benaj
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Post by benaj on Dec 30, 2017 18:48:14 GMT
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Post by newlender on Dec 31, 2017 5:17:43 GMT
I have substantial holdings in RS and Zopa. My view of the two is fairly equally balanced and in general I'm happy. BUT the one area in which RS wins out massively is in the speed of loan sales, which is almost instantaneous. If I want to sell £2K of loans in RS it will mean selling three or four contracts (as I invest in large amounts of >£500 usually) but with Zopa it would mean selling 200 or more - platforms using microloans are always going to be slower.
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aju
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Post by aju on Dec 31, 2017 11:57:05 GMT
I've got relend money stuck in the ISA core queue so there's no shortage of people wanting to lend. If you have some SG loans in there I'll take them off your hands  . I wonder if the sales side is suffering from the slow down across the whole of the platform - its getting better - buts its been sluggish for a while now. |
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benaj
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Post by benaj on Dec 31, 2017 13:51:12 GMT
I have substantial holdings in RS and Zopa. My view of the two is fairly equally balanced and in general I'm happy. BUT the one area in which RS wins out massively is in the speed of loan sales, which is almost instantaneous. If I want to sell £2K of loans in RS it will mean selling three or four contracts (as I invest in large amounts of >£500 usually) but with Zopa it would mean selling 200 or more - platforms using microloans are always going to be slower. RS has a completely different business model, selling loan is definitely quick, but the amount available to sell is dependent on contracts. Although they have PF coverage, but emptying 5 year contracts is impossible in my experience. To be honest, the time to complete loan sales varies. I have sold more than 1000 loans in zopa, selling 200 loans does not take more than 5 days in one account while other account may struggle to sell 10 loans in 5 days. However, I do find even selling loans in 5 days is too long in Zopa while FC manages to complete loan sales within hours. The truth is, loan sales in zopa are done in stages. Usually, after initiating loan sales, some loans will be sold within 5 working days, but there is no guarantee to sell anything. Even after 8 days, there is no guarantee Zopa will complete the 100% loan sale, even when you are selling less than 10 microloans.
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Post by newlender on Dec 31, 2017 14:16:31 GMT
This autumn I sold a lot of loans on the Investing side to move to the ISA. My experience of one £2K sale was that around £1500 arrived in Holding after a few days but the rest dragged on to the extent that I closed the sale when I was up to £1800 sold. The closure took a few days too. As I view an ISA holding as fairly long-term this aspect doesn't bother me too much but it's true that, when I've initiated a sale, I've never actually reached the target sum and have backed out eventually after most of it came through. No money was lost of course, but compared with RS withdrawals it is a very clunky system which perhaps needs some tweaking to make it competitive. I'm just going to put new money into the ISA and am drawing down my Investing side into Holding ready for April 6th. Only about 400 loans in Investing nowadays - over 50 defaults though! None in my ISA Loan Book (yet) but the Collections are mounting up so it's only a matter of time.
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zlb
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Post by zlb on Dec 31, 2017 16:53:17 GMT
Like others, I've cancelled loan sales after too slow action. It's this problem which has been going on for months now, that puts me off putting higher amounts in at the moment.
I know there was a technical glitch once, but otherwise, I don't understand, in terms of plain old customer care, why Z haven't explained these delays. There is always a, now mysterious-sounding, system issue referred to. Perhaps they need to develop new, if their current one is acting like it's a legacy system that can't keep up.
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Post by davee39 on Jan 1, 2018 11:35:48 GMT
Loan parts cannot be sold when a direct debit payment is due, this can cause delays of several days based on flags for expected payment and confirmed payment.
Loan parts cannot be sold to investors who already hold parts of the same loan.
Because Zopa aims for a mix of interest rates the loan part can only be sold to someone who the algorithm has identified as due to receive a part with a matching interest rate, so a part at 3% goes to someone who is due to receive a 3% part.
New investments probably get priority, so if it is already taking several days to get invested, the sale parts have to wait their turn.
The short answer is clunky IT and complexity hangover from when Zopa was smaller.
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benaj
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Post by benaj on Jan 2, 2018 9:26:04 GMT
Loan parts cannot be sold when a direct debit payment is due, this can cause delays of several days based on flags for expected payment and confirmed payment. Loan parts cannot be sold to investors who already hold parts of the same loan. Because Zopa aims for a mix of interest rates the loan part can only be sold to someone who the algorithm has identified as due to receive a part with a matching interest rate, so a part at 3% goes to someone who is due to receive a 3% part. New investments probably get priority, so if it is already taking several days to get invested, the sale parts have to wait their turn. The short answer is clunky IT and complexity hangover from when Zopa was smaller. Thanks for your insight davee39 . However, I suspect it is something else than IT issues when it is expected to sell loans up to 20 days. Assetz's loan are much bigger than Zopa, ranging from 25k to £7.5mil. Yet, auto investment accounts buy loans in part as low as £0.01 on Assetz. I can't imagine my loan cannot to sold to other investors as because all the other investors on Zopa got the same loan already. I have also just downloaded the my all time loan book and I have seen a single loan can be sold to more than 1 investors on the same day, but not on multiple days.I still cannot imagine why cancelling loan sale takes longer than 1 day, it seems the process is not automatic and requires further interaction.
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benaj
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Post by benaj on Mar 6, 2018 20:22:18 GMT
The only speed issue is selling loans. My partner is selling 1 loan (Classic) for less than £10, started selling 2 days ago, 0 sold !!! Finally, my partner managed to sell the last loan today 6th March, the sale was initiated on 7th Feb, that's 27 days in total. I guess the Classic loan was finally sold after the borrower made a "Replacement payment made via debit card" on 1st March. Repayment date was 10th.
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