Anybody lent wth Zopa?
10 October 2009, 04:10 PM
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Anybody lent wth Zopa?
Keep seeing this come up from time to time in the Telegraph money supplement. People seem to average a return of about 8%. Anybody tried it?
10 October 2009, 04:57 PM
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Yeah my mate has, and Im seeing him tonight so I can give you an update, but basically you decide how much money you want to lend out, what category of client you want to work with (ie how good a credit rating - done by zopa), what interest rate you want to get. Obviously higher risk people attract higher rate, and vice versa. The rate you can get varies day on day as demand fluctuates. You can see what people are bidding, how easily its being filled and make your decision. Then each month you get a payment from the borrower paid into your account less zopa fees
10 October 2009, 05:52 PM
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I've looked at this on and off for a few years, but when I've worked out the likely return including bad debt etc, it hasn't been that far ahead of the best fixed rate/standard savings accounts, so it just didn't look like it was worth the effort for so little extra [potential] return.
It now looks more tempting as the zopa returns have stayed about the same whereas fixed rate savings are well down... on the other hand I bet bad debts have gone up sharply with the zopa loans.
The other thing that put me off before is you could only lend for a 3 or 5 year term, so you've got the money tied up for a fair period. Not 100% this is still the case however.
If you have a dabble Deep, let us know how you get on
It now looks more tempting as the zopa returns have stayed about the same whereas fixed rate savings are well down... on the other hand I bet bad debts have gone up sharply with the zopa loans.
The other thing that put me off before is you could only lend for a 3 or 5 year term, so you've got the money tied up for a fair period. Not 100% this is still the case however.
If you have a dabble Deep, let us know how you get on
10 October 2009, 08:27 PM
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Thanks Warren, I'd be interested in your mate's feedback.
Pete, according to the Telegraph article, the bad debt level is low. Can't remember the exact figures but it seemed quite low. Also if you lend more than something like £1k its split between 50 different borrowers to decrease the risk of loss.
The downside is that its not covered by the FSA, so if the company goes bust no protection so you wouldn't put your life savings in it.
Pete, according to the Telegraph article, the bad debt level is low. Can't remember the exact figures but it seemed quite low. Also if you lend more than something like £1k its split between 50 different borrowers to decrease the risk of loss.
The downside is that its not covered by the FSA, so if the company goes bust no protection so you wouldn't put your life savings in it.
10 October 2009, 09:48 PM
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If its not covered by the FSA it could be one of those slow burning scams. All is fine at first so that more and more people use them, then when they get to critical mass they leg it with the profits.
Having no knowledge of the scheme at all I cannot really comment, other than the fact that since its not regulated it makes me very nervous.
Having no knowledge of the scheme at all I cannot really comment, other than the fact that since its not regulated it makes me very nervous.
11 October 2009, 07:09 AM
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If its not covered by the FSA it could be one of those slow burning scams. All is fine at first so that more and more people use them, then when they get to critical mass they leg it with the profits.
Having no knowledge of the scheme at all I cannot really comment, other than the fact that since its not regulated it makes me very nervous.
Having no knowledge of the scheme at all I cannot really comment, other than the fact that since its not regulated it makes me very nervous.
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11 October 2009, 09:45 AM
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11 October 2009, 10:04 AM
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11 October 2009, 02:02 PM
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Looking on the website the return on a 3year investment (the shortest term offered) is an average of 6.7% before bad debt, and you can get a 4.7% fixed rate. Investing £10k means an extra £200 over a year extra return, so call that £120 after 40% tax and say £100 after you take into account the bad debts from Zopa. I suppose thats over £300 extra on your investment over the 3 year period.. I guess it's a close call. Might be a bit of fun I suppose
11 October 2009, 02:13 PM
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Sorry for hi-jacking your thread.
If somebody (not me) had X amount of money to invest in such a venture, would he have to explain where the money came from ?
What is the ceiling before the lights go off ?
The reason I ask is....
I bought a Lexus is200 from a main dealer in Stockport a long time ago on behalf of my brother. After ringing the salesman and explaining to him that I was going to pay cash if the car was as he said it was, he said yes no problems see you soon etc.
So we travelled up, the car was mint, so I walked into the show room and asked for the sales guy Id spoken to earlier.
I entered the salesmans office. 'Hello we spoke earlier about the is200 Sport, he wants it'. I placed a Tesco carrier bag (my brothers choice, not mine ) on his desk, and said £18000, would you like to count it?
He began to cough and splutter, expaining that the showroom wasnt insured for that amount of cash.
I said to him that in our phone conversation he had said that cash would be fine.
