Zopa - Default loans

[Frankstar123]

Hi All,

I've had a Peer to Peer Lending account with Zopa for 8+ years.

In that time i've had quite a lot of loans Default (In Zopas eyes this is anyone who misses 4 payments).

Has anyone on this forum ever received money after a loan has defaulted? I've never seen an example of some monies recovered from a default loan in all the time I've had an account with Zopa. I'm just wondering if anyone else has?

From Zopa Site
"Recoveries are payments which are collected after a loan has gone into default. Any payments which we recover will be passed back to investors, net of fees."

I'm also a bit concerned about some of the loans which have defaulted before a single payment has even been made; i do expect some defaults but crikey not before a single payment has even been made. Any thoughts on P2P lending; i'm no longer sure its right for me as defaults "appear" to be increasing....

Thanks

Frankie

[Frankstar123]

Hi,

Thanks for all the replies. Safeguard is no longer in place on new products.

Zopa removed this because you can now offset losses on P2P against any gains on Tax Returns.

The default loans are on the new products, and some occurred without a single payment...

Frankie

[Frankstar123]

In Zopa i've lost £40, the customers didnt even make a single payment..... :|

Current Status:

Missed payments
£40.9
12 borrowers (1.6%) have missed repayments (So no more defaults but potentially another 12 borrowers on the way)

I've been running my loan book down since February.

[Frankstar123]

Current return rates are 2.7% for A-C borrowers and 3.7% for A-E borrowers.

Most of my loads are between 2% and 10%, most fall between 5-6% A-B ratings customers.

Remember that banks headline rate of interest for loans only have to account for a certain percentage of customers for it to be a valid rate. My Credit rating was 999 but when i applied for a car loan the quote still came back 2% more than the headline rate.