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Post by overthehill on Dec 7, 2021 14:43:17 GMT
What caught my eye was this line given as part of the reasons for closure... 'Linked to this, the changing regulation in the sector has made it challenging to grow and remain commercially viable.' That, to me, implies that P2P is being deliberately regulated out of existence. Maybe that's because to FCA are so useless (or under-funded) at keeping a closer eye on the rogues that is better to make if difficult for P2p to exist at all. Or maybe the banks didn't like the competition! P2P came into existence mostly because the banks were not lending as they repaired their balance sheets following the 2007/8 financial crash. Now they have fixed their problems they want P2P gone. Always the same for the little guy's like me - used, abused and then abandoned.
Zopa BS and excuses slagging off the industry that has served them so well now that they are exiting to a direct competitor industry. It's been a long term profit driven plan, now they can pay 1.36% for their high risk band E loans or whatever they call them.
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trium
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Post by trium on Dec 7, 2021 14:53:34 GMT
I am annoyed to find that I am not now able to replace funds withdrawn under Flexible ISA rules, not even by transferring from my standard account.
Further, it's unclear whether interim ISA transfers out have been suspended as the text implies that a single transfer of the whole ISA must be done at the end.
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Post by c64 on Dec 7, 2021 16:14:20 GMT
I am annoyed to find that I am not now able to replace funds withdrawn under Flexible ISA rules, not even by transferring from my standard account. Further, it's unclear whether interim ISA transfers out have been suspended as the text implies that a single transfer of the whole ISA must be done at the end. It is worth trying to fix this. I had a large outstanding piece of funds to replace (withdrawn since April 2021, but prior years' funds). When they suspended new incoming funds I asked about this, and they said that with some prearrangement they would make an exception and accept replacement up to that limit. A couple of weeks ago I mailed them again to make sure the funds wouldn't be returned, got an OK, and sent the money. So it worked fine, but it won't if no-one has manually over-ridden the automatic refusal.
I now intend to transfer to iWeb, who take so long over such matters that waiting for end Jan will make not one jot of difference. I imagine the pile of forms at the Zopa end will soon hobble any attempt to pre-empt that date with an interim transfer anyway.
Ah well, face value for late loans is not bad. But I bet they will be uncommonly assiduous in getting defaults declared before sale.
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aju
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Post by aju on Dec 7, 2021 16:18:20 GMT
I never lost a penny on ratesetter's closure. In fact we never lost anything whilst we were with them (nearly 3 years as we came late to that party). Neither did I. Or anyone else for that matter. Nor did I say you did. Bad grammar apologies i was not for one minute suggesting you said that ...
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Post by ruth77 on Dec 7, 2021 17:25:35 GMT
Back in the summer I was so concerned about the lack of queue movement, I asked "Is Zopa considering pulling out of the peer to peer market in favour of the banking market?". The response was "We are still dedicated to having our P2P offerings being an integral part of the Zopa business model and products offered by Zopa bank are just a part of the Zopa package in products that we offer. We are not intending on leaving the P2P market.".
How times change!!
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scooter
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Post by scooter on Dec 7, 2021 17:51:37 GMT
I have very little left and am not bothered by this, but the idea suggested that they are doing it because "customer trust in P2P investing has been damaged by a small number of businesses whose approach led to material losses for customers" is something they should include themselves in. My investment was covered by the Shield, until it wasn't.... I'm sure it was all in the small print but really only lawyers or those that wrote the small print could ever understand how to interpret small print for every eventuality. I think they should get off their high horse.
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Post by optymystic on Dec 7, 2021 18:08:50 GMT
One of the major doctrines to emerge from the great financial crash of 2009 was that only investment banking was really profitable warranting mega bonuses whereas retail banking was unprofitable and only to be rewarded with derisory minimal wages. This despite the fact that the investment banks then lobbied vigorously and successfully to hang on to access to the supplies of cash with which retail banking supplied them and prevent the Vickers/Volcker recommendations being fully enacted.
But what do we find here? With our cash deposits and a fair few million £s from J R********d bank, Zopa is taking its retail investment portfolio into its retail banking operation. It doesn't do commercial lending or at least it hasn't until now. Someone must think that retail banking, particularly when free of high street rents is a profitable enterprise.
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Post by optymystic on Dec 7, 2021 18:10:14 GMT
I wonder if this will be any good. I don't have high hopes. I'm sure the current Zopa savings offering is a reliable guide.
