I'm showing a late payer Options

[PoohBah]

Could ZOPA please check? Thanks

Raised for Zopa's attention.

[Ledney]

I have also had my first late payer flagged up to-day but there is something very wrong. It is from a listing that ended on 03/11/08 but it has been entered in MLB as being the 11/03/08. Could this be the reason that it is late causing a problem with the direct debit? Has everyone else with this borrower had the date input incorrectly? Could someone from ZOPA have a look at this please?

Looks like an American style date. Maybe MLB is using a universal format so will pick up your regional settings.

[adilowes]

Looks like an American style date. Maybe MLB is using a universal format so will pick up your regional settings.

It does sound like a date error issue but I am sure Zopa will sort it.

[ulisseuk]

Looks like an American style date. Maybe MLB is using a universal format so will pick up your regional settings.

Ledney, thank you very much. I had a better look at my records and indeed the date in MLB is in American stile format (MM/DD/YYYY). However this is the only date that is displayed in that format. Other offers are all in the right format (DD/MM/YYYY). Not a big issue, now that I know why. Thanks

[MikeS1531]

After having just checked MLB, you are in fact correct, and Zopa did not update the comments to reflect that. Not sure about the division of fund though. States Capital -£0.02 and interest £0.07.

I've got the same borrower, with a similar situation -ve capital, +ve interest. I'm guessing that this means that in your case, the total interest accrued since the previous payment was £0.09, but he only paid you £0.07, so the amount outstanding went up by £0.02? Does that make sense?

Perfect sense.

I have this borrower too. I think you're on the right track, but not quite interpreting the numbers correctly. There's a third number on the payment line, labelled 'Amount', and in kirklean's case it probably shows 5p. That should be the amount of the payment actually received. The 7p should be the interest accrued since the previous payment, which is why the outstanding balance is up by 2p.

My fingers are crossed that a payment was received yesterday and we'll see the credit on Monday.

The good news that only a tiny minority of those who go Late ever default.

It's nice to think that's the case, as a few more late payers have shown up in MLB in the last couple of days. My experience so far, however, suggests that while it may be a minority, it's far from tiny. I've had 29 borrowers miss a payment. Of those, only 15 have gotten back on track. Four have defaulted and one is making regular payments under an arrangement, but the payments are so low that they don't even cover the interest accruing each month so this borrower owes more now than they did when they missed their first payment. That leaves nine that are still in Late, three of which are very recent and six of which are with CRS.

I don't know whether this is representative, but I suspect it's pretty close as it's a pretty good size sample. There aren't a lot of Listings borrowers involved because I haven't made any Listings offers since May. The number of missed payments has increased noticeably in recent months and no doubt that's related to the overall economic situation, so it's likely to get worse before it gets better. This is a real concern for me, so I'm not lowering my offering rates until I see some improvement. At this point, my Defaults have wiped out 11% of the total interest I've earned from borrowers, and the Late amounts represent another 39%. If half of the Lates eventually default then I'll have lost about a third of my interest to Bad Debt. Between that and Zopa fees, my net return would be about 7%, which isn't very different from what I was earning from a risk-free building society account during the same period. This hasn't impressed me so far, but I'm willing to wait for a bit more 'history' to develop.

We'll all have to wait until Monday's large posting of payments received on the first of the month to see whether there's another lot of missed payments.

[kirklean]

I have this borrower too. I think you're on the right track, but not quite interpreting the numbers correctly. There's a third number on the payment line, labelled 'Amount', and in kirklean's case it probably shows 5p. That should be the amount of the payment actually received. The 7p should be the interest accrued since the previous payment, which is why the outstanding balance is up by 2p.

My fingers are crossed that a payment was received yesterday and we'll see the credit on Monday.


It's nice to think that's the case, as a few more late payers have shown up in MLB in the last couple of days. My experience so far, however, suggests that while it may be a minority, it's far from tiny. I've had 29 borrowers miss a payment. Of those, only 15 have gotten back on track. Four have defaulted and one is making regular payments under an arrangement, but the payments are so low that they don't even cover the interest accruing each month so this borrower owes more now than they did when they missed their first payment. That leaves nine that are still in Late, three of which are very recent and six of which are with CRS.

I don't know whether this is representative, but I suspect it's pretty close as it's a pretty good size sample. There aren't a lot of Listings borrowers involved because I haven't made any Listings offers since May. The number of missed payments has increased noticeably in recent months and no doubt that's related to the overall economic situation, so it's likely to get worse before it gets better. This is a real concern for me, so I'm not lowering my offering rates until I see some improvement. At this point, my Defaults have wiped out 11% of the total interest I've earned from borrowers, and the Late amounts represent another 39%. If half of the Lates eventually default then I'll have lost about a third of my interest to Bad Debt. Between that and Zopa fees, my net return would be about 7%, which isn't very different from what I was earning from a risk-free building society account during the same period. This hasn't impressed me so far, but I'm willing to wait for a bit more 'history' to develop.

