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Post by BrianC on May 25, 2017 14:54:03 GMT
Am I missing something here?
I have approx £13,700 in plus. Generally doing ok but this month defaults are so far just over half of my interest earned so my worst month.
I looked at a plus sellout as I'm losing faith and I could get £12,300 after a £124 fee.
That would leave me with about £1,300 still in Plus.
Am I right in thinking this £1300 would be all loans that are late or have missed payments? Therefore potentially all that £1300 or at least a fair chunk of it may never be returned if it all or mostly defaults.
This would mean even after all the interest I've previously received selling out of Plus now would leave me with a several hundred pound overall loss. Hardly a great investment! The only way I can see this changing is if I hold on to all my loans and hope the interest earned from the good ones makes up for the losses of the bad ones. Or am I missing something?
Plus is looking a worse product by the day. I now worry for Zopa as a company as they remove their safeguard altogether. Is this company committing commercial suicide?
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marie
Posts: 38 
Likes: 15
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Post by marie on May 25, 2017 15:35:48 GMT
I don't understand why people assume that just because a loan defaults, that money is lost.
The entire loan amount is taken off your earnings figure displayed on the summaries page, which makes the default look worse than it is. But lenders will still be receiving payments on at least a portion of those loans.
I think Zopa is making a mistake taking the entire defaulted loan amount off peoples earnings figure, because that is not what the reality is. And it's causing people to think that their portfolio is doing much worse than it is, causing people to overreact.
That's my opinion anyway.
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Post by gidoppp01 on May 25, 2017 15:53:24 GMT
I have just tried to get an estimate to sell out all my zopa plus loan. Not a happy bunny, can only sell out 96% and have to pay a 1% fee. At this rate, I need at least 5 months to break even with 4% loan stuck in late/arrear/default.
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marie
Posts: 38
Likes: 15
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Post by marie on May 25, 2017 15:58:58 GMT
We were all informed of the 1% fee that is in place when selling out of plus. It is stated very clearly on their website.
As for the loans you can't sell, this would be down to them being in areas. Some of them will get out of areas, and you can sell them when that happens.
It looks to me that a lot of people have not understood what Z+ is, before investing.
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Post by gidoppp01 on May 25, 2017 16:01:10 GMT
We were all informed of the 1% fee that is in place when selling out of plus. It is stated very clearly on their website. As for the loans you can't sell, this would be down to them being in areas. Some of them will get out of areas, and you can sell them when that happens. It looks to me that a lot of people have not understood what Z+ is, before investing. I check my loanbook, there's no defaults, just 11 manual repayment comments, but can't sell all the loans. Any explanation?
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marie
Posts: 38
Likes: 15
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Post by marie on May 25, 2017 16:02:33 GMT
We were all informed of the 1% fee that is in place when selling out of plus. It is stated very clearly on their website. As for the loans you can't sell, this would be down to them being in arrears. Some of them will get out of areas, and you can sell them when that happens. It looks to me that a lot of people have not understood what Z+ is, before investing. I check my loanbook, there's no defaults, just 11 manual repayment comments, but can't sell all the loans. Any explanation? In my comment I say "in arrears", not "defaulted". Do you have any sales in arrears? Edit: "arrears", not "areas"! English is not my first language, bare with me 
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Greenwood2
Member of DD Central
Posts: 4,384
Likes: 2,784
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Post by Greenwood2 on May 25, 2017 16:04:49 GMT
I don't understand why people assume that just because a loan defaults, that money is lost. The entire loan amount is taken off your earnings figure displayed on the summaries page, which makes the default look worse than it is. But lenders will still be receiving payments on at least a portion of those loans. I think Zopa is making a mistake taking the entire defaulted loan amount off peoples earnings figure, because that is not what the reality is. And it's causing people to think that their portfolio is doing much worse than it is, causing people to overreact. That's my opinion anyway. If and when they get payments back these are then taken off losses for the month. I'm still waiting for substantial recoveries to kick in, hopefully a few months after the big losses started, but I read somewhere Zopa only expect about 15% recoveries from defaults.
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Post by gidoppp01 on May 25, 2017 16:08:15 GMT
In my comment I say "in areas", not "defaulted". Do you have any sales in areas? Nope, just 2 arrears in column O out of 627 loans. There are 11 comments regarding manual repayment.
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marie
Posts: 38
Likes: 15
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Post by marie on May 25, 2017 16:11:08 GMT
In my comment I say "in areas", not "defaulted". Do you have any sales in areas? Nope, just 2 arrears in column O. There you go... I meant "arrears", English is not my first language sorry I'm not sure how big percentage of your portfolio that is, so only you can judge of that is a probable explanation.
