Zopa. Neither a borrower nor a lender be!

zopa_Craig

Hi All,

I work for Zopa, and have been here since before launch. Although essentially i am working for them in IT, i can answer some of your questions here....

At Zopa, we are concentrating on changing the attitudes of the way people look after their finances, specifically the idea of cutting out the banks and helping other freeformers to move on in the world. Just so all of you know, we traul the web looking for valuble feedback like this thread and are grateful for the input, we really are...

486 is a good credit score, in our current system (which to be fair only differs slightly form the way a traditional bank would credit score you) that score puts you in the lowest risk market - which means you have access to low interest loans from as little as £1000 at arund 6.5% variable. As REESTIT MUTTON says above, although you can get £6000 at 5.9% from the Alliance and Leicester, you will be hard pushed to find £1000 at that rate - at Zopa, the market and money available in that market defines how much the loan costs - not the sliding scale of economy designed in a boardroom by well paid directors - our own lenders set their rates. Loans are matched form the bottom up, and its worked out on a first come fisrt serve basis and lenders offer a proportion of each loan from their 'offer' to each borrower. Lenders may have been waiting a while, but then this is new, and we are grateful for their support in our early life - its exactly these type of people who make these things happen, you know who you are - many thanks!!
We envisage this taking off very soon, as more and more people successfully borrow from us, our lenders become more involved in the process and we all learn how this is going to shape up. The design of the site changes week by week, new innovations and little gems of strategy are being released all the time, including a multimarket lending offer, where now say you invest £5000, that £5000 is instantly available at the rate you specified for each market, and is taken where the demand is - leading to higher liquidity and faster and bigger loans!!

I feel like i shoudl speak a little more about our credit scoring system and how we are working away form the traditions - essentially this is what Zopa is ALL about:

Every member is looked at at first on their credit score, which varies depending on which credit scoring company you use, so your score of 486 is good with us, but means absolutely nothing to barclays or natwest or any other lender, they have thewir own scoring criteria. We use Equifax, a US based company, Experian and Call credit, in an effort to diversify our knowledge and learn more about our members. Most high street lenders use just one or perhaps two. If we cannot build a reasonable picture, we do not just decline, we find out more. Taking into account things like their ebay feedback ratings, whether they pay their rent on time, and not just the simple yes or no criteria that we are all used to. As a freeformer, you will not fit into any category defined by the big institutions, we at Zopa, although currently hindered by regulation and a learning curve we are sharply climbing, belive that this will not only work, but will genuinely change the way people think about money and how to look after it. 95% of Zopa members say there are more important things in life than money, yet 93% are actively looking for ways to be smarter with their cash. This goes hand in hand with current trends of life that are changing the way we all live our lives financially and socially.


For more info, go to https://www.zopa.com, or get in touch with us at contactus@zopa.com.

Craig

IT Support - Zopa

andykirkland

Just received the following blurb from Zopa (I signed up for my credt score ).

Zopa is working brilliantly

* Rates from Zopa lenders are among the very best in the market – for example, borrow £3,000 for up to 12 months for only 5.9% APR typical (the average typical APR to borrow £3,000 for 12 months outside Zopa is 11.6% APR typical)
* You can repay at any time without paying extra for the privilege
* You pay your interest to people, not a bank
* We’ll really make an effort to understand you



We’d like to make you an offer

* We’d like to invite you to borrow or lend at Zopa – and we’ll pay you £50 for doing so
* And if you do this before 1 August 2005, we’ll also waive Zopa’s standard 1% exchange fee
* Simply sign back in at Zopa and lend or borrow



And we’d like you to tell your friends

* If you think Zopa is a good thing, please tell your friends so that they can also benefit – and you can share another £50 between you
* We’ve created Zopa 1-for-1 to make it easy for you to invite them. Simply click on www.zopa.com/ZopaWeb/Public/register.php"



So why wouldn’t you?

Not bothered about any of the sales patter apart from the £50 offer for taking out a loan. Now, as far as I can see there is nothing to stop me taking out a £1000 loan for 12 months (with no Zopa fee since it is waived before 1st August), getting my £50 and then paying back the loan (there is no early repayment charge - so only having to pay a small amount of interest for a couple of weeks).

There is also the offer of £25 each to refer someone else as long as they take out a loan as well (i.e. ditto of the above)?

Can anyone see a flaw in this plan?

Andy

CTT_2

Good idea only draw back is they will register a credit search that will stay on your file for 6 months.

greenwich

Has anybody here tried Zopa (https://www.zopa.com) either for borrowing or lending? Anybody have any experiences to share? My own impression is that you can get a loan at a not-too-bad rate if you are a borrower but it seems a spectacularly bad deal for lenders.

Woby_Tide

http://forums.moneysavingexpert.com/search.html?forumid=12

HelenR_3

Hi everyone

any advice on zopa ? i just found the site and am interested in a detailed explanation from a wise bod on here , in laymans terms if poss

Ta muchly


H
x

savvy

Hi HelenR
I've merged your thread here so that you can find lots of info on Zopa HTH.
savvy

HelenR_3

savvy wrote:

Hi HelenR
I've merged your thread here so that you can find lots of info on Zopa HTH.
savvy

sorry !!

all the info i need , and more

Thanks

apang

What's the best way to get a message to Martin?

I find it morally reprehensive that he suggests using Zopa to claim a free "credit score". I understand (but don't agree) with his views on using Zopa, and that's fine. But having publically berated a company, he goes on to rub salt in the wound by telling people to use their service to get a credit score for free, which meanwhile will be costing Zopa money.

I know that Martin aims to "screw over companies", but a new start up venture? It just doesn't seem fair.

I recall a friend's episode where Chandler was thinking about stealing an apple pie as the large corporation bakery would just replace it when the actual recipient didn't receive it. But on the box it said "Katie's Homemade Apple Pies". Not a big corporation, but a family-run business making a living.

Remember, two wrongs don't make a right. Getting revenge on companies is not the way forward.

MSE_Martin

apang you got your message through to me

I fundamentally disagree with virtually everything you said

Getting revenge on companies is the way forward. This is the 'ad-free, free to use, Consumer revenge site' its about redressing the balance. Zopa spent money on a clever marketing a product that simply isn't worth anyone using. The free credit score is a perfectly valid and legal thing. The moto of this site is "we spend our lives being screwed by companies for profit, this site is about 'legally' screwing them back)

Consumer revenge pure and simple and I'm very happy and proud to be doing it. I suspect if you don't like that, then this site isn't the place for you

Martin