pip
Posts: 542 
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Post by pip on Apr 26, 2019 15:43:16 GMT
For me I am now consistently getting defaults above interest payments. To me this is totally unsustainable and I am pulling out of Zopa as fast as I can.
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Post by Deleted on Apr 26, 2019 15:46:42 GMT
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 26, 2019 16:15:56 GMT
Rates are not as high as target, but sort of OK. I do have a lot of confidence in Zopa surviving, unlike a few other platforms, so not out yet.
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pip
Posts: 542
Likes: 725
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Post by pip on Apr 26, 2019 16:23:10 GMT
Rates are not as high as target, but sort of OK. I do have a lot of confidence in Zopa surviving, unlike a few other platforms, so not out yet. Ok interesting that others still seem to be making money. I am actually losing money month after month pretty consistently now.
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benaj
Member of DD Central
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Post by benaj on Apr 26, 2019 16:31:36 GMT
I am a passive investor. Receiving monthly recovery repayments only.  No more defaults. |
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 26, 2019 16:37:20 GMT
Rates are not as high as target, but sort of OK. I do have a lot of confidence in Zopa surviving, unlike a few other platforms, so not out yet. Ok interesting that others still seem to be making money. I am actually losing money month after month pretty consistently now. When you withdraw funds you are removing good loans and concentrating non-performing loans in your loan book. Hopefully recoveries will improve things a bit eventually. But returns are definitely not as good as the targets suggest, for people posting on here anyway.
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Post by Ace on Apr 26, 2019 16:39:29 GMT
I started drawing down from Zopa in Feb when my XIRR was 5.53%. Strangely it's risen to 6.75 since!
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benaj
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Post by benaj on Apr 26, 2019 17:04:19 GMT
I started drawing down from Zopa in Feb when my XIRR was 5.53%. Strangely it's risen to 6.75 since! So, no or less defaults since Feb, Ace?
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Post by Ace on Apr 26, 2019 18:45:11 GMT
I started drawing down from Zopa in Feb when my XIRR was 5.53%. Strangely it's risen to 6.75 since! So, no or less defaults since Feb, Ace ? Some of my reluctant borrowers decided to start paying again. Perhaps Zopa sent the persuaders round 😉
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Post by fishyhooky on Apr 26, 2019 19:26:27 GMT
Due to ill health I've withdrawn all I can from my Invest & ISA accounts C £60k
I have £640 left between both accounts due to defaults, late payments etc.
So far this month I've received £11.61 in Interest Earned from borrowers and Bad Debt repayments
Does anyone know if it is possible to close both account completely?
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 26, 2019 20:00:03 GMT
Due to ill health I've withdrawn all I can from my Invest & ISA accounts C £60k
I have £640 left between both accounts due to defaults, late payments etc.
So far this month I've received £11.61 in Interest Earned from borrowers and Bad Debt repayments
Does anyone know if it is possible to close both account completely?
If you have serious problems Zopa might help close your accounts you would have to ask.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 27, 2019 6:58:44 GMT
I am a passive investor. Receiving monthly recovery repayments only. No more defaults. Can you estimate the % of recoveries.
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benaj
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Post by benaj on Apr 27, 2019 9:47:20 GMT
I am a passive investor. Receiving monthly recovery repayments only. No more defaults. Can you estimate the % of recoveries. I was expecting 40% recovery if zopa does not sell bad debts to Cabot in the 10 year time frame. Cabot paid a lump sum of around 10% for outstanding capital for those loans had less than 10% capital repaid. So all together, around 20% capital repayment and 5% interest repayment when bad debts are settled early. My existing defaults have 26% capital repaid and 9% interest repaid after acquiring the loans for 2 years.
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trium
Member of DD Central
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Post by trium on Apr 27, 2019 14:15:04 GMT
I am currently moving to holding while I decide whether to withdraw or not. I am irritated rather than appeased by the banners Zopa have started putting on my account pages telling me not to worry about a few defaults I had last month - this has been going on for 18 months now. Zopa exhort me to stick it out and my returns will normalise - well I have stuck it out and my returns have worsened. Zopa's latest update claims to have lent my money at 5.6% over the last 4 weeks but my XIRR for the last 12 months has whittled down to 3.05%, including the debt sale proceeds and including a residual 8% or so in Safeguarded Classic.
March was the worst month ever for me after more than 7 years on the platform. April has been much better though still a couple of days left - 4 or 5 defaults would wipe out all the interest - but I'm not seeing many encouraging signs. Withdraw or re-invest? Probably withdraw.
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benaj
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Post by benaj on Apr 27, 2019 15:10:31 GMT
According to the public loan book data (updated on 31/01/2019), loans originated in 2018 have 0.5% arrears and 0.25% defaults. Average lending rate for arrears and defaults is 16.8%. It seems Zopa manages to improve actual return from 2018 lending although expected return is lower than 2016/17. Loans originated in 2017 have the highest Revised default expectations. www.zopa.com/invest/risk/historical-performance |
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No more defaults.
