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.
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.
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.
Trapped in the slimeball that is AssetzCapital. May they suffer for eternity…
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 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
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...
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.
Trapped in the slimeball that is AssetzCapital. May they suffer for eternity…
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.
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.