aju
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Post by aju on Nov 7, 2019 16:53:48 GMT
Just got an email stating that zopa is having another debt sale. I wonder how much that I may lose on this one. Mrs Aju does not as yet seem to have an email so perhaps we may get off lighter than last time. The eMail seems to be like a fan fare but from my perspective I'd be happier if they would spend more time trying to get the borrowers to pay.
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rogedavi
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Post by rogedavi on Nov 7, 2019 17:01:37 GMT
I actually prefer to just realise the loss at some (albeit likely lower) recovery rather than just have it sitting there for years in the hope of getting a few pennies more.
Having said that - are these sold off bad loans then treated as defaults in their statistics?
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zlb
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Post by zlb on Nov 7, 2019 23:33:39 GMT
I got 0.22p
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aju
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Post by aju on Nov 8, 2019 0:09:24 GMT
Can you see the entry in your statements then, both myself and Mrs Aju got the email but as yet nothing has actually come through. Not that I can see for us anyway. Probably will come today, 8th Nov perhaps. For us each previous one usually can be found in the statements as antry marked as "Capital Adjustment Credit".
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zlb
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Post by zlb on Nov 8, 2019 16:18:00 GMT
Can you see the entry in your statements then, both myself and Mrs Aju got the email but as yet nothing has actually come through. Not that I can see for us anyway. Probably will come today, 8th Nov perhaps. For us each previous one usually can be found in the statements as antry marked as "Capital Adjustment Credit". I thought it was the value that appeared as a specific repayment in this month's info on the ? button next to earnings - is that some other kind of reclaim that Zopa have achieved rather than this debt sale?
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benaj
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Post by benaj on Nov 8, 2019 16:25:31 GMT
I have 2 "defaults" in my current loan book. Not sure if I want to celebrate or not, no debt sale for me yet, but there is a very good borrower, A grade, makes CAPITAL repayment every month.
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Greenwood2
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Post by Greenwood2 on Nov 8, 2019 17:18:54 GMT
I quite like the debt sales, apart from getting some money back, it also means you may be able to actually exit Zopa at some point, unlike other P2Ps where you seem to be pretty much locked in for life with bad debt.
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Post by Deleted on Nov 8, 2019 17:21:38 GMT
No payment for me yet, but some defaults (but not all) have disappeared from my loan book.
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aju
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Post by aju on Nov 9, 2019 0:03:58 GMT
No payment for me yet, but some defaults (but not all) have disappeared from my loan book. When they appear they will be marked as settled, I checked earlier and could not see anything as yet. They will be in the all_time_loanbook and as I said earlier there will be a single entry in the latest statement file marked as Capital Adjustment Payment. Well that's how they appeared int previous debt sales. Interestingly I checked some of my recent settled's and one of them is marked as Deceased in the comments field. Not sure why as usually it takes up to 6 months for an estate to be completed, I think.
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ashtondav
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Post by ashtondav on Nov 9, 2019 22:07:31 GMT
If only FC did this people could exit. WhyTF wouldn’t you support it?
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aju
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Post by aju on Nov 10, 2019 0:08:44 GMT
If only FC did this people could exit. WhyTF wouldn’t you support it? Oh I don;t know, maybe I have quite a few defaults and a lot of them are paying, although admittedly the last time they did this back in may many had not paid in quite a while. The cynic in me thinks this is just a way of getting them off the books at nil loss to Zopa - I'm assuming that last bit of course.
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Post by propman on Nov 11, 2019 9:04:43 GMT
I'm sure the purchaser is only paying an amount that leaves them with an expected profit after their costs. As Zopa can't charge us for their costs, this is a way of making us bear any costs of collection irrecoverable from borrower.
