Are you guys shutting down too? Options

[bamalucky]

Zopa just pulled the plug on the USA site.

http://talk.zopa.com//index.php?showtopic=3082

[kirklean]

Zopa just pulled the plug on the USA site.

http://talk.zopa.com//index.php?showtopic=3082

Doesn't look as though Zopa have pulled the plug, more the individual credit unions, as part of the Stabilization Act (like the z for our American Cousins). I have just been on the US site and everything seems normal. I have however asked for one of the Zopa USA team members to provide more clarity to what is actually happening as I don't fully understand it either.
Oh, and the original question you have asked, the answer at the moment is no it doesn't look as though we are getting shut down either. I'd be very surprised if that is going to happen particularly as there is a tv spot to promote Zopa going out in the near future, there is fair bit of liquidity in the markets and listings is proving to be a very popular customer aquisition method at the moment. In times of banks struggling to borrow off each other and in turn convert loans for customers, now is the time that Zopa can increase it's own market share against these banking giants.

This post has been edited by kirklean: Oct 8 2008, 09:52 PM

[bamalucky]

Zopa USA site is up but the man who answered the phone says they are done in the USA.

As far as commercials on TV goes,Zopa just ran a contest in the USA giving away thousands of dollars only to fold up 8 days later.

This post has been edited by bamalucky: Oct 8 2008, 10:02 PM

[kirklean]

Zopa USA site is up but the man who answered the phone says they are done in the USA.

As far as commercials on TV goes,Zopa just ran a contest in the USA giving away thousands of dollars only to fold up 8 days later.

I am really struggling to find any info at all. Best waiting till our office staff get in touch with your guys across the water to find out what is going on.

[bamalucky]

I already talked to the Credit Union holding my Cd's.My money is safe,or as safe as any bank at this point.

Zopa never was much for lenders in the USA anyway...

Too bad..

[bamalucky]

Dear [me],

You invested money into a certificate of deposit with a partnership we established with Zopa. With recent changes in the American economic environment, Zopa has made the decision to discontinue their operations in the United States. We want to assure you that this partnership has in no way affected the stability of your deposits with Zopa or Affinity Plus. Your deposits are insured by the National Credit Union Administration (NCUA). If you would like more information on NCUA insurance, you can access our Web site at www.affinityplus.org.

With these changes, Zopa will no longer collect payments and disburse funds. Your money was and will remain on deposit with Affinity Plus with the following changes:

§ Servicing of your existing Zopa certificate of deposit will be transferred to your Affinity Plus membership.

§ You will continue to receive the same interest rate on your certificate of deposit.

§ The amount of your interest that you designated to help other members through Zopa will continue to be allocated to those members.

§ The maturity date will remain the same.

By Friday, October 10, you will be able to view and access your certificate of deposit through Access Plus online banking, STAR bank-by-phone, or at any Affinity Plus branch location. Upon the date of maturity, you can choose to reinvest your certificate into a new 12-month Affinity Plus certificate of deposit at the rates available at the time of maturity or you can explore other savings options. In addition, the Zopa social networking Web site will no longer be available as of October 9, 2008.

We continue to look for innovative ways for our members to not only connect with other members, but also exemplify the credit union philosophy of people helping people. We recently launched a new Participation Rewards Program that has many of those components. Please contact me with questions or any Affinity Plus branch at (800) 322-7228, (651) 291-3700, or by email at affinityplus@affinityplus.org. Thank you for your membership with Affinity Plus.

Sincerely,

Gwen Lohrke
Affinity Plus Federal Credit Union
Virtual Branch
Financial Service Officer

[duice]

In addition, the Zopa social networking Web site will no longer be available as of October 9, 2008.

Which is a reason why the management should not control the discussion board - it is vitally important in times of trouble to be able to find out what is going on

Edit by Duice

Sorry I did not mean that to be critical of ZOPA management in the UK, just an observation that good management does not fear open and honest discusion. Also the management in the UK are happy to contribute to that discussion.

This post has been edited by duice: Oct 9 2008, 08:19 AM

[Ledney]

Zopa should respond ASAP to this thread.

[kirklean]

Zopa should respond ASAP to this thread.

The request was put in for comment last night as Bama posted in the US section and the Lending section. We'll just have to wait until one of the team can prepare a response.

