest rates for borrowers, then service them by paying a dictated lowest possible rate to the lenders. (And I notice that Zopa on their website compares their lenders' rates with bank savings rates rather than other P2P lenders' rates. Isn't regulation going to stop that? Some are saying that established lenders on Zopa (Long) may end up -0.4% on the "projected" 4.8% (currently) rate, so that newer lenders get around + 0.4% ..... I stopped lending after getting -0.8% on the "projected" rate on recycled payments through most of last August - anyone recognise me? I won't be going back, except maybe to RapidReturn my whole five figure portfolio. Signed Dis GRUNTled old Grumpy
|
|
|
Post by jevans4949 on Nov 15, 2013 21:03:29 GMT
The way I read it, the main objective is to ensure that everybody has the same percentage of unlent money. So yes, this will favour those who have just put in a new deposit; chiefly it will mean that those with a larger overall deposit will always have a larger amount unlent.
I started with Zopa in September 2012, but started pulling money out when Safeguard became the only option.
The more time passes, the less Zopa looks like a P2P system to me.
|
|
duck
Member of DD Central
Posts: 2,548
Likes: 5,539
|
Post by duck on Nov 16, 2013 8:33:47 GMT
Far from impressed.
I have a 5 figure sum in zopa and initially gave Safeguard a go whilst I kept old offers running. Lending rates slowed and strategies to get money lent out were removed. Rates plummeted and recycling repayments became difficult.
I started withdrawing repayments whilst keeping a small number of new loans coming in.
Now it appears that I will be penalised further.
There are better 'homes' for my cash so zopa's loss will be others gain ......
|
|
|
Post by elljay on Nov 16, 2013 10:00:45 GMT
Giles has now posted an update.
|
|
bugs4me
Member of DD Central
Posts: 1,841
Likes: 1,465
|
Post by bugs4me on Nov 16, 2013 11:21:41 GMT
Giles has now posted an update. Yes indeed he has but in the meantime I doubt if it will do much to settle things down as drilling down into the essence all it has said is we'll have a look at things. When or if things are reversed to get the level playing field back it may be okay. Loosing customers is easy but getting them back....... - especially as there are other players in the field. Shame but that's how things go.
|
|
|
Post by oldnick on Nov 16, 2013 16:53:30 GMT
Far from impressed. I have a 5 figure sum in zopa and initially gave Safeguard a go whilst I kept old offers running. Lending rates slowed and strategies to get money lent out were removed. Rates plummeted and recycling repayments became difficult. I started withdrawing repayments whilst keeping a small number of new loans coming in. Now it appears that I will be penalised further. There are better 'homes' for my cash so zopa's loss will be others gain ...... I too am removing the interest earned on a four figure sum and have not made any new loans for over a year (when A* was at 7.4% - you tell that that to kids today and they don't believe you)
|
|
andy2001
Member of DD Central
Posts: 361
Likes: 34
|
Post by andy2001 on Dec 11, 2013 19:51:00 GMT
Far from impressed. I have a 5 figure sum in zopa and initially gave Safeguard a go whilst I kept old offers running. Lending rates slowed and strategies to get money lent out were removed. Rates plummeted and recycling repayments became difficult. I started withdrawing repayments whilst keeping a small number of new loans coming in. Now it appears that I will be penalised further. There are better 'homes' for my cash so zopa's loss will be others gain ...... I too am removing the interest earned on a four figure sum and have not made any new loans for over a year (when A* was at 7.4% - you tell that that to kids today and they don't believe you) I can remember getting 9% on A*
|
|
|
Post by mrclondon on Dec 11, 2013 20:14:03 GMT
I can remember getting 9% on A* Yes I had lots of A* 36 loans at 9.0% in spring 2010, and an amazing 13.3% on A* 60 autumn 2009. I've not invested in a single loan on zopa since RS started up in the autumn of 2010 .... for me the tax advantages of the RS provision fund made the switch a no brainer. But inevitably as the rates dwindled on RS, my focus switched elsewhere.
|
|
|
Post by rudry2677 on Jan 19, 2014 22:12:57 GMT
I too have lost interest ( ) in Zopa and am withdrawing funds as they become available. It's a bit of a nuisance having to log on to their site each day to arrange withdrawals. I don't suppose for a moment that they'd become user friendly and permit automatic transfers to clients accounts. It's all so very sad as ZOPA, when I first started using it, was such great fun.
|
|
spockie
Member of DD Central
Posts: 299
Likes: 84
|
Post by spockie on Jan 29, 2014 21:42:02 GMT
I've pulled out of Zopa too with regret. It was good at first, but there is so much better out there now.
|
|