Zopa in the current climate

jamesd

McPete, thanks for taking the trouble to follow the link I gave to what I was quoting.

Dooooooooooooooonut, have you heard a rumour about a Perry Como special edition of Guitar Hero?

CoogarUK wrote: »

Now instead of assuming, you're putting words into Zopa's mouth.

It's on the page you get to if you click on the link in the box on the home page to find out more about lending.

The fee increased from 0.5% to 1% over the summer and if they just added the 0.5% fee increase then they will have understated the return by about 0.34%*.

So depending on just how they worked out the number they give I can see sensible alternative values anywhere from 0.16% lower (with bad debt, old fee) to 0.34% higher (with bad debt, new fee).

Or something else if they also add in some number for the average balance in the holding accounts and getting the holding account interest rate, but they are trying to write about returns from lending, so that misses the point that they are trying to make. Makes sense for lenders to allow for this, though -it can be significant if a high proportion of your money at Zopa is in the holding account for a long time.

I suggest that you ask Zopa to tell you more about the number you say you don't believe.

How did you do over the last year? Better or worse than 9.1%? Are you still offering money to borrowers at Zopa yourself?

* 0.34 is because I estimate the bad debt rate for the year to be no higher than 0.16%, using a calculation that's boringly complex using old and new bad debt spreadsheets and estimating the total value of loans outstanding.

CoogarUK

jamesd wrote: »

I suggest that you ask Zopa to tell you more about the number you say you don't believe.

It's not a question of whether or not I believe anything. It's the fact that the number Zopa presents its the home page - that's the page that gives every visitor their first impression of Zopa - is misleading. No link required.

A properly regulated financial institution would not be allowed to get away with it.

Potential Zopa investors do not deserve to be fooled by the spin only to discover the facts after several months experience :cool:

jamesd

It looks like a reasonable number to me for lending rates. If you ask them what it includes I'd be interested in knowing the answer.

So, how did you do? Better or worse than that number?

CoogarUK

jamesd wrote: »

If you ask them what it includes I'd be interested in knowing the answer.

There's not much point in asking Zopa for factual information as all you're likely to get back is more positive spin. Best to do your own research

Here's another instance of Zopa spin, for those not familiar with the set-up over there:-

A glance at their published total membership will show a figure in excess of 200k but if you have the audacity to ask zopa how many of those members are still active, i.e. currently lending or borrowing, they will almost certainly go very coy and cite the "classified, commercially sensitive information" line.

Best estimates are about 1 percent of the quoted figure.

greenface

CoogarUK wrote: »

There's not much point in asking Zopa for factual information as all you're likely to get back is more positive spin. Best to do your own research

Here's another instance of Zopa spin, for those not familiar with the set-up over there:-

A glance at their published total membership will show a figure in excess of 200k but if you have the audacity to ask zopa how many of those members are still active, i.e. currently lending or borrowing, they will almost certainly go very coy and cite the "classified, commercially sensitive information" line.

Best estimates are about 1 percent of the quoted figure.

Thats the problem when you ask for factual information you only get given answers to part of the question that they want to give. Without reading or refusing to answer in full. Typical spin. Dont we all hate that ..#

Oh !! Jamesd has asked a couple of times now how you are doing with Zopa and just a better or worst than the % asked rather than ignoring that part of the same question you answer or just say non of your damn business .Either way Spin dont we hate it <

CoogarUK

greenface wrote: »

Spin dont we hate it <

Yes, and Zopa thrives on it.

jamesd

CoogarUK wrote: »

A glance at their published total membership will show a figure in excess of 200k but if you have the audacity to ask zopa how many of those members are still active, i.e. currently lending or borrowing

You think there's something wrong with claims like "Members: 433,781" on the forum home page here if all of them haven't posted recently?

Our host here isn't doing anything wrong to post that number and nor is Zopa doing anything wrong to post its own membership count.

CoogarUK wrote: »

they will almost certainly go very coy and cite the "classified, commercially sensitive information" line.

The weekly market data spreadsheet tells the accounts for every offer that's active in the markets and gives every application. So count the number of different accounts making offers. Since you asked for them to be archived it's even easy now to go back and get old ones and see how it changes over time if you like.

The monthly bad debt spreadsheet gives the total number of loans that have been made for each market. Not quite the active loan count but close enough for many purposes.

CoogarUK

jamesd wrote: »

The monthly bad debt spreadsheet gives the total number of loans that have been made for each market. Not quite the active loan count but close enough for many purposes.

So why then do Zopa always refuse to come up with definitive figures for active members on the basis I already stated - "Sorry, that's commercially sensitive information which we will not divulge" - each and every time the question is asked by an inquisitive member?

Unless of course they are trying to hide something.

easteregg_2

CoogarUK wrote: »

So why then do Zopa always refuse to come up with definitive figures for active members on the basis I already stated - "Sorry, that's commercially sensitive information which we will not divulge" - each and every time the question is asked by an inquisitive member?

Unless of course they are trying to hide something.

While Zopa do not disclose this information, it is easy to find out from the weekly spreadsheets and bad debt information. I'm sure other companies would also not disclose comparible information.

CoogarUK

easteregg wrote: »

I'm sure other companies would also not disclose comparible information.

Not if their figures are poor :cool: