Bad debt figures Options

[zopa_tom]

 Risk_Info_to_lenders200704030.zip ( 4.28K ) Number of downloads: 203
From Karen Wilshere, Zopa's Risk Director
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Hi there

We wanted to provide more transparency to all our Members around the level of bad debt in the Zopa markets.

Attached is a table that shows by quarter, by market, the actual level of bad debt since launch.

The bad debt level, expressed as an annual %, is calculated for each market in each period as follows:

Amount of outstanding borrowing written off or transferred for debt collection (£)
Total amount of money borrowed (£)

Borrowers who miss a repayment are transferred to collections immediately that they fail to make a payment and, after contact by Zopa, fail to rectify that missing payment; or where Zopa have been unable to contact the borrower. This is normally within 1 or 2 weeks of their missed payment..

We've also shown the expected level of bad debt that we provide lenders as guidance at the point their lending offers are made. As you can see, thus far the market and therefore your returns on a diversified portfolio, are well ahead of the expectations set.

We've also provided the usernames of the borrowers that have been written off or who are currently in collections (NB some borrowers who are in collections may fully recover in the future)

We will update this information Quarterly.

Karen