Greenwood2
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Post by Greenwood2 on Jul 23, 2020 7:19:18 GMT
My last Safeguard quarterly statement on 9th July showed between April 1st - June 30th 2020 the Safeguard Fund compensated me for £49.83 of defaulted loans. What is a quarterly statement are they emails? The only statements I'm working from are monthly and online. Am i missing something? Or just not fully reading all the emails properly  Yes emails, 'Name, here’s your quarterly Safeguard statement', I got one of these this month, the first time I've noticed them, I may just have not read them in the past as routine updates or they were not being sent or going to junk or nothing to report.
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aju
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Post by aju on Jul 23, 2020 7:45:39 GMT
What is a quarterly statement are they emails? The only statements I'm working from are monthly and online. Am i missing something? Or just not fully reading all the emails properly Yes emails, 'Name, here’s your quarterly Safeguard statement', I got one of these this month, the first time I've noticed them, I may just have not read them in the past as routine updates or they were not being sent or going to junk or nothing to report. Thanks, I was writing an update to my comments above as you were writing this one. I notice for us they started in Jan.
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Post by fuzzyiceberg on Jul 23, 2020 8:28:41 GMT
My last safeguard payment was 15 May. So presumably Zopa stopped them at some point after that. I have at least a dozen loans that should have been purchased by the Safeguard fund by now. There is no reference on the website to this halt in payments that I can find, presumably because they don't want to scare off investors. There was a statement about loans on a payment holiday not being defaulted and so not being purchased by the safeguard fund in the Zopa EMail of 20th May. There has been no statement that Safeguarded loans that have defaulted will not be purchased - I have at least half a dozen such loans.
My main objections are:
* Zopa has not been clear in what is happening with safeguard
* Zopa's actions have consistently been to benefit borrowers at the expense of lenders. For example I see no reason why interest should not accrue during any payment holiday.
But as I seem to be the only one concerned with this I'll leave it there.
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aju
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Post by aju on Jul 23, 2020 9:17:51 GMT
My last safeguard payment was 15 May. So presumably Zopa stopped them at some point after that. I have at least a dozen loans that should have been purchased by the Safeguard fund by now. There is no reference on the website to this halt in payments that I can find, presumably because they don't want to scare off investors. There was a statement about loans on a payment holiday not being defaulted and so not being purchased by the safeguard fund in the Zopa EMail of 20th May. There has been no statement that Safeguarded loans that have defaulted will not be purchased - I have at least half a dozen such loans.
My main objections are:
* Zopa has not been clear in what is happening with safeguard
* Zopa's actions have consistently been to benefit borrowers at the expense of lenders. For example I see no reason why interest should not accrue during any payment holiday.
But as I seem to be the only one concerned with this I'll leave it there. , I'm not sure anyone is not concerned about this, so far in my quick checks of SG loans I have not found "default" marked SG loans that have not been SG repayed all so far. If it affects me I will definitely be onto Zopa you can be sure of that, if it doesn't there is little I can do except support others on here. That said there is no reason I cannot send them a question regarding this though as for me if it is definitely the case they are not paying on actual defaults and SG has failed then its a serious concern as they should of course be informing everyone. benaj earlier suggest Zopa should be asked for an update on the status and position of the SG fund relative to the website page reference earlier. Mind you I notice that Zopa has had a major change in the last day or so with their colours and layouts, bloody awful on my 24 inch screen here but perhaps I need to make my screen look even more like a toy, oops sorry mobile product .. I have not noticed it before but today I noticed a message about the "Assignment" status for loans that are in the government forbearance rules, if one can call them that. I think that's what it said but I can't seem to find it now so heaven knows where I saw it. I have not as yet finished checking all our accounts due to time to check and Mrs Aju shopping (Online now, sadly she has discovered she can spend every couple of hours or so )
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aju
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Post by aju on Jul 23, 2020 11:32:44 GMT
Not sure it helps much but I scanned my statements database files for both myself and Mrs Aju for both ISA and Invest. last SG covered payouts we as follows. (Note the data was updated first few days in July and covers all statements records) Aju Invest latest SG close 27/5, with 1 SG closed for month
ISA latest SG close 29/5, with 3 SG closed for month
Mrs Aju Invest latest SG close 27/5, with 1 SG closed for month
ISA latest SG close 28/4, with 3 SG closed for month
We are selling loans in the ISA products at this time but in all cases we still have quite a bit of SG loans left both in Old Classic and also in Core. Not sure this helps but the fact there is nothing in June for any of these and also Mrs Aju in ISA had nothing in May are maybe notable. Its hard to tell I also checked our four loanbooks again up to early July and only found SG's in "Arrangement" none in "Default" states I did not read any comments as Zopa seems to be a bit erratic of late with the data in this free form. I will keep my eye out for any SG stuff moving to a Default status in our data going forward and I wish I could find the note I read earlier in but I did find this policy document from the SG email we received back in January - before the covid was known about I think. |
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Post by angel19 on Aug 1, 2020 10:15:19 GMT
Not sure if this helps, but ZOPA say ‘We've paused Safeguard pay-outs while we enact measures to support borrowers impacted by the Coronavirus. By offering payment freezes and reduced plans, we hope to get them back to full repayments when their situation normalises. For now, our collections team will work to make recoveries on your behalf for any Safeguard loans that do default.’.
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aju
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Post by aju on Aug 13, 2020 14:46:32 GMT
"SG loan moved to Collections but shows default in statement!"
So I'm sure this is just a quirk of timing and it will be resolved at some point but wondered if anyone has noticed that an SG loan can move to "collections" in loanbook but in statements it says it's a default. I'm sure it's just a staged thing but odd none the less.