He said we often get people on the phone offering cash, but in his time as a salesman they had never turned up. So to see two 18 stone scousers ( his words, not mine) turning up within a couple of hours of a phone call, with £18000 in cash stuffed in a Tesco's bag, and wanting the car there and then, was unusual to say the least!
Anyway the long and the short of it was that after a word with his senior salesman, the police were called (CID), without my brother and I being informed.
And a few questions were asked:
Where did the money come from?
Are you working?
Do you have a reciept for the withdrawal you have made from the bank?
Why did you decide to use cash rather than a cheque, or bankers draft?
They kept us for about 20 mins in the salesmans office, then after a few checks (even PNC checking my car) they left, satisfied that the money was not obtained from anything illegal, and we were who we said we were.
After all that the salesman still wouldnt take the money!
He took £9980 because he was insured for upto £10000 in cash, and asked us to return the next day to pay the balance. He apologised for having to call the police but explained that it was policy to do so.
Does the same thing happen when investing in certain ventures like you have mentioned ?
If somebody (not me) had X amount of money to invest in such a venture, would he have to explain where the money came from ?
What is the ceiling before the lights go off ?
The reason I ask is....
I bought a Lexus is200 from a main dealer in Stockport a long time ago on behalf of my brother. After ringing the salesman and explaining to him that I was going to pay cash if the car was as he said it was, he said yes no problems see you soon etc.
So we travelled up, the car was mint, so I walked into the show room and asked for the sales guy Id spoken to earlier.
I entered the salesmans office. 'Hello we spoke earlier about the is200 Sport, he wants it'. I placed a Tesco carrier bag (my brothers choice, not mine ) on his desk, and said £18000, would you like to count it?
He began to cough and splutter, expaining that the showroom wasnt insured for that amount of cash.
I said to him that in our phone conversation he had said that cash would be fine.
He said we often get people on the phone offering cash, but in his time as a salesman they had never turned up. So to see two 18 stone scousers ( his words, not mine) turning up within a couple of hours of a phone call, with £18000 in cash stuffed in a Tesco's bag, and wanting the car there and then, was unusual to say the least!
Anyway the long and the short of it was that after a word with his senior salesman, the police were called (CID), without my brother and I being informed.
And a few questions were asked:
Where did the money come from?
Are you working?
Do you have a reciept for the withdrawal you have made from the bank?
Why did you decide to use cash rather than a cheque, or bankers draft?
They kept us for about 20 mins in the salesmans office, then after a few checks (even PNC checking my car) they left, satisfied that the money was not obtained from anything illegal, and we were who we said we were.
After all that the salesman still wouldnt take the money!
He took £9980 because he was insured for upto £10000 in cash, and asked us to return the next day to pay the balance. He apologised for having to call the police but explained that it was policy to do so.
Does the same thing happen when investing in certain ventures like you have mentioned ?
Last edited by yoza; 11 October 2009 at 02:21 PM. Reason: to add the rest of story
11 October 2009, 09:15 PM
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Yoza, there are money laundering rules (that brown brought in under the guise of anti terrorist measures but really to raise tax). All that means, I think, is that you have to prove, beyond doubt, who you are when you deposit the money. They will not contact the police, but if the inland revenue ever investigates you, then the 'bank' will give them all your details.
Must say though mate, you sound well dodgy
Must say though mate, you sound well dodgy
11 October 2009, 09:20 PM
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Sorry for hi-jacking your thread.
If somebody (not me) had X amount of money to invest in such a venture, would he have to explain where the money came from ?
What is the ceiling before the lights go off ?
The reason I ask is....
I bought a Lexus is200 from a main dealer in Stockport a long time ago on behalf of my brother. After ringing the salesman and explaining to him that I was going to pay cash if the car was as he said it was, he said yes no problems see you soon etc.
So we travelled up, the car was mint, so I walked into the show room and asked for the sales guy Id spoken to earlier.
I entered the salesmans office. 'Hello we spoke earlier about the is200 Sport, he wants it'. I placed a Tesco carrier bag (my brothers choice, not mine ) on his desk, and said £18000, would you like to count it?
He began to cough and splutter, expaining that the showroom wasnt insured for that amount of cash.
I said to him that in our phone conversation he had said that cash would be fine.
He said we often get people on the phone offering cash, but in his time as a salesman they had never turned up. So to see two 18 stone scousers ( his words, not mine) turning up within a couple of hours of a phone call, with £18000 in cash stuffed in a Tesco's bag, and wanting the car there and then, was unusual to say the least!
Anyway the long and the short of it was that after a word with his senior salesman, the police were called (CID), without my brother and I being informed.
And a few questions were asked:
Where did the money come from?
Are you working?
