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Post by shanghaiscouse on Dec 31, 2019 10:43:15 GMT
I had about 12,500 on loan and put it all up for sale. I only managed to sell around 7,500, which I have withdrawn. What this means is there is a problem with the remaining 5,000. They are still saying I am projected to earn 2.8 - 3.8%. However, from my experience with other platforms it seems a foregone conclusion that all my historical interest (about £700) is about to be wiped out by bad debts. It is bizarre that when Zopa get real information about the quality of my loan portfolio, i.e. when they put it up for sale and a big chunk of it does not sell, then they do not take this information into account in their projected returns. If they did then I would be projected to be on a lifetime loss.
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benaj
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Post by benaj on Dec 31, 2019 11:05:08 GMT
Your experience is similar to what I experienced back in late 2017, the amount sold 1st time and the interest earned etc. You will be able to sell the rest if you keep repeating the selling process. I sold all the current loans (££££££) within 4 months in late 2017. I haven't made a loss on Zopa plus and FC, although my profit on Z+ was small, 0.8% (for actively holding 8 months) after all the selling fees, you should be able to do better than 0.15% rainy day FSCS account in 18 months time with the help of debt sale and on-going recovery. Compared to FC, I think FC managed to deliver better return in the wind down / sell out scenario. My lowest return on wind-down / sell out FC account is 2.9%, highest 5% with 0 active loans left. helpcentre.zopa.com/en/articles/3514273-how-do-i-access-my-money-by-selling-loans[Above URL updated] From Zopa: Other explanations, Zopa is having difficulty to find other investors buying the loan parts you are selling because they have already have them. This is especially true if you have the plus loan parts, D&E loans can only be sold to another plus investors. So far, RS and other platform such as AC, Loanpad with provision fund is the only model that works for quick liquidity because there's no requirement for diversification. |
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Post by davee39 on Dec 31, 2019 12:06:26 GMT
I had about 12,500 on loan and put it all up for sale. I only managed to sell around 7,500, which I have withdrawn. What this means is there is a problem with the remaining 5,000. They are still saying I am projected to earn 2.8 - 3.8%. However, from my experience with other platforms it seems a foregone conclusion that all my historical interest (about £700) is about to be wiped out by bad debts. It is bizarre that when Zopa get real information about the quality of my loan portfolio, i.e. when they put it up for sale and a big chunk of it does not sell, then they do not take this information into account in their projected returns. If they did then I would be projected to be on a lifetime loss. This is fairly normal. You cannot sell loans if they are close to making a monthly payment. The DD requests are made to the banks a few days before payment is due. This means that loans due to make a repayment over several days will not sell. You will probably find your biggest chunk of repayments are made on the first of the month, so a big chunk of loans will be unavailable for sale. Try again after seven days and many more loans will be sold.
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aju
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Post by aju on Dec 31, 2019 13:05:41 GMT
I had about 12,500 on loan and put it all up for sale. I only managed to sell around 7,500, which I have withdrawn. What this means is there is a problem with the remaining 5,000. They are still saying I am projected to earn 2.8 - 3.8%. However, from my experience with other platforms it seems a foregone conclusion that all my historical interest (about £700) is about to be wiped out by bad debts. It is bizarre that when Zopa get real information about the quality of my loan portfolio, i.e. when they put it up for sale and a big chunk of it does not sell, then they do not take this information into account in their projected returns. If they did then I would be projected to be on a lifetime loss. is right it's not possible to sell all loans at once as there will be payments due. You could try the following "loan book overview" screens though (when you are logged into your account you can just click the links below and they will go directly to a sometimes quite useful page. secure2.zopa.com/lender/loan_book/standardsecure2.zopa.com/lender/loan_book/isaScroll down to the "Expected payments schedule" section (Approx half way down on my full page screen) and you will see where the payments are likely to hit selling requests. I'm not sure how much that section updates and when though as it says "Please note that direct debits can take up to 4 business days to clear.". In mine and Mrs Aju's 2 accounts each a lot of payments are made on the 1st of the month but it may be different for yourself. It's not a given that the loans will pay on those dates but it may give you a heads up. Hope this helps.