Anyone else seen this its not marked as a "Default" in the loanbook as yet but it's only just happened in the last day or so and may be that its just waiting to move to the right status whatever that is. The borrower has missed couple of payment/s one a week or so ago and last month too but the comments don't really help that much otherwise. My last pull of the 8/8 shows it was in collections and last month it was "withdrawn".
Perhaps collections of 30-60 days not marked as "deferredpayments" are now being pushed into collections and assuming my money will be lost perhaps. Or worse all SG is stopped paying back. as someone said above
Anyone else got any thoughts?
edit: I've now checked it is not marked as having a covid issue ( a new flag in the loanbook csv data) according to today's csv i've just downloaded that is.
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benaj
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Post by benaj on Aug 13, 2020 15:54:02 GMT
www.zopa.com/invest/risk/safeguardJust checked Zopa regarding Safe Guard fund. Not great, but expected. Without checking the loanbook or knowing the latest % of arrears & defaults, its hard to say whether Z should follow RS footsteps to minimise Z investors risks
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aju
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Post by aju on Aug 13, 2020 16:35:09 GMT
www.zopa.com/invest/risk/safeguardJust checked Zopa regarding Safe Guard fund. Not great, but expected. Without checking the loanbook or knowing the latest % of arrears & defaults, it's hard to say whether Z should follow RS footsteps to minimise Z investors risks. They do not seem to flagging anything with a red flag indicator that I saw in that doc. They do not seem to be flagging any issues as such I can see either but that 200k fund does not look healthy to me going forward through the next 12 months or so. Of course I may not be reading it right.
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Post by angel19 on Nov 6, 2020 16:10:10 GMT
Safeguard about to be wound up.
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aju
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Post by aju on Nov 6, 2020 17:40:06 GMT
Safeguard about to be wound up. Not only that "Please be aware that we retired Safeguard products on 1 December 2017. Any Zopa investments taken up after that point do not come with Safeguard coverage." That will be interesting for anyone who may have bought other lenders loan sales items ... More info here secure2.zopa.com/lender/communication/safeguard_wind_down (Need to be logged in) Interestingly they seem to be suggesting that most people may only have £150 worth of loans anyway not sure thats the case for us!.
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Post by fuzzyiceberg on Nov 7, 2020 12:22:58 GMT
Safeguard about to be wound up. Not only that "Please be aware that we retired Safeguard products on 1 December 2017. Any Zopa investments taken up after that point do not come with Safeguard coverage." That will be interesting for anyone who may have bought other lenders loan sales items ... More info here secure2.zopa.com/lender/communication/safeguard_wind_down (Need to be logged in) Interestingly they seem to be suggesting that most people may only have £150 worth of loans anyway not sure thats the case for us!. Unusual as it is for me to defend Zopa I rather doubt their statement was intended to 'remove' safeguard from safeguard loans bought by investors from other investors post November 2017. I think they are making the point that no new safeguard loans have been originated since then. But they could have been clearer.
And I have a lot more than £150 is safeguard loans outstanding.
As an aside, it is precisely the possiblilty of this sort of tail event that made the FCA push to have these quasi-insurance schemes wound up by P2P platforms. Too many people believing that safeguard = guaranteed payout. As they are about to find out, it doesnt.
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keystone
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Post by keystone on Nov 7, 2020 12:39:59 GMT
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aju
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Post by aju on Nov 7, 2020 14:56:49 GMT
More than half of my remaining loans (more than £150 worth) with Zopa were acquired in the 1 week after 01/12/2017 all from other investors. I don't recall any warnings at any time that those loans weren't covered by safeguard. Anything marked as safeguard including the "SG" loans you received since the mentioned 2017 date were all covered it's just bad wording I feel. The were all covered until this announcement. As to what each of us gets of the divi up remains to be seen. Even with non SG covered defaults it has always been that once the loans are sold one gets a fractional part of any sold proceeds with the sale covered defaults subsequently marked as "SETTLED". As others will point out and Zopa has been at pains to point out the SG was never a guarantee from the day it started ff I remember correctly. Other platforms with similar products will be the same RS in particular is potentially sailing closer to the wind more recently!. Like fuzzyiceberg we too have many loans way above the mentioned £150, however, I have as yet to check our true exposure of both covid and non covid loan types affected so far SG wise. Zopa added a flag recently in the downloadable csv files that makes this easy to locate and their personal loanbook glossary info, available from the online loanbook screens, details this. Zopa does suggest covid marked SG loans will take a preference over non covid but they are yet to evaluate this value wise and I'm guessing it will not be obvious until we receive a non associated payment. If previous defaults sales are anything to go by then each lender will have no real way of aligning how they got an SG final payment - in default sales this is not aligned on a per loan affected basis. My own view at present is that Zopa are still a very viable company but we sold quite a lot of loans recently - I had tried to sell as few of the SG loans by working out the maximum we could sell by value for the minimum of sold SG covered loans. This turned out to be quite a bit of funds med 4 figures across our 4 accounts. That said the MRS also provided quite a hit too. We sold as many of the loans we could before zopa was not longer able to find saleable loans and were left with quite a bit of SG cover still . Now we have to weigh up selling these loans as soon as possible or keeping them and hoping that defaults do not increase considerably down the line. Unfortunately having made quite large sales recently we are left still with large numbers of unsaleable loans that are now forming quite high interest loss on a monthly basis >300% in some cases. This is more marked since covid rules stopped the immediate sale of SG covered loans too.
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keystone
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Post by keystone on Nov 9, 2020 10:04:26 GMT
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