5 replies to this topic

[ZopaLender1]

Hi,

Can anyone help me understand what is happening with chasing the bad debt of one of my borrowers - the last payment made by the borrower was in January 2010 although the borrower defaulted a few times before this last payment.

Here are the most recent comments on MLB:
[07/02/11]Claim issued to County Court
[11/01/11]Letter before action sent to borrower
[21/12/2010]Account has now been assigned to P2PS Limited
[19/11/2010]Assignment to P2PS is due to take place on 16/12/2010
[20/09/2010]Option to assign debt to P2PS will take place around 18/10/2010
[17/09/2010] Borrower is now in default
[01/09/2010] Borrower has been notified of missed payment.
[01/09/10]A Notice of Default has been issued and the borrower will be "In Default" if no response is received within 14 days
[16/08/10] Zopa is reviewing the case with CRS to decide on further course of action. [01/08/2010] Borrower has been notified of missed payment.
[01/07/2010] Borrower has been notified of missed payment.
[14/06/10] A notice of Arrears has been issued to the borrower.
[01/06/2010] Borrower has been notified of missed payment

So, what happens next from here?

Thanks,

[marshall2k]

Hi ZopaLender1!

The Court will make its ruling. If the CCJ is issued and the borrower doesn't pay up a number of things can happen:

1. P2PS can apply for a charging order to secure debt on property.
2. P2PS can ask for an attachment of earnings so the borrower's employer deducts payments.
3. It is considered that there are no viable means of enforcement. Zopa have told me that these cases are reviewed regularly as they have 6 years to enforce.

I've seen 2 and 3 happen in my loan book.

[edit] I forget bailiffs. P2PS could ask for bailiffs to seize property.

Edited by marshall2k, 11 April 2011 - 16:33.

[MRC_London]

ZopaLender1, on 11 April 2011 - 12:59, said:

So, what happens next from here?

Thanks,

The next message you see in MLB is likely to be something along the lines of:

[dd/mm/11]Paperwork received from the Courts,can now go ahead and request Judgement against debtor

This appeared last week against another of my borrowers for which the court claim was issued on 7th Feb. The process seems horrendously slow ... but I suspect this is due to various "timeouts" whilst the borrower is allowed time to respond.

[Sealate]

Does anyone know when/if Zopa pass info to any/all credit reference agencies?

[ZopaLender1]

Thanks for all the replies - this certainly helps me to understand the next steps etc.

It's a shame there doesn't seem to be a rough timeline for these steps anywhere, as it does appear at times like nothing is happening and then all of sudden when you least expect it, a new comment status is added.

Thanks again,

[figures18]

Sealate, on 12 April 2011 - 02:13, said:

Does anyone know when/if Zopa pass info to any/all credit reference agencies?

It's my understanding that when a notice of default is issued by Zopa it's flagged on the borrowers credit file and visible to other lenders who the borrower may approach for further credit.