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Post by newlender on Jan 27, 2020 14:49:30 GMT
I have a big sale going through at the moment so will report on progress in a few days. (Can anyone tell me how to view the progress of my sale on my webpages?)
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aju
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Post by aju on Jan 27, 2020 15:14:43 GMT
I have a big sale going through at the moment so will report on progress in a few days. (Can anyone tell me how to view the progress of my sale on my webpages?) Can't be 100% sure as it a little while and Zopa screens seem to change with the wind! Just select "Access your money" on the front page (top level summary option) of Invest or ISA products and it should be self evident from there. Last time I seem to remember you have to confirm any changes or "stop selling" options so just have a play with it. You should be able to see its general progress at that point - I kept charts of mine but that was just me being overly precise and detailed!.  There is a way to see a bit more detailed selling if you know how to read statements CSV files or if Zopa still does this. Again I seem to remember if you look at the statements options you may even see the loans selling in the "Statements", Other Statements option. Near the bottom you should see a "Download monthly transactional statements" option click that and you may even see some selling data at that point without downloading any CSV file. You could look at that occasionally. As I say you can also download this months data - its changing every day and hour usually and you will be able to see the detailed items and timing in there. Look for items as shown below it will have date and time - there may be a lot of other dross in there that is useful but just general day to day i/c and o/g stuff. The items you are interest in were - when I did last may - using filter options in excel will enable you to drill into the sale items. Items with text like "RR Upfront Interest for LoanID" "Interest credits paid for RR request" "Rapidreturn Selling Fee" "Loan to LoanID sold via Rapid Return" are all paid out items, Column 4 in the statements CSV files if you use them. They could be in quite large blocks depending on the selling times again as shown in the csv files. Hope that helps, someone else may have documented it when they did it if it's changed. It takes quite a bit of positive response to stop the sale I think!
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aju
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Post by aju on Jan 27, 2020 16:41:21 GMT
I have a big sale going through at the moment so will report on progress in a few days. (Can anyone tell me how to view the progress of my sale on my webpages?) Sales appear as individual entries - “Loan to xxxxxxxxxxxx sold via Rapid Return” - in your monthly transactions statement followed by entries for selling fee, interest credits and ‘move money’. Bit more succinct but I did say that  and you may even be able to see it in the web pages if you catch it quick enough i.e in the week it's sold and recorded and you are inside the date parameters of the web screen, i.e. current week.
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Post by stevexxx on Feb 13, 2020 11:06:07 GMT
Always a bad idea to sell out, that's how people loose money, much better to let the loans run down naturally and don't put money in if the intent is to sell out early... Turning off auto-invest will will probably get half your money back in 12 months anyway. ..
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zlb
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Post by zlb on Feb 13, 2020 11:25:30 GMT
I had an email saying my loan sale was complete - except on logging in there was no evidence of anything in holding, still a few K in ISA. Hard to believe nothing sold, so I'm wondering on systematic error. Anyone else?
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Post by Deleted on Feb 13, 2020 11:56:34 GMT
Always a bad idea to sell out, that's how people loose money, much better to let the loans run down naturally and don't put money in if the intent is to sell out early... Turning off auto-invest will will probably get half your money back in 12 months anyway. .. But whilst letting loans run down, you could experience a lot more defaults - sometimes it's better to cut and run. I'm not saying it's always better to sell, but it's definitely not always better not to. You can lose money by staying as well as selling - at least your losses are capped when you sell.
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Post by stevexxx on Feb 13, 2020 13:04:21 GMT
Always a bad idea to sell out, that's how people loose money, much better to let the loans run down naturally and don't put money in if the intent is to sell out early... Turning off auto-invest will will probably get half your money back in 12 months anyway. .. But whilst letting loans run down, you could experience a lot more defaults - sometimes it's better to cut and run. I'm not saying it's always better to sell, but it's definitely not always better not to. You can lose money by staying as well as selling - at least your losses are capped when you sell. If you run your loans down the interest will cover the defaults as they come in unless the default rate rises to a rate that's never happened in zopa yet. Defaults will always be a % of your overall account and don't compound as you suggest.. If you sell out then whatever defaults you have you've lost your money, this is a mistake many people have made then complain about making a loss. The only time I would sell out is if the loans are covered by a protection fund, I am desperate for the money or I believe the platform wont be here in a years time.. For example if you sell out now you might loose X% in bad loans, if you turn off auto-invest you get back almost half your money in 12 months then sell out and your defaults would also by half of what it is now and you've made even more in interest. The worst approach with Zopa would be to use an invest and sell up strategy, that's the best way to loose money. When I invest its for the full term otherwise my money would be better off sat in my bank earning nothing..