Do you have a reciept for the withdrawal you have made from the bank?
Why did you decide to use cash rather than a cheque, or bankers draft?
They kept us for about 20 mins in the salesmans office, then after a few checks (even PNC checking my car) they left, satisfied that the money was not obtained from anything illegal, and we were who we said we were.
After all that the salesman still wouldnt take the money!
He took £9980 because he was insured for upto £10000 in cash, and asked us to return the next day to pay the balance. He apologised for having to call the police but explained that it was policy to do so.
Does the same thing happen when investing in certain ventures like you have mentioned ?
If somebody (not me) had X amount of money to invest in such a venture, would he have to explain where the money came from ?
What is the ceiling before the lights go off ?
The reason I ask is....
I bought a Lexus is200 from a main dealer in Stockport a long time ago on behalf of my brother. After ringing the salesman and explaining to him that I was going to pay cash if the car was as he said it was, he said yes no problems see you soon etc.
So we travelled up, the car was mint, so I walked into the show room and asked for the sales guy Id spoken to earlier.
I entered the salesmans office. 'Hello we spoke earlier about the is200 Sport, he wants it'. I placed a Tesco carrier bag (my brothers choice, not mine ) on his desk, and said £18000, would you like to count it?
He began to cough and splutter, expaining that the showroom wasnt insured for that amount of cash.
I said to him that in our phone conversation he had said that cash would be fine.
He said we often get people on the phone offering cash, but in his time as a salesman they had never turned up. So to see two 18 stone scousers ( his words, not mine) turning up within a couple of hours of a phone call, with £18000 in cash stuffed in a Tesco's bag, and wanting the car there and then, was unusual to say the least!
Anyway the long and the short of it was that after a word with his senior salesman, the police were called (CID), without my brother and I being informed.
And a few questions were asked:
Where did the money come from?
Are you working?
Do you have a reciept for the withdrawal you have made from the bank?
Why did you decide to use cash rather than a cheque, or bankers draft?
They kept us for about 20 mins in the salesmans office, then after a few checks (even PNC checking my car) they left, satisfied that the money was not obtained from anything illegal, and we were who we said we were.
After all that the salesman still wouldnt take the money!
He took £9980 because he was insured for upto £10000 in cash, and asked us to return the next day to pay the balance. He apologised for having to call the police but explained that it was policy to do so.
Does the same thing happen when investing in certain ventures like you have mentioned ?
Would it not have been easier to pay with your Switch Card?
11 October 2009, 10:03 PM
#14
Scooby Regular
very very strong rules regarding money laundering -- anyone one working in the finance industry has to understand what they mean and abide by them`
large amounts of cash will always raise suspicion and if in any doubt it is the responsibility of any person handling the cash and working in the banking industry to report it
contary to popular belief the finance industry is and always was highly regulated
large amounts of cash will always raise suspicion and if in any doubt it is the responsibility of any person handling the cash and working in the banking industry to report it
contary to popular belief the finance industry is and always was highly regulated
11 October 2009, 10:09 PM
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My brother didnt have a switch or even a bank account, I still dont think he has.
I could have put the money in my account and then switched maybe, but we were told, "Yeah, come up, no problems..."
I think I would have had the same problems depositing £18000 in my account anyway, same questions I should imagine.
Ive just seen alot of lightbulbs come on..
I could have put the money in my account and then switched maybe, but we were told, "Yeah, come up, no problems..."
I think I would have had the same problems depositing £18000 in my account anyway, same questions I should imagine.
Ive just seen alot of lightbulbs come on..
18 August 2010, 02:25 PM
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I would recommend that anyone interested read the succinct FAQ on Zopa's website: http://uk.zopa.com/ZopaWeb/public/he...nterested.html
This addresses many concerns raised here.
I know all companies say they are legitimate, but Zopa is regulated by the OFT (No. 563134) and has consumer credit licenses, something that can be externally verified on the OFT website. Just look at the public register of all consumer credit license holders. The OFT website also explains the degree of oversight it maintains in this business area.
If you were laundering money, would you invest in an organisation that is a member of CIFAS - a large UK anti-fraud association, and registered with the Office of the Information Commissioner (No. Z879078)?
This addresses many concerns raised here.
I know all companies say they are legitimate, but Zopa is regulated by the OFT (No. 563134) and has consumer credit licenses, something that can be externally verified on the OFT website. Just look at the public register of all consumer credit license holders. The OFT website also explains the degree of oversight it maintains in this business area.
If you were laundering money, would you invest in an organisation that is a member of CIFAS - a large UK anti-fraud association, and registered with the Office of the Information Commissioner (No. Z879078)?
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