benaj
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Post by benaj on Apr 16, 2018 11:16:42 GMT
I look at my active Zopa loan book, it's not a big loan book, it has only 6 active loans with late repayment. | Market | Status | Days Active | Arrears (% of outstanding amount) | Percentage repaid | terms
(month) | | C1 | Arrangement | 369 | 24.1% | 9.59% | 36 | | E | Arrangement | 343 | 19.13% | 2.44% | 60 | | D | Collections | 343 | 17.05% | 15.79% | 48 | | D | Collections | 385 | 14.12% | 10.38% | 60 | | D | Collections | 378 | 11.93% | 8.01% | 60 | | C1 | Collections | 379 | 4.6% | 16.85% | 60 |
Considering if someone repays on time for 60 months loan, s/he repays 100% of the total cost of borrowing if s/he 1.67% every month for 5 years, it seems Zopa still collecting repayment even if it is 10 months behind schedule and without repayment arrangement. Those loans in arrangement status, Zopa allows borrowers to repay as low as 2.44% of the total amount outstanding after borrowing 343 days without defaulting the loan. Any thoughts? |
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Greenwood2
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Post by Greenwood2 on Apr 16, 2018 11:20:19 GMT
Better paying something than nothing.
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benaj
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Post by benaj on Apr 16, 2018 14:01:40 GMT
I think it's a joke when Zopa tells me I am earning 20+% with the projected rate of 8.9% with these 6 loans in arrears.
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aju
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Post by aju on Apr 16, 2018 17:38:50 GMT
I think all it's doing is averaging your lent rates of your active loans so it's not surprising it reports bollox (french term for rubbish ;-)) when one is dealing with defaults and arrears. The thing is that defaults are decremented from the summary screens - I think. So it begs the question why they might be stating a return on them.
If I missed the point though apologies for interjecting.
Edit: I stand corrected my Pre-safeguard summary has 0.99p lent and it states I am earning at 5.8% on 4 loans none of which are in arrears. In my case its ignoring the defaults - I have >£120 outstanding on that offering so I clearly am not earning at 5.8%. I don;t have any arrangement or collections in pre-safeguard.
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adrian77
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Post by adrian77 on Apr 24, 2018 6:40:06 GMT
These Xops plus returms are a joke
here is my latest summary
Account summary
Category Amount
Investment total (1st April 2018) £904.73
Interest earned from borrowers £10.27
Fees: Fee for selling loans - £1.63
Bad debt: New defaults - £153.02
Bad debt: Repayments from defaults £3.62
I feel cheated and would advise everybody to steer clear of these sharks
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ashtondav
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Post by ashtondav on Apr 24, 2018 7:01:53 GMT
Investment total, £46,000
Earnings £275
Interest earned £288
Bonus £36
Bad debt £110
Bad debt repayments from defaults £61
Due to low interest rates I’ve been withdrawing repayments for over a year now so my average invested is somewhat higher. Even so, returns are as expected. I do think you have to have a large sum invested before you can achieve “average” rates - and I think Zopa need to address this.
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adrian77
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Post by adrian77 on Apr 24, 2018 7:38:23 GMT
I think a problem with these Zopa loans is that there is a ticking time bomb
- what is a loan ; in a word "debt", is there a guarantee it will be repaid ; in a word "no".
If you leave your money in Zopa plus then you may get the projected return which is ever being revised downwards but if you sell your loans (at 1%) then you can't sell the rubbish ones and are left with a very poorly performing loan book as I suspect I have.
I regret the day I ever heard of Zopa.
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benaj
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Post by benaj on Apr 24, 2018 10:27:36 GMT
I received my first ever bad debt repayment in March 2018
Account summary
Category Amount
Interest earned from borrowers: 0.97% of current "investment" total
Fees: Fee for selling loans - 1.43% of current "investment" total
Bad debt: New defaults - 1.91% of current "investment" total
Bad debt: Repayments from defaults 0.49% of current "investment" total
Net earning in March: -1.91% of current "investment" total
My remain portfolio in Zopa plus are the underperformed loans that I could not have sold 5 months ago, these loans do to pay up on time, which represent 1.37% of the total amount invested in my all time Zopa plus loan book.
According to Zopa, I am supposed to earn 20+% with the projected rate of 8.9% per year
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Post by stevexxx on Apr 29, 2018 18:59:56 GMT
8k approx invested, just over £400 interest 2017-2018 +5% spot on
Isa is a little more complex as Ive been loading in new money but probably works out around 4%, which would be about right for the first year investment ... Most defaults occur in the first 18 months of a loan after which the rates will pick up.. Zopa and always has will work long term, it is not a quick turn around pop it in and sell thing...
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ashtondav
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Post by ashtondav on Apr 29, 2018 21:54:06 GMT
Totally agree. There are some naive investors who have sold their good loanbook and are left with defaults and then complain. Please understand the risks in p2p, it is not the right vehicle for these people.
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Post by newlender on Apr 30, 2018 6:02:50 GMT
I have found that the revised Z+ product is much more stable than the old one. The number of D/E loans was much reduced to give a better blend and my IFISA (since June 2017) has had virtually no Z+ defaults. My old Z+ had defaults almost every month and at one stage the total reached >£600 (non-Safeguard) on a fairly modest investment. I think that posters here are still suffering from the original flawed product. The key to all of this is to have a realistic balance of Core/Plus; my IFISA is roughly 80%/20% and I'm pleased with the returns so far.
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benaj
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Post by benaj on Apr 30, 2018 8:29:16 GMT
Totally agree. There are some naive investors who have sold their good loanbook and are left with defaults and then complain. Please understand the risks in p2p, it is not the right vehicle for these people. I tried to sell to bad loan book 5 months ago. The bad ones. I know Zopa cannot sell just the bad ones (or should we say the ones about to turn bad before any missed payment or having arrears), so I decided the sell the lot. One of the thing I dont like about Zopa is the selling process, i didn’t know it wasn’t anything quick. It doesn’t matter selling for less than £10 or £££, it is almost impossible sell 100% using the zopa selling algorithm. May be it’s the UX design flaw, investors expect to get X amount if Zopa trying to sell X amount in 20 working days. With Zopa, it’s anything from 0 to less than X. 😑 I am pretty sure less people would complain if zopa sells Y Amount in 1 day under normal condition and assuming there are X amount left after selling.
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