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benaj
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Post by benaj on Feb 13, 2020 13:06:24 GMT
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zlb
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Post by zlb on Feb 13, 2020 20:33:41 GMT
yeah I know - had an email stating that once. this one said complete. oh well.
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Post by Deleted on Feb 14, 2020 20:56:28 GMT
But whilst letting loans run down, you could experience a lot more defaults - sometimes it's better to cut and run. I'm not saying it's always better to sell, but it's definitely not always better not to. You can lose money by staying as well as selling - at least your losses are capped when you sell. If you run your loans down the interest will cover the defaults as they come in unless the default rate rises to a rate that's never happened in zopa yet. Defaults will always be a % of your overall account and don't compound as you suggest.. If you sell out then whatever defaults you have you've lost your money, this is a mistake many people have made then complain about making a loss. The only time I would sell out is if the loans are covered by a protection fund, I am desperate for the money or I believe the platform wont be here in a years time.. For example if you sell out now you might loose X% in bad loans, if you turn off auto-invest you get back almost half your money in 12 months then sell out and your defaults would also by half of what it is now and you've made even more in interest. The worst approach with Zopa would be to use an invest and sell up strategy, that's the best way to loose money. When I invest its for the full term otherwise my money would be better off sat in my bank earning nothing.. Something you are not factoring in though is if returns on Z have r been reduced to way under 2%, as in my case, but getting nearly 6% on LW then the expense of a sell off is easily out-wayed in just a few months by the increase in return from moving. This is an equation everyone should do and everyone's circumstances are different. But it can be a mistake simply just sitting for years waiting for diminishing returns.
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Post by carol167 on Feb 15, 2020 8:23:16 GMT
If you run your loans down the interest will cover the defaults as they come in unless the default rate rises to a rate that's never happened in zopa yet. Defaults will always be a % of your overall account and don't compound as you suggest.. If you sell out then whatever defaults you have you've lost your money, this is a mistake many people have made then complain about making a loss. The only time I would sell out is if the loans are covered by a protection fund, I am desperate for the money or I believe the platform wont be here in a years time.. For example if you sell out now you might loose X% in bad loans, if you turn off auto-invest you get back almost half your money in 12 months then sell out and your defaults would also by half of what it is now and you've made even more in interest. The worst approach with Zopa would be to use an invest and sell up strategy, that's the best way to loose money. When I invest its for the full term otherwise my money would be better off sat in my bank earning nothing.. Something you are not factoring in though is if returns on Z have r been reduced to way under 2%, as in my case, but getting nearly 6% on LW then the expense of a sell off is easily out-wayed in just a few months by the increase in return from moving. This is an equation everyone should do and everyone's circumstances are different. But it can be a mistake simply just sitting for years waiting for diminishing returns.
I think the more relevant point is that if you are getting way under 2% - then for the risk - that is a seriously bad investment and should be pulled anyway.
I'm not sure recommending LW is a good idea as many of us were lured in under the impression we were getting around 6% only to find that they've taken a lot of that away in backdated interest shortfall either in the form of punitive exit fees or by seriously reduced interest rates going forward. Out of the frying pan and in to the fire comes to mind. You'd be much better off with AC or even RS who have weathered recent storms in a professional manner that LW can only dream of.
I would like to sell out of Zopa but I'm currently getting 3.7% and if I add on the 1% cost to sell, even swapping the money into eg AC it would take many months to even get back to where I am now. In about a years time the amount will have naturally reduced by at least half and the amount remaining will be not too significant so I may well reconsider.
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