mikeb
Posts: 1,052 
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Post by mikeb on Aug 12, 2014 17:39:03 GMT
Interesting article mentioning the big names, Zopa, FC, RS and AC. Interesting paragraph here :-
"So far this year, none of Zopa's borrowers has defaulted, and at the time of writing none of them is in arrears (which in Zopa terminology means being 45 days behind on their latest instalment)."
Really?
Only, according to my dashboard, I had one default this year, and I'm sure others have queried about getting their Safeguard payouts due to defaults and massively lates. So what gives?
Has Zopa really got its credit checking so tight that the above quoted sentence is true? It makes it sounds like Zopa is practically zero risk.
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kermie
Member of DD Central
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Post by kermie on Aug 12, 2014 20:08:04 GMT
To quote a certain Richard Wilson - I don't belieeeeve it!
I suspect the author of the article has just misunderstood their research.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Aug 12, 2014 20:45:24 GMT
I suspect the author of the article has just misunderstood their research. What a surprise! Won't be the last time they do
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Post by davee39 on Aug 12, 2014 22:21:00 GMT
Clearly my 5 lates (one approaching 5 months to trigger safeguard) are a mirage.
Or A Computer Advertising magazine has hired one the Daily Mails less competent writers (I hesitate to use the term Journalist) to fill a blank page with Garbage.
Actually All Dm's writers are of pretty equal incompetency.
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pikestaff
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Post by pikestaff on Aug 13, 2014 6:06:36 GMT
The author has misunderstood quite a lot. There's also a bit about regulation requiring platforms to hold capital to cover bad debts - which is not what the capital is for, and it's much too little for that!
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Post by djia977 on Aug 13, 2014 8:50:24 GMT
Having RR'd my entire portfolio I am left with approx 4% of it 'unRRable' due to lates. I now have to hope that these 61 loans all default so that Safeguard pays up before the scheduled term is up - no such issues with Ratesetter.
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Post by davee39 on Aug 13, 2014 8:55:21 GMT
The author has misunderstood quite a lot. There's also a bit about regulation requiring platforms to hold capital to cover bad debts - which is not what the capital is for, and it's much too little for that! Having read some of the regulation, it appears that the capital needed by a new platform is barely enough to provide coffee for the office staff (£20k - which is pretty insignificant). This is a regulatory failure possibly influenced by lobbying from the wannabee platforms.
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Post by Deleted on Aug 13, 2014 9:42:05 GMT
Hi all, The quote from the article has been misinterpreted by the reporter from Computer Shopper – it would appear that the reporter is referencing figures stated on the Zopa website relating to borrowers originated in 2014 to date. A tiny number of lenders have experienced defaults and received Safeguard pay outs. We also have a tiny number of borrowers in arrears, however the agreed P2PFA standards in displaying this data means that we are required to show figures to at two decimal places. In Zopa’s case, our arrears are in the three decimal places rather than the two, so we show this as 0.00% whereas our actual defaults are shown as 0.01%. You can see the full table and explanations via this link - www.zopa.com/lending/peer-to-peer-experts We will of course speak to the journalist to inform him of this error and to help inform any future articles that appear online or in print from the publication. Thanks, Mat |
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mikeb
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Post by mikeb on Aug 13, 2014 17:39:52 GMT
Hi @zopamat (and welcome over!) Thanks for the explanation -- I'm not surprised that it turns out to be slightly wobbly journalism. As a lender on Zopa, it just didn't sit right. I could understand them saying no *lender* has suffered a default/late, due to the Provision fund. But no *borrower* ? Fortunately, I don't take financial advice from computer magazines!
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