Zopa in the current climate

Palm_Centro

Pity Zopa doesnt do mortgages

TechnoBadger

I think that the following thread is a good example of how friendly the Zopa experience can be:

http://talk.zopa.com//index.php?showtopic=3448&pid=40096&st=0&#entry40096

I'm one of his new lenders, and I do know that exiled CoogarUK doesn't do listings! Merry Christmas, by the way, Coogar!

CoogarUK

TechnoBadger wrote: »

I think that the following thread is a good example of how friendly the Zopa experience can be:

http://talk.zopa.com//index.php?showtopic=3448&pid=40096&st=0&#entry40096

I'm one of his new lenders, and I do know that exiled CoogarUK doesn't do listings! Merry Christmas, by the way, Coogar!

Listings will mainly all end in tears. Tread carefully.

Blah99

I'd never heard of Zopa before I saw this thread, so I thought I'd check it out.

I have to say, I simply don't understand why any would-be lender would put any money into Zopa for it to be given out? Zopa is conducting regulated financial transactions but apparently the FSA think they don't need to regulate them, they're using undocumented screening methods and the lending mechanism seems to be based on a dating website - women put photos of themselves up and write a long message saying how badly they need the money for debt consolidation/studies/having their nails done. Then a bunch of people put up tiny amounts of money (£10-£20) at ridiculous interest rates (20%), and somehow this whole pyramid scheme keeps running?

Zopa doesn't happen to be run by Mr Madoff's English cousin, does it?....

CoogarUK

Zopa don't actually hold our money. Which is a good job, as they are not authorised to do so.

Zopa say that they would love to be regulated but the nasty old FSA just keep refusing to do so.

Zopa used to be regulated for the PPI they sold to borrowers but they have since quit selling PPI.

Zopa recently quit the potentially lucrative US market, rather than be forced down the regulatory route it seems.

I don't think Zopa is a con though. I've paid money in and even taken a small amount out. And my borrower's repayments continue to be credited to my account.

halight

Hi
iv been drip feeding a small amout of money into zoopa over the last two months.
im finding it ok.
at the momoent im just playing with it really.
but it looks good.
i would rconmend it to anyone

all the best

Blah99

So I take it that everyone who is a lender on Zopa has a strong, reasoned argument as to why their type of lending is totally different to the lending that's taken down the major banks? And whilst the major banks tighten their belts and lending, Zopa has a very good model that explains why you should do the opposite?

For lenders, Zopa just seems insane in the current climate. My opinion, anyway.

CoogarUK

The banks lent money they didn't have, secured against assets that were grossly overvalued (or worthless, as many turned out).

easteregg_2

Blah99 wrote: »

So I take it that everyone who is a lender on Zopa has a strong, reasoned argument as to why their type of lending is totally different to the lending that's taken down the major banks? And whilst the major banks tighten their belts and lending, Zopa has a very good model that explains why you should do the opposite?

For lenders, Zopa just seems insane in the current climate. My opinion, anyway.

If you think Zopa lenders are mad then perhaps you should consider becomming a borrower. There are some very low rates available to borrowers at the moment.

opinions4u

CoogarUK wrote: »

The banks lent money they didn't have, secured against assets that were grossly overvalued (or worthless, as many turned out).

So what, exactly, are you saying Zopa is secured against?