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Post by blanik on May 25, 2017 21:50:26 GMT
You also cannot sell a loan if a DD is in processing. So there will be 1 or 2 days worth of loans that cannot be sold today, but could be sold in a couple of days time. This may be where your 4% is coming from.
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Post by gidoppp01 on May 26, 2017 5:27:56 GMT
You also cannot sell a loan if a DD is in processing. So there will be 1 or 2 days worth of loans that cannot be sold today, but could be sold in a couple of days time. This may be where your 4% is coming from. Oh, this is a real pain. I have to rethink my position regarding Zopa.
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Greenwood2
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Post by Greenwood2 on May 29, 2017 7:19:21 GMT
From Zopa Blog:
Can loans always be sold?
No, sometimes it’s not possible to sell all your loans. This could be because:
There is a pending payment on the loan – in these instances, we wait until the seller has been repaid before the loan can be sold.
The loan is currently in arrears - it’s not fair for the buyer to take on a loan which is not currently paying back.
The loan has defaulted.
Loans with payments pending can be sold as soon as the payment clears, and loans in arrears with Safeguard coverage can be sold after the fund has purchased the bad debt. Plus loans cannot be sold if they have ever been in arrears, and defaulted loans in all products are ineligible for sale.
If after 10 days we’re unable to sell your loans, we stop the sale process and let you know we’ve been unable to sell a certain amount of them.
Are there fees to use the secondary market?
In Classic and Plus, there’s a 1% administration fee for selling loans. This fee is waived in Access (for which investors earn a lower return).
If you’re selling a loan that’s worth less than a new investor could expect on a similar loan in today’s primary market, you may have to compensate the investor buying the loan. For example:
You’re selling a loan with a 4% interest rate, and the primary market rate of a similar loan has increased to 5%. In buying this loan, the investor would be worse off for not buying a new loan from the primary market.
To make it fair, you (the selling investor) compensate the buyer. We manage this through an automated process which calculates the compensation amount by comparing the value of your loan to a similar one available on the primary market. We then pass the money directly to the buying investor.
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Post by ogwellian on May 29, 2017 9:49:31 GMT
I don't understand why people assume that just because a loan defaults, that money is lost. Maybe because their definition of default is "This figure relates to any Zopa loan that was written off and closed as bad debt during the specified period that have not been covered by safeguard." Worst month so far on one of my accounts, £81.39 interest (some of which is Classic) and seven defaults of £67.53.
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marie
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Post by marie on May 29, 2017 10:20:01 GMT
I don't understand why people assume that just because a loan defaults, that money is lost. Maybe because their definition of default is "This figure relates to any Zopa loan that was written off and closed as bad debt during the specified period that have not been covered by safeguard." Worst month so far on one of my accounts, £81.39 interest (some of which is Classic) and seven defaults of £67.53. From Zopa customer service when I asked the question: Hello Marie,
Thanks for your email and I appreciate your query.
When we move a loan to Default, our Recoveries team do everything possible to recoup funds. Sometimes cases can go for a long time and unless they are bankrupt, we don't actually close the case. Chasing funds does become more periodic the longer it goes on, such as if we cannot trace or communicate with the borrower. Sometimes we can start to recoup funds on loans that have been defaulted for a small number of years.
Kind regards
Will McCain
Client Services
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Post by ogwellian on May 29, 2017 10:48:11 GMT
I'm waiting in anticipation to get at least 1p back from my defaults. How much effort are they going to put into recovering a defaulted loan of £5k for wedding expenses that made no payments?
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ashtondav
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Post by ashtondav on May 29, 2017 15:11:12 GMT
In April I had £380 of interest. £9 of that was interest payments from defaulters. Rest assured they follow up on bad debt. Try not to micromanage a z+ account on a monthly basis - it's a five year product and you will get a distorted and unrepresentative picture.
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aju
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Post by aju on May 30, 2017 0:00:46 GMT
I didn't have any defaulters in plus for the last tax year (2016/17), all mine were pre-safeguarded all are still paying though in some way.
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Post by WestonKevTMP on May 30, 2017 12:47:15 GMT
I'm waiting in anticipation to get at least 1p back from my defaults. How much effort are they going to put into recovering a defaulted loan of £5k for wedding expenses that made no payments? £5k for wedding expenses and no payments.... Sorry, but this has made me chuckle. Without giving industry secrets away, but this will look somewhat familiar to those of us that have worked in lending a for a number of decades. I suspect this could be classic "flight risk" or "social suicide" fraud, and I'll be amazed if we see a penny of it again! Kevin.
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