taffy
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Post by taffy on Dec 7, 2021 16:31:27 GMT
If it is correct that several loans have been marked down to zero value as suggested by other comments, it is not such a fair or good outcome for investors. Please excuse my use of that term on a P/P forum. Given that Zopa is both authorised and regulated by the FCA, they should be overseeing the wind-down. Having loans in both Lendy and Funding Secure, I`m not holding my breath on that. However, I think it worth asking the FCA if that is the case and whether for once, they will ensure "investors" are treated fairly.
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Post by ruth77 on Dec 7, 2021 17:21:42 GMT
From what I can see, the only loans marked down to a face value of zero are those which have defaulted. All my loans in arrears still have a value equivalent to the outstanding balance.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Dec 7, 2021 17:45:26 GMT
Investors put their capital at risk. That's how investing works.
Some have argued in the past on here that p2p is saving. They're wrong.
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Post by ingenue on Dec 9, 2021 18:20:11 GMT
Investors put their capital at risk. That's how investing works.
Some have argued in the past on here that p2p is saving. They're wrong.
That's a little harsh. Isn't the OP questioning if it's fair for Zopa to assume possession of our defaulted loans for free? Surely in the history of the world some money has been recovered from a defaulter.
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Post by fuzzyiceberg on Dec 10, 2021 9:18:56 GMT
We know defaulted loans have some value. Zopa regularly sells them off for 5%-10% of outstanding amount. Zopas argumnet is that this loss is outweighed by them buying late loans (and indeed on-time loans) some of which would go on to default at full value. Wether this is true of course is untestable until the portfolio is fully wound up, and in any case is unlikley to be true for every investor. Frankly Zopa would have been better reputationally (although, not of course for their profits) to have sold defaults as before and credited investors.
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Greenwood2
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Post by Greenwood2 on Dec 10, 2021 12:23:06 GMT
I don't totally disagree with Zopa's 'swings and roundabouts' scenario that loans in trouble being bought at full value would usually outweigh the about 10% recovery on defaulted loans. I don't like the way it was presented, and it will disadvantage lenders who had already run their loan books down to virtually all defaulted. To be seen to be doing right by their lenders I think defaulted loans should have been valued at about 10% of face value.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Dec 10, 2021 12:34:10 GMT
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Post by ingenue on Dec 11, 2021 10:38:09 GMT
Well, yes, but perhaps not entirely apposite to the point at issue.
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aju
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Post by aju on Dec 12, 2021 13:11:38 GMT
We know defaulted loans have some value. Zopa regularly sells them off for 5%-10% of outstanding amount. Zopas argumnet is that this loss is outweighed by them buying late loans (and indeed on-time loans) some of which would go on to default at full value. Wether this is true of course is untestable until the portfolio is fully wound up, and in any case is unlikley to be true for every investor. Frankly Zopa would have been better reputationally (although, not of course for their profits) to have sold defaults as before and credited investors. I would agree with you to certain extent on the LATES's.. Sadly it's not so easy to see if Zopa is buying the lates. I have had a couple in the last few days finished. Just after the closure announcement and especially now that there is less data to see whether the lender paid up or whether Zopa bought them is not really obvious. I built a spreadsheet comparison tool last week but when i compared the most recent updates, against my marker loanbook taken the day they announced, they had changed the layout of the loanbooks (i guess someone moved the column - "Loan Value" - then all of a sudden they moved it back to it's more logical position older in last few days.) That said i'm guessing that they were lates from loans 2018 & 2019 dates and they Zopa is buying them up rather than the lender suddenly paying up!. (I don't know when they went late as the old info field that used to exist of sorts was dropped as it had fell into disrepute on accuracy grounds) They were both >90 days though.
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Post by fuzzyiceberg on Dec 13, 2021 15:51:32 GMT
It doesn't matter whether late loans have been bought by Zopa or have simply been repaid by borrowers. As long as they are repaid all is well.
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aju
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Post by aju on Dec 13, 2021 17:17:51 GMT
It doesn't matter whether late loans have been bought by Zopa or have simply been repaid by borrowers. As long as they are repaid all is well. Yep i'd certainly concur with that - i was just curious if i could figure it out. I assume that there are still payments being made by borrowers and the relevant processes to effect this are still being run. I was quite annoyed about the defaults being unceremoniously wiped but i'm sure that many of them are quite old anyway. That said they were still on the books for some reason I guess. I'm sure they will be upstanding and not just move Lates to defaults when they could if they so desired. The fact they are buying some of them indicates that they are showing some good faith but there is always the possibility they could move to defaults and be effectively lost in terms of funds.
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Post by df on Dec 13, 2021 20:22:40 GMT
It doesn't matter whether late loans have been bought by Zopa or have simply been repaid by borrowers. As long as they are repaid all is well. Yep i'd certainly concur with that - i was just curious if i could figure it out. I assume that there are still payments being made by borrowers and the relevant processes to effect this are still being run. I was quite annoyed about the defaults being unceremoniously wiped but i'm sure that many of them are quite old anyway. That said they were still on the books for some reason I guess. I'm sure they will be upstanding and not just move Lates to defaults when they could if they so desired. The fact they are buying some of them indicates that they are showing some good faith but there is always the possibility they could move to defaults and be effectively lost in terms of funds. I think they worked it all out and any possible losses are taken into consideration. p2p is a burden for the bank. I've set up auto withdrawal when they introduced it and haven't logged in since until now. My remaining balance is about 50% down from when I seen it last time, I guess that's the result of "defaults being unceremoniously wiped". Whatever happens to the final repayment, I'm in profit with Zopa. Z is on my happy ending list together with LB, RS, GS, WLU/FO, FC and HC
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Post by mfaxford on Dec 13, 2021 20:41:47 GMT
It doesn't matter whether late loans have been bought by Zopa or have simply been repaid by borrowers. As long as they are repaid all is well. The Friday update last week suggested the first lot of them buying loans will be this week and stated we should get an email to say when they've bought some loans. I've got a few copies of my loanbook downloaded so I can try and see when things have changed.
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taffy
Posts: 148
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Post by taffy on Dec 14, 2021 12:41:50 GMT
Investors put their capital at risk. That's how investing works.
Some have argued in the past on here that p2p is saving. They're wrong.
That's a little harsh. Isn't the OP questioning if it's fair for Zopa to assume possession of our defaulted loans for free? Surely in the history of the world some money has been recovered from a defaulter. When a loan defaults, that is unfortunate for the lender but to be expected of a percentage of loans. Those loans are marked down to zero value and effectively confiscated by a P/P Platform. There could be an issue if these loans are later sold to debt recovery agents and the proceeds retained. It`s a long time since I sat my Business Accounting papers (while upside down in New Zealand), but even there I do not recall the term “swings and roundabouts” being part of any accounting standard or procedure.
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Post by crabbyoldgit on Dec 15, 2021 11:03:18 GMT
Ah swings and roundabouts ,i remember those terms from my ex employer. It means being left swinging in the breeze while being led roundabout in circles by a ring through your nose.
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