Lending on uk.zopa.com

RaiderHammer

Hi

As anyone any comments about lending on uk.zopa.com

Is it safe to lend money there.

Are the company ( Zopa)legit and trustworty.

Thank you.

Browntoa

https://forums.moneysavingexpert.com/discussion/2438825

Gorgeous_George

Hi

Definitely 100% legit.

Lending is not covered by the FSCS guarantee however, if you limit your exposure to any single borrower to £10 it is highly unlikely that you would lose any money. Go to youtube and seach for Zopa. They have been mentioned many times on TV. Search Google and read the reports in the Times, Telegraph, Independent etc..

If you decide to join, search 'Zopa refer' on mse forums to find a way to share a referral fee.

GG

b3nton

Yeah I've heard these guys are OK. I kept meaning to join but never got round to it myself.

geordie_joe

RaiderHammer wrote: »

Hi

As anyone any comments about lending on uk.zopa.com

I'll give it a go

Is it safe to lend money there.

It's never "safe" to lend money to anyone.

Are the company ( Zopa)legit and trustworty.

I expect the company is legit, but the company won't have your money, the borrowers will.

Thank you.

Someone has said you are unlikely to lose money on Zopa, I would be happier if they had said "You are likely to make money on Zopa"

The idea behind Zopa seems to be, if you lend £100 to one person they may not pay it back, but if you lend £10 to ten people, most of them will pay it back. ( and the interest they pay will cover those who don't pay it back).

I'm not saying it is a bad idea, but before I lent money on their I would look carefully into the number of people who don't pay it back. And I wouldn't just trust what Zopa say, they take a cut so don't want to put off lenders by publishing figures that are too high.

I would also look at what happens when someone doesn't pay me back. Actually I did this, in the forum there is a post by crs, the "Debt Collectors" and they outline in detail what they do when someone doesn't pay. Basically, they try very hard to contact the person, and if they do manage to contact them they ask them to pay the money back. If the person says NO, they offer a reduced payment, if the person still says No they.........I don't know what they do next, because they don't say.

Have a look here http://talk.zopa.com//index.php?showtopic=5064

But read past the first bit which just tells you what they don't do, then you'll get to the bit that tells you what they will do.

Gorgeous_George

Ok, I am somewhat risk averse so my returns are more modest than some would boast. The following is a snapshot of my current loanbook...



I prefer the shorter term and lower risk markets.

GG