|
|
Post by fuzzyiceberg on Feb 27, 2020 16:01:35 GMT
June, November and now February. Are they possibly doing this every three months now? Yes. Its the easiest thing they can do. Minimal spend by Zopa on chasing bad borrowers and then just offload them to a third party at lenders expense. I would expect to see these routinely every few months.
|
|
ashtondav
Member of DD Central
Posts: 1,814 
Likes: 1,092
|
Post by ashtondav on Feb 28, 2020 7:50:21 GMT
Well the alternative is the FC model where you’re stuck in their system even after death. See the members of the tedious 1.5% club posting their sorry tales on the FC “selling loans “ thread to understand just how lucky you are!
|
|
Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
|
Post by Greenwood2 on Feb 28, 2020 8:28:43 GMT
For me it's nice to know you're not building up a huge backlog of long dead loans gradually filling up your loan book, and even if some of them did eventually pay something back I'd rather have 10% or whatever now than maybe 10% a penny at a time over the next x years.
|
|
|
|
Post by fuzzyiceberg on Feb 28, 2020 11:08:18 GMT
The choice would be better stated as 10% now or a larger amount over time. The company buying these debts is not a charity and expects to make money - good money - from them.
The argument about not having a long tail of debts for someone who wants to exit (or who has exited this mortal coil) is a good point however.
|
|
Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
|
Post by Greenwood2 on Feb 28, 2020 11:26:28 GMT
The choice would be better stated as 10% now or a larger amount over time. The company buying these debts is not a charity and expects to make money - good money - from them.
The argument about not having a long tail of debts for someone who wants to exit (or who has exited this mortal coil) is a good point however.
They can have the extra, a bird in the hand and all that. 
|
|
trevor
Member of DD Central
Posts: 557
Likes: 381
|
Post by trevor on Feb 28, 2020 21:34:18 GMT
My return from Z in the last 12 months is 2.9%. They have been added to the list of FC to withdraw all capital and interest. Zopa bank? There're having a laugh.
|
|
ashtondav
Member of DD Central
Posts: 1,814
Likes: 1,092
|
Post by ashtondav on Feb 29, 2020 14:15:09 GMT
Of course once you start withdrawing performance declines further until finally you are left with just the defaults and lates.
wonder what the return is for those who have stayed invested and reinvested interest and capital. I’d guess it’s higher than 2.8%. Even my wife who is getting 2.8% on plus is averaging 3.5%.
|
|
aju
Member of DD Central
Posts: 3,500
Likes: 924
|
Post by aju on Mar 1, 2020 16:10:05 GMT
I measured the percentage of my returned funds from this fire sale and it seems it was a little better than the previous Nov 2019 one, for us anyway (overall 17% that time).
Measuring (total received / total outstanding)
of all our settled loans in this tranche we got the following.
My Invest 27%
My ISA 23%
Mrs Aju ISA 24%
As we also view this as a joint investment then the overall firesale return on defaults was approx 25%.
(Mrs Aju did not have any invest defaults sold this time.)
However looking at this another way. Of the £530 outstanding capital in this tranche we lost nearly £400 on that sale (not including interest that was returned when the loans were good. )
Interestingly there were 3 collections that went to settled's since the 6th Feb and digging deeper the collections turned to defaults on the 10th & 12th. One of them was still paying something (See update below).
[10/02/2020] set to default
[16/01/2020] Partial replacement payment made via debit card.
[06/12/2019] Partial replacement payment made via debit card.
[08/11/2019] Partial replacement payment made via debit card.
[07/10/2019] Partial replacement payment made via debit card.
[05/09/2019] Partial replacement payment made via debit card.
[06/08/2019] Borrower has been notified of missed payment.
[08/07/2019] Borrower has been notified of missed payment.
[06/06/2019] Borrower has been notified of missed payment.
[08/05/2019] Borrower
I haven't checked how much that partial payments were yet, I'm guessing they were micro payments and they were late with the January so Zopa defaulted it. I'm wondering if the decision to got to sale was AI based rather than person based.
Update: So i checked all the offending borrowers payments and they had been paying from the start April 2018 ok up until Apr 2019 then they missed nearly 3 months and started paying only interest until they missed the Jan payment and then paid double in on the 20th Jan. I'm guessing the late payment in Jan triggered the final straw process and it was placed into the bag for the debt sale.
In this case alone they had paid £2 of the £10 loan and 1.69 in interest.
|
|
