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Post by point5clue on Dec 30, 2019 16:57:33 GMT
I checked my month to date statement for my ISA today and noticed a big negative. I've only had a few months where defaults have wiped out all interest, but this is the first time defaults have been several times the interest so I thought I'd look in to it a bit further.
My first guess was that I'd just been unlucky and a few of the £100 loans I got from the early days when I was a bit keen had defaulted together.
However, looking at the downloaded 'current loan book' for the month of December. I saw 73 loans from the same Borrower ID all defaulting on the same day.
I read a thread on duplicate entries earlier in the month, but this seems to be real in that the sum of the 'Capital Outstanding' including each entry matches the 'New Default' value in the statement.
Has anyone else seen this sort of thing ?
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Post by Deleted on Dec 30, 2019 17:22:37 GMT
Yes, I complained about a similar issue earlier this year, although the loans hadn't defaulted at that point, there were just lots of loans to the same borrowers. Zopa rejected my complaint but upheld it once I referred the case to the Ombudsman and Zopa had to look at the issue more closely.
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aju
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Post by aju on Dec 30, 2019 17:55:04 GMT
Yes, I complained about a similar issue earlier this year, although the loans hadn't defaulted at that point, there were just lots of loans to the same borrowers. Zopa rejected my complaint but upheld it once I referred the case to the Ombudsman and Zopa had to look at the issue more closely. Did they find anything wrong? - i'm guessing they might have glossed over the issue but would be interesting to know what happened if anything. I had a situation a couple of years ago now where all of a sudden Zopa closed quite a number of SG covered loans which I investigated and found they had not had any record of issues with the loans - harder to figure out now they have dropped the comments field from CSV's but still possible with statements tools. It turned out they had sold these in error and they somehow re-instated the sold loans value into SG cover, also paid a handsome compensation too.
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Post by Deleted on Dec 30, 2019 18:07:54 GMT
Yes, I don't know what the cause was but I had several instances of 20 or so £10 loans to the same borrowers when the maximum in my lending queue was £1990, so lending should have been a maximum £10 to any one borrower. My complaint was mainly about the increased risk as a result.
That was the final nail in the coffin for me. I got several hundred compensation which covered the cost of selling out almost completely (except for defaults etc).
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aju
Member of DD Central
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Post by aju on Dec 30, 2019 18:22:21 GMT
I've got defaults this month that are at present greater than interest returned if there is nothing tonight or tomorrow then in my case the early adopter will bring it back a little. I seem to have every other month at present is wiping > 50% of interest away with the defaults - of course a default is not necessarily the end of it and one of my defaults seems to have made some form of payment 6 days after the default was recorded. But to be honest things don't normally come that quick and its most likely the customer noticed the default letter and made a payment, perhaps this is going to be sold on I think they have to give 30 days notice for that and some will pay thinking it won't happen.
I also had a few defaults lately where they have suddenly cleared the debt and I wonder whether these are cases of people who inadvertently screwed up or were not able to pay and then got some funds to clear things to keep their credit file clean.
When the month has ended I will analyse the defaults and the closures of SG's to make sure they are closed as a result of either the customer or Zopa closing them because they defaulted.
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upland
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Post by upland on Dec 31, 2019 7:37:14 GMT
I too have noticed that defaults this month are much higher than normal and am watching the situation with concern hoping it does not progress that way.
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benaj
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Post by benaj on Dec 31, 2019 8:28:42 GMT
I checked my month to date statement for my ISA today and noticed a big negative. I've only had a few months where defaults have wiped out all interest, but this is the first time defaults have been several times the interest so I thought I'd look in to it a bit further. My first guess was that I'd just been unlucky and a few of the £100 loans I got from the early days when I was a bit keen had defaulted together. However, looking at the downloaded 'current loan book' for the month of December. I saw 73 loans from the same Borrower ID all defaulting on the same day. I read a thread on duplicate entries earlier in the month, but this seems to be real in that the sum of the 'Capital Outstanding' including each entry matches the 'New Default' value in the statement. Has anyone else seen this sort of thing ? May I ask what is the value those 73 loans in your Zopa portfolio? Surely Zopa's not giving you a default of 73% from one borrower right? We have yet heard a default of 73% default in one day.
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Post by point5clue on Dec 31, 2019 17:47:32 GMT
The amount invested is 8.429 * 72 = £607 on a total loan of £6000 .
I looked back at all the loans acquired that month and they are all at or under £10 (I was carefully topping up to just under the £1000 in the queue at that time).
Its just that 72 of the 500 odd loans are to the same borrower, and I stumped up for more than 10 percent of the total loan.
I've lost less than that because of the repayments amount to about half of that.
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Post by Deleted on Dec 31, 2019 21:33:40 GMT
The amount invested is 8.429 * 72 = £607 on a total loan of £6000 . I looked back at all the loans acquired that month and they are all at or under £10 (I was carefully topping up to just under the £1000 in the queue at that time). Its just that 72 of the 500 odd loans are to the same borrower, and I stumped up for more than 10 percent of the total loan. I've lost less than that because of the repayments amount to about half of that. Sounds similar to my issue, so any complaint should be successful and compensation received for your losses on all except one of the loans.
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