[giles]

Morning all

We obviously need to respond to this. The email from Affinity Plus is partially correct in that we are transferring our customers relationships to the credit union they either borrowed from or bought a CD from (invested in). We are NOT shutting the website today. As most of you know, Zopa's US operation has a very different model to that in the UK and Italy in that it works in partnership with financial institutions (the credit unions) rather than being a pure peer to peer marketplace as it is here and in Italy. So while our model is doing very well in current market conditions, the US has been adversely affected in a way that couldn't have been predicted when we launched and is no way the fault of our partners. For me, a real shame is that we weren't able to launch the original model over there for regulatory reasons, esp given what a great job the regulators have turned out to have been doing there over the last few years, but that is another story....

The decision has not been taken lightly, and has obviously been difficult for our US colleagues, but due to the current credit crisis we have decided to withdraw from the US marketplace. This decision will have no impact on Zopa's other activities in the UK, Italy and Asia. Zopa’s UK operation has experienced significant volume increases in 2008 with huge growth in new members and increasing lender returns, while continuing to maintain excellent credit quality – currently less than 0.5% of loans are affected by any kind of late payment issue, with actual losses below 0.04%. Zopa Italy has achieved the highest growth of any European peer-to-peer operation since its launch in January, and has recently launched the first secondary market for any peer-to-peer operation.

Zopa’s US customers’ deposit accounts continue to be insured by the NCUA up to $250,000, and servicing of those accounts as well as the loans will be assumed by the credit unions within 90 days.

Zopa looks forward to continuing to develop and expand its operation worldwide as it continues to offer investors a safe return on their investments and a better deal for borrowers, and remains optimistic that it can return to the US market when conditions permit.

I would like to thank our US colleagues for their hard work, dedication and the oustanding service they have provided for their customers. I'm sure you will all join me in wishing them the very best.

[pomma9649]

Morning all

We obviously need to respond to this.

many thanks for the prompt clarification CFO

[Deddington]

What a shame that after all the effort that went into finding a model that the USA regulators would wear only to find the Credit Unions get caught up in the Credit Crunch and stop lending to anyone.

Good to see prompt action to make sure the USA does not drain capital from the rest of the Zopa business but sad for the USA staff who must be gutted so soon into their new venture.

If money is that tight in the US it must be dragging almost all areas where loans are required to a halt. So unless they turn the taps on again very quickly many a big name will be going to the wall.

How about Ford or GM for starters?

[roger_at_zopa]

How about Ford or GM for starters?

They have their own government support, in the last month or 2 they have been granted £23B in low cost loans to allow
them to re-tool their plants. Both companies fit in the 'to big to fall' category for now.

The car makers in the EEC are now requesting the same type of support!!!

Roger

[PoohBah]

They have their own government support, in the last month or 2 they have been granted £23B in low cost loans to allow them to re-tool their plants. Both companies fit in the 'to big to fall' category for now.

Not for the first time. Remember Tom Paxton's song "I am changing my name to Chrysler"?

[pomma9649]

Not for the first time. Remember Tom Paxton's song "I am changing my name to Chrysler"?

hm..I wonder how many more of us remember Tom Paxton??

[bamalucky]

Why the hell were you having a contest 9 days ago suckering us into sinking more money into CD's?

Excuse me,but i don't buy that the Credit Unions were pulling out.

What I do buy is the USA model was shoddily implimented & made poor loan officers,as i frequently pointed out to Peter who i emailed many times pointing out borrowers who running the gambit of all the P@P lender sites all at the same time to get as much money as they could before it showed up on their credit report.A simple search of borrower user names almost always revealed a unique user name choice which could easily be checked to see if they had a request ongoing on multiple sites.

I know 1 borrower who's username is Rateladder who has a $25,000 Zopa loan,a $25,000 Prosper loan & a $25,000 lendingclub loan.

[xraider]

I have a CD through the USA site and called yesterday to get status. The person I spoke to LIED to me, and said that Zopa was business as usual.

Seeing on the Zopa UK website that Zopa is shutting down, when that hasn't been announced on the Zopa US website, and when that was flatly denied to me yesterday, makes me wonder about Zopa's candor.

Zopa, any response?

[pomma9649]

I have a CD through the USA site and called yesterday to get status. The person I spoke to LIED to me, and said that Zopa was business as usual.

Seeing on the Zopa UK website that Zopa is shutting down, when that hasn't been announced on the Zopa US website, and when that was flatly denied to me yesterday, makes me wonder about Zopa's candor.

Zopa, any response?

see post number 10 on this thread from our CFO..

[bamalucky]

see post number 10 on this thread from our CFO..

Why are we having to see #10 over here or anywhere else for that matter when you call & talk to them & they lie to you in person?

We shouldn't have to hunt up whats going on on a different website!

[112233]

mr CFO guy:

any plans to reenter the US market if the financial climate improves there?