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aju
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Post by aju on Nov 11, 2019 10:52:53 GMT
I'm sure the purchaser is only paying an amount that leaves them with an expected profit after their costs. As Zopa can't charge us for their costs, this is a way of making us bear any costs of collection irrecoverable from borrower. I agree with your comments to a point but have Zopa not already charged us for the cost of managing the loan in the difference between what we get as a lender and what the borrower pays in the rates. Whilst I understand that there are many people who do not pay and think they are getting away with not paying some of them will actually pay something when they receive the letter that states the loan is being passed on to 3rd party recoveries. I have received minor payments the month the loan is sold on that Zopa has described as this effect. Zopa says the letter panics some people into making a payment but they have not paid a thing up to that point. I have not received any "Capital Adjustment payment" as yet so cannot actually see which loans are affected or by how much. I usually can see the new Settled items as I keep records when Zopa does this. I have noticed though that "Settled" is not just associated with a CAP entry.
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Post by propman on Nov 11, 2019 12:08:40 GMT
I'm sure the purchaser is only paying an amount that leaves them with an expected profit after their costs. As Zopa can't charge us for their costs, this is a way of making us bear any costs of collection irrecoverable from borrower. I agree with your comments to a point but have Zopa not already charged us for the cost of managing the loan in the difference between what we get as a lender and what the borrower pays in the rates. Whilst I understand that there are many people who do not pay and think they are getting away with not paying some of them will actually pay something when they receive the letter that states the loan is being passed on to 3rd party recoveries. I have received minor payments the month the loan is sold on that Zopa has described as this effect. Zopa says the letter panics some people into making a payment but they have not paid a thing up to that point. I have not received any "Capital Adjustment payment" as yet so cannot actually see which loans are affected or by how much. I usually can see the new Settled items as I keep records when Zopa does this. I have noticed though that "Settled" is not just associated with a CAP entry. I think that the fee should cover chasing delinquent debts, but on a loan by loan basis it will be insufficient to chase that loan, so it would only be covered if the fees from on time borrowers include contributions to bad debt chasing. however this is exactly my point, Zopa are doing less for their money.
your point does raise another point. Partial payments are credited to interest until interest is paid up in full. It would be interesting to know whether any amounts were taken by Zopa as their fee when interest is NOT paid in full and, if so, how the amounts paid are allocated. Any ideas? in the distant past when fees were levied on lenders, they did NOT charge on any loans that were in arrears.
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pip
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Post by pip on Nov 11, 2019 16:47:46 GMT
I agree with your comments to a point but have Zopa not already charged us for the cost of managing the loan in the difference between what we get as a lender and what the borrower pays in the rates. Whilst I understand that there are many people who do not pay and think they are getting away with not paying some of them will actually pay something when they receive the letter that states the loan is being passed on to 3rd party recoveries. I have received minor payments the month the loan is sold on that Zopa has described as this effect. Zopa says the letter panics some people into making a payment but they have not paid a thing up to that point. I have not received any "Capital Adjustment payment" as yet so cannot actually see which loans are affected or by how much. I usually can see the new Settled items as I keep records when Zopa does this. I have noticed though that "Settled" is not just associated with a CAP entry. I think that the fee should cover chasing delinquent debts, but on a loan by loan basis it will be insufficient to chase that loan, so it would only be covered if the fees from on time borrowers include contributions to bad debt chasing. however this is exactly my point, Zopa are doing less for their money.
your point does raise another point. Partial payments are credited to interest until interest is paid up in full. It would be interesting to know whether any amounts were taken by Zopa as their fee when interest is NOT paid in full and, if so, how the amounts paid are allocated. Any ideas? in the distant past when fees were levied on lenders, they did NOT charge on any loans that were in arrears.
It probably is indicative that Zopa are not the best in class of debt collection and yes selling off some dud loans probably makes things a bit tidier for Zopa. However I am for the idea myself. We get some money on loans where most platforms will return you nothing and Zopa's borrowers know that the site is not an easy touch and debts will get chased hard. As another poster said, for a borrower just knowing that your debt will be sold on to the highest bidder, who will definitely chase the debts hard, might be enough to get some reluctant borrowers to cough up. Also may prevent some dud borrowers from applying in the first place. The P2P industry should be somewhat pragmatic here. Some customers will decide to end their investments on a platform and it would probably be in the interest of everybody if the affairs on the customers account were settled after a year or two rather than expecting the customer to keep up with a trickle of pennies being recovered for potentially decades.
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