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Post by notaclue on Oct 13, 2014 10:59:23 GMT
In the past three months I have had more non safeguard bad debt with Zopa than for a long while and last week I received the dreaded email stating another borrower was being assigned to P2PS.
What I am confused about is the fact that the borrower C****Z has been making regular reduced payments for the last 6 months including last week. I've emailed Zopa and not had a clear answer as to why they are assigning the loan in this case.
I wonder if my partial payments from this borrower will continue or be soaked up by P2PS operating costs?
I also wonder if moving late or reduced payment loans which are not safeguarded to P2PS is going to increase?
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hendragon
Member of DD Central
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Post by hendragon on Oct 13, 2014 12:20:56 GMT
on the two accounts we run my partner and I have had something of a spike in late payments, but mostly on one account. Averaging the two out the rate of default/late is not too bad. I would also suggest that Safeguard started in May last year, and the most common time for any loan to go bad is 1-2 years of its start this sort of spike might be expected it should hopefully decline from now onwards.
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Post by notaclue on Oct 13, 2014 13:35:32 GMT
Zopa have replied to my query
So some borrowers making only small repayments will be put into default and Zopa have changed how they handle them.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 13, 2014 13:53:56 GMT
Zopa have replied to my query So some borrowers making only small repayments will be put into default and Zopa have changed how they handle them. I must be due to get 3 default notices in the near future then as I have 3 loans that have been paying peanuts for about a year. There is a logic to Zopa's position as one of these was probably looking at 20 yrs to repay barring a major change in circumstances. 
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ramblin rose
Member of DD Central
“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Nov 7, 2014 16:32:53 GMT
Zopa have replied to my query So some borrowers making only small repayments will be put into default and Zopa have changed how they handle them. I must be due to get 3 default notices in the near future then as I have 3 loans that have been paying peanuts for about a year. There is a logic to Zopa's position as one of these was probably looking at 20 yrs to repay barring a major change in circumstances. I have a number who I've calculated might reach full re-payment by the time they are around 150 yrs old or more  I have been wondering, on and off, whether they'll get reviewed at some point, and it sounds like the answer is 'yes'.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 7, 2014 18:58:28 GMT
I must be due to get 3 default notices in the near future then as I have 3 loans that have been paying peanuts for about a year. There is a logic to Zopa's position as one of these was probably looking at 20 yrs to repay barring a major change in circumstances. I have a number who I've calculated might reach full re-payment by the time they are around 150 yrs old or more I have been wondering, on and off, whether they'll get reviewed at some point, and it sounds like the answer is 'yes'. At least, one of my three has subsequently died whereupon Zopa immediately reclassified the loan as on time! A bug in the system apparently though it took multiple emails for them to acknowledge the error. 
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Post by Ton ⓉⓞⓃ on Nov 25, 2014 13:10:24 GMT
Zopa have replied to my query So some borrowers making only small repayments will be put into default and Zopa have changed how they handle them. Can I ask what happened with your Borrower? I think Zopa have done it this way for some time, I don't think there's a change. Also I think hendragon is right, the clever people explain that there are a couple of peaks in when people default, I think one's around 18months and there's another about 35months, but I could be out with either of these figures. Zopa have replied to my query So some borrowers making only small repayments will be put into default and Zopa have changed how they handle them. I must be due to get 3 default notices in the near future then as I have 3 loans that have been paying peanuts for about a year. There is a logic to Zopa's position as one of these was probably looking at 20 yrs to repay barring a major change in circumstances. With the Borrowers in the 'Penny-a-Month Club' best thing to hope for is that they are able to find a new job. It does seem to happen. I had one where I'm sure he lost his job several times, his payments show a period of increase for awhile then it drops back down again, then up down up. I wonder if he's the builder and pays when he gets work!
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,870
Likes: 11,097
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Post by ilmoro on Nov 25, 2014 13:25:16 GMT
Zopa have replied to my query So some borrowers making only small repayments will be put into default and Zopa have changed how they handle them. Can I ask what happened with your Borrower? I think Zopa have done it this way for some time, I don't think there's a change. Also I think hendragon is right, the clever people explain that there are a couple of peaks in when people default, I think one's around 18months and there's another about 35months, but I could be out with either of these figures. I must be due to get 3 default notices in the near future then as I have 3 loans that have been paying peanuts for about a year. There is a logic to Zopa's position as one of these was probably looking at 20 yrs to repay barring a major change in circumstances. With the Borrowers in the 'Penny-a-Month Club' best thing to hope for is that they are able to find a new job. It does seem to happen. I had one where I'm sure he lost his job several times, his payments show a period of increase for awhile then it drops back down again, then up down up. I wonder if he's the builder and pays when he gets work! All my late payers are now classified as written off, but I have had no communication from Zopa to say they are in default. The exception is the one who died who is still classified as on time despite being a year in arrears and Zopa saying this was wrong and due a (assumingly unrectified system error) 
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Post by Ton ⓉⓞⓃ on Nov 25, 2014 13:41:58 GMT
Can I ask what happened with your Borrower? I think Zopa have done it this way for some time, I don't think there's a change. Also I think hendragon is right, the clever people explain that there are a couple of peaks in when people default, I think one's around 18months and there's another about 35months, but I could be out with either of these figures. With the Borrowers in the 'Penny-a-Month Club' best thing to hope for is that they are able to find a new job. It does seem to happen. I had one where I'm sure he lost his job several times, his payments show a period of increase for awhile then it drops back down again, then up down up. I wonder if he's the builder and pays when he gets work! All my late payers are now classified as written off, but I have had no communication from Zopa to say they are in default. The exception is the one who died who is still classified as on time despite being a year in arrears and Zopa saying this was wrong and due a (assumingly unrectified system error) I wonder if Zopa ever try to keep defaults at the expected level. Zopa must be expecting a jump in defaults when interest rates start to rise, in other words there are people who are just about coping with the way thing are, they are just about making repayments but as soon as something else changing, such as their mortgage increases they will default on our loan. I know Zopa wouldn't do that on porpoise or illegally, but they might take away any slack that they were giving. I wonder if the right thing to do is for Zopa to be easier when the times are hard, but harder when the times are easy. This would tend to flatten out the defaults, so they wouldn't all come at the same time.
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I have been wondering, on and off, whether they'll get reviewed at some point, and it sounds like the answer is 'yes'.