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Greenwood2
Member of DD Central
Posts: 4,384
Likes: 2,784
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Post by Greenwood2 on May 25, 2017 16:15:30 GMT
I check my loanbook, there's no defaults, just 11 manual repayment comments, but can't sell all the loans. Any explanation? In my comment I say "in arrears", not "defaulted". Do you have any sales in arrears? Edit: "arrears", not "areas"! English is not my first language, bare with me Bear with me, bare with me is a whole other game.
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marie
Posts: 38
Likes: 15
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Post by marie on May 25, 2017 16:18:16 GMT
In my comment I say "in arrears", not "defaulted". Do you have any sales in arrears? Edit: "arrears", not "areas"! English is not my first language, bare with me Bear with me, bare with me is a whole other game. Arh I even paused before posting that but decided I was going to get it right this time without checking! Next time  We have a SharePoint site in work, where people add things I get wrong and ends up being funny 
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Post by wyndstryke on May 25, 2017 17:03:58 GMT
... Not a happy bunny, can only sell out 96% and have to pay a 1% fee. ... If I understand the recent Zopa news (IFISAs & Zopa Core) correctly, there's a possible one-month window of opportunity during July to move the majority of your money from ZopaPlus into a lower-risk Zopa Core IFISA without being charged the 1%. It'd still attract the 1% if you tried to convert it into cash, but you could get rid of the D and E markets from your portfolio (the unsaleable £1300 would still be in Z+). You'd need to check the small print. blog.zopa.com/2017/05/25/introducing-the-zopa-ifisa-and-zopa-core/(it doesn't actually say whether or not the ISA needs to be the same risk level as the original, so you'd have to confirm this)
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Post by gidoppp01 on May 25, 2017 17:16:44 GMT
To clarify, I only started Zopa Plus on mid April 2017.
Not being able to sell 100% loans, with only 2 missed payments and 11 manual repayments out of 627 loans is a joke. I can only receive 96% now if I pay 1% fee.
Looking on the Zopa risk data, I should be able to sell at least 99.4% loans with 0 defaults.
Year | Expected defaults at origination | Actual defaults so far |% of loans repaid to date | Revised projected defaults| Actual arrears (>45 days) | Risk markets available to retail investors
2017 | 4.89% | – | – |4.89% |– | A*- E
2016 | 4.14% |0.85% |19% |4.09% |0.56% |A*- E
2015 | 2.88% |2.15% |54% |2.91% |0.42% |A*- C
2014 | 2.06% |1.75% |78% |1.93% |0.14% |A*- C
2013 | 1.30% |0.67% |93% |0.71% |0.03% |A*- C
2012 | 1.26% |0.69% |99% |0.71% |0.01% |A*- C
Can someone point me out why I can only sell 96% loan within 60 days with only 2 missed payments?
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Post by wyndstryke on May 25, 2017 17:35:38 GMT
To clarify, I only started Zopa Plus on mid April 2017. Can someone point me out why I can only sell 96% loan within 60 days with only 2 missed payments? Putting money into Z+ or Z Classic and then pulling it out again quickly is always going to be painful - it's a long term investment. Zopa Access is the better vehicle for short-term investment. Problems with direct debits often happen on the first payment - these may only cause a payment delay of a few days but have the effect of permanently blocking that particular loan from being subsequently transferred (these are the ones marked as 'manual repayment'). When I first opened my Cahoot account, about 1/3 of the new DDs failed on the first attempt. Some took several tries before they worked.
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Post by gidoppp01 on May 25, 2017 18:14:24 GMT
To clarify, I only started Zopa Plus on mid April 2017. Can someone point me out why I can only sell 96% loan within 60 days with only 2 missed payments? Putting money into Z+ or Z Classic and then pulling it out again quickly is always going to be painful - it's a long term investment. Zopa Access is the better vehicle for short-term investment. Problems with direct debits often happen on the first payment - these may only cause a payment delay of a few days but have the effect of permanently blocking that particular loan from being subsequently transferred (these are the ones marked as 'manual repayment'). When I first opened my Cahoot account, about 1/3 of the new DDs failed on the first attempt. Some took several tries before they worked. I wasn't planning for short term investment. However, I fully understand the Zopa selling mechanism but didn't expect only be able to sell 96% of loans after investing for less than 60 days. Checking my whole loanbook and adding up carefully, only 1.35% of the actual loan amount has a history of missed payment, but the current arrears is only 0.04%. So, in theory, I should be able to sell at least 98.5% of the loan
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