We'll all have to wait until Monday's large posting of payments received on the first of the month to see whether there's another lot of missed payments.

I think I am rather fortunate in this respect that so far this is my first late payer (I did have one other but it was a DD issue that was quickly resolved). As I said, it wasn't for a huge amount either but I would rather have the remaining £17 odds back if it is all the same. I would even be willing to ignore the interest just to get the capital back

[wolfbag]

but I would rather have the remaining £17 odds back if it is all the same. I would even be willing to ignore the interest just to get the capital back

Shhhh dont give the borrowers ideas or theyll all be doing it ....

[easteregg]

Late payers has just gone above 1% of my total lending with my 10th person falling behind. Perhaps now is a good time to invest in debt collectors !

[peddars]

Late payers has just gone above 1% of my total lending with my 10th person falling behind. Perhaps now is a good time to invest in debt collectors !

Yes me too - I've started making a collection of late payers in markets as well !!

[The_alchemist]

Late payers has just gone above 1% of my total lending with my 10th person falling behind. Perhaps now is a good time to invest in debt collectors !

Hi Easteregg,


Sorry to hear about that,,, just out of curiosity and if it's not to nosey how many does 1% equate to

[gts-vogue]

Late payers has just gone above 1% of my total lending with my 10th person falling behind. Perhaps now is a good time to invest in debt collectors !

I have 2 late payers (1 markets - A* and 1 listings) plus 6 bad debts (all listings) - these amount to 1.68% of my total investment.

As a result of this, I do not feel able to reduce my rates again at present - this has had the knock on effect of stopping me lending, my last loan went out exactly 3 weeks ago today !!!

[The_alchemist]

I have 2 late payers (1 markets - A* and 1 listings) plus 6 bad debts (all listings) - these amount to 1.68% of my total investment.

As a result of this, I do not feel able to reduce my rates again at present - this has had the knock on effect of stopping me lending, my last loan went out exactly 3 weeks ago today !!!

Oh I didn't think it was getting that way on Zopa yet,,, I've only recently dipped my toe in the water so I'm sure it wont be to long before I get one of those showing up on my dashboard

[Ajax]

Perhaps now is a good time to invest in debt collectors !

I was thinking about getting a job with one of the big four (accounting firms) currently dealing with all the company administrations - a growth area at the moment, unfortunately

[peddars]

I was thinking about getting a job with one of the big four (accounting firms) currently dealing with all the company administrations - a growth area at the moment, unfortunately

Well yes - I was wondering the same! Over the past 3 months companies like Deloittes must have had a huge increase in work!

[ukcobra]

Well yes - I was wondering the same! Over the past 3 months companies like Deloittes must have had a huge increase in work!

I've had another late payer pop up. Now a total of 4 out of 132 (ish) All on 60 month loans, 3 C category 1 B.

3 Are in collections, 1 at Default already. I expect all 4 to end up defaulting.

As a result, I've stopped leanding to non A rated requests, and will stop putting more money back into the market.

Mark

[anndy]

I think I am rather fortunate in this respect that so far this is my first late payer (I did have one other but it was a DD issue that was quickly resolved). As I said, it wasn't for a huge amount either but I would rather have the remaining £17 odds back if it is all the same. I would even be willing to ignore the interest just to get the capital back

Well, I DID set hares running with my comment about having late payers suddenly appearing!! Perhaps Zopa 'Office' can tells us at what percentage rate the 'late payer' and others are running at - are they reading??
ANNDY

[Ledney]

Well, I DID set hares running with my comment about having late payers suddenly appearing!! Perhaps Zopa 'Office' can tells us at what percentage rate the 'late payer' and others are running at - are they reading??
ANNDY

There should be a new list soon, about the middle of the month.

This post has been edited by Ledney: Jan 6 2009, 04:27 PM

[elljay]

Current Risk Info is linked from this post.

[ashtondav]

Late payers now 2% of amount on loan. 1.5% of borrowers

Bad debt 0.3% of amount on loan - 1% of borrowers.

Been lending nearly 3 years, got 700 borrowers.

[Deddington]

Late payers - 1.5% of amount on loan. 1% of borrowers.

Bad debt - 0.25% of amount on loan - .5% of borrowers.

Been lending 3 years, had 1656 borrowers.

If the figures were rerun using ‘total amount lent out’ i.e. with the recycling of the repaid loans to new borrowers. The figurers would half for the ‘% of amount on loan’

Most of my lending is in markets (95%) so consequentially I expect my returns and late payers/defaulters will be lower than someone with a higher exposure to listings.

The interesting bit will be to see how that risk reward balance plays out.