aju
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Post by aju on Mar 30, 2020 18:34:44 GMT
Has anyone else seen this one, we received eMails from the Zopa CEO last week not more than a week after we initiated loan sales on Zopa with acceptable estimates of a low 0.44% (Market Rate Adjustment-MRA). The CEO suggested the rate had to be uplifted but the suggestion were the rates were improving - not sure how when borrower criteria had been strengthened.
Our Sales Mine and Mrs Aju's too have not as yet reached the front of the queue when in my inbox today I receive an indication of a more than 9 fold increase in the MRA from today. That's quite a hike and thankfully both of us have received enough profit to take the hit bit ... Besides Mrs Aju got itchy feet once we started hearing the ongoing Covid issues "ramping up" etc so our fate was sealed.
The latest emails suggest that the new MRA is just a guide and each individual loan will determine any MRA required but the increase is quite worrying none the less.
I'm guessing others who are selling will also have received said eMails.
Any views anyone.
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Post by carol167 on Mar 30, 2020 19:16:39 GMT
Yes, I requested something around 6.5k. Of which something over 5k had sold and I got the money and cashed it out. The remaining 1.5k was still in the process of being sold when I got the same sort of message saying that the adjustment was being hiked up to 5.6%.
I decided to cancel the sale.
Feeling lucky I got the majority out before they did that.
Unhappy that yet again a platform changes the rules without warning and in mid sale.
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Post by Ace on Mar 30, 2020 20:38:17 GMT
Yep, I got one too.
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Post by Deleted on Mar 30, 2020 21:07:51 GMT
I can't see that as being seen as treating customers fairly. Any change should be implemented for future selling requests, not retrospectively.
I would allow the sales to proceed, review the adjustments and put in a complaint if necessary, and be prepared to escalate to the Ombudsman.
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aju
Member of DD Central
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Post by aju on Mar 30, 2020 22:55:10 GMT
I can't see that as being seen as treating customers fairly. Any change should be implemented for future selling requests, not retrospectively. I would allow the sales to proceed, review the adjustments and put in a complaint if necessary, and be prepared to escalate to the Ombudsman. Yeah I'd agree with that one, I'm already looking to check it out and thankfully I took records of everything. edit: I'll also keep a close eye on when it actually start selling assuming it does of course, 14 days and not a sniff as yet  .
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jhma
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Post by jhma on Mar 31, 2020 8:54:40 GMT
Yes
I got the email on Friday afternoon; immediiately decided to cancel the sale but the 'cancel sale' link in the email did not work and I could not find how do cancedl on the website. Of course by that time the office was closed for telephone enquiries.
Next time I logged in I found that the sale had gone through at the hiked rate. Luckily I had only wanted to sell a part of the holding as a test.
Shabby.
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Post by fuzzyiceberg on Mar 31, 2020 9:28:04 GMT
I can't see that as being seen as treating customers fairly. Any change should be implemented for future selling requests, not retrospectively. I would allow the sales to proceed, review the adjustments and put in a complaint if necessary, and be prepared to escalate to the Ombudsman. Yeah I'd agree with that one, I'm already looking to check it out and thankfully I took records of everything. edit: I'll also keep a close eye on when it actually start selling assuming it does of course, 14 days and not a sniff as yet . Sorry - I have to disagree. Allowing sales through with the lower - non current - MRA would disadvantage whoever purchased your loans since they would be paying more than the current value of those loans. Obviously it is galling for those who wanted to exit but didn't do so in time - allowing for the numbers that wanted to exit simultaneously and the lags in the system, but you cannot argue that you are not getting a fair amount for your loans - assuming, of course, that Zopa's 'new' MRA accurately reflects the credit outlook for those loans.
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Greenwood2
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Post by Greenwood2 on Mar 31, 2020 13:35:25 GMT
I can't see that as being seen as treating customers fairly. Any change should be implemented for future selling requests, not retrospectively. I would allow the sales to proceed, review the adjustments and put in a complaint if necessary, and be prepared to escalate to the Ombudsman. What about the buyers, are they then forced to accept second hand loans at a lower rate than they could get for new loans? That is hardly fair. And the T&Cs are pretty clear that the seller is the one that has to cover the difference.
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Post by Deleted on Mar 31, 2020 14:17:49 GMT
Zopa quotes an estimated adjustment when you arrange the sale. If Zopa allows sales to go through on materially worse terms, it should make up the difference (and I have got them to do this, although not this year admittedly as I sold out a while back).
If not, it should cancel all pending sales and contact sellers to say terms have now changed and you can reapply to sell on the new terms if you wish.
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Post by fuzzyiceberg on Mar 31, 2020 15:19:30 GMT
Problem is if Z cancelled all sales then sellers will lose their place in the selling queue. I suspect Z tried to be fair by advising sellers that the MRA had changed so sellers could cancel sales if they wished.
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Post by Ace on Mar 31, 2020 16:18:48 GMT
I issued a request to sell all of my loans a while back (don't have a record of the actual date).
The sellable loans have now sold, 72% of what was requested.
It cost me total fees of 4.34% of what was sold (1% selling fee plus 3.34% interest credit fee).
It reduced the current XIRR on my two year investment (all in plus) from 4.91% to 3.50%.
I expect the final XIRR to be considerably lower, probably negative, by the time the remaining 28% of currently unreliable loans is dealt with.
I wish i had sold earlier, but I'm glad to have had a large part of my capital returned.
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