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jane
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Post by jane on Dec 7, 2021 19:24:38 GMT
According the the Zopa wind down plan (https://www.zopa.com/invest/risk/contingency)
They can:
The email states they will be starting to buy up the loans in December. So the 30 days notice has not been give. Also we are not being given the option to opt out of the sale and retain our loans. Guess terms and conditions count for nothing these days.
Can't see what incentive they have to bother collecting any repayments now. More more profitable to just mark them off as defaulted buy them for £0.00 and then get to work on collecting the repayments.
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Post by kvd on Dec 8, 2021 7:18:57 GMT
Another P-P becomes a bank then decides to bin the folk who helped build it so it can keep the profits itself. Ratesetter did it, now zopa have done it to me. Yes it feels personal! Pah! Ratesetter were bought out metro bank, zopa have bought out their investment arm themselves. So it’s really very different Also RS we’re never going to survive on a long term basis if they kept funding investors’ defaults out of their own pocket. From what I can gather, it’s a decision that was made and reached that was the best for the business and meant there were no job losses So you have to move funds elsewhere who cares? You can speak to all your contacts at zopa all you like but from the responses I’ve received from managers and customer service is exceptions aren’t even being made and the decision is final
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Post by kvd on Dec 8, 2021 7:19:32 GMT
FAQs make clear they will be aquiring defaulted loans for £0 and there will not be another sale. They say they believe the losses to investors of not having the dafulted loans sold at value will be outweighed by Zopa acquiring late loans at face value. What is not clear (to me anyway) is whether they will be dafaulting more loans between now and 31st January or not.
The writing has been on the wall for some time now and this was predicted, although I thought they would simply stop new investments and let the loans run off. This is definitely 'cleaner', although it robs us of a c4% return on our existing loans over their remaining life, so lets be clear Zopa are not really doing us a favour.
This is the end of the road for P2P for me - I am not interested in the remaining participants. It was fun at the beginning when we could pick loans etc, much less so in recent years. I think the lesson is that private equity and big money is not going to allow small punters to make decent returns which they can take for themselves. I wish Zopa bank well, but fail to see what competitive edge they have over many other such outfits: maybe the Zopa 'name' and loan servicing infrastructure is worth something.
That's a bit cheeky, saying in the large print they will be bought at face value and then in the small print that the face value is zero! Might as well have said that they are not included.
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Post by kvd on Dec 8, 2021 7:20:32 GMT
What caught my eye was this line given as part of the reasons for closure... 'Linked to this, the changing regulation in the sector has made it challenging to grow and remain commercially viable.' That, to me, implies that P2P is being deliberately regulated out of existence. Maybe that's because to FCA are so useless (or under-funded) at keeping a closer eye on the rogues that is better to make if difficult for P2p to exist at all. Or maybe the banks didn't like the competition! P2P came into existence mostly because the banks were not lending as they repaired their balance sheets following the 2007/8 financial crash. Now they have fixed their problems they want P2P gone. Always the same for the little guy's like me - used, abused and then abandoned.
Zopa BS and excuses slagging off the industry that has served them so well now that they are exiting to a direct competitor industry. It's been a long term profit driven plan, now they can pay 1.36% for their high risk band E loans or whatever they call them.
Loans at face value and defaulted loans at 0. The two are different and really depends on how healthy your loan book is
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Post by kvd on Dec 8, 2021 7:21:49 GMT
According the the Zopa wind down plan (https://www.zopa.com/invest/risk/contingency) They can: The email states they will be starting to buy up the loans in December. So the 30 days notice has not been give. Also we are not being given the option to opt out of the sale and retain our loans. Guess terms and conditions count for nothing these days. Can't see what incentive they have to bother collecting any repayments now. More more profitable to just mark them off as defaulted buy them for £0.00 and then get to work on collecting the repayments. You can’t opt out. This isn’t a investment is winding down for others and not for Jane. It’s happening for everyone and it’s in the principles. Learn to accept no.
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dave4
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Post by dave4 on Dec 8, 2021 8:42:54 GMT
My money is on Assetzcapital being the next one. That would be sad but loans from them have been thin on the ground for a long time now. Would you know if they use a lot on institutional money now and do not need us any more ? AC's recent e mail publicity pointed investors towards Assetz Exchange.
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ashtondav
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Post by ashtondav on Dec 8, 2021 9:13:15 GMT
Maybe I was wrong. CEO of assetzcapital said to p2p news on hearing this:
“ And we remain open to any Zopa investors who wish to move over to ourselves.”
Hmmm. Watch this space.
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