Zopa - can no longer afford

nomorecc

Hi All

Unfortunately got myself into a sticky situation... I own my own house and also have a Zopa loan amongst other things that I am simply no longer able to afford paying due a huge change in circumstances.

I’ve set out a I&E and That I’ve sent to creditors already and have plans in place. However my agreement with Zopa was taken out in 2016 before they were FCA regulated, I’m concerned that if I contact them to offer token payments then they will not cooperate under the FCA guidelines, take me to court and cause hell for me.

Is this the case?

Please help!!!!!

[Deleted User]

Very unlikely.

Treat them as you would any other creditor.

foxy-stoat

What do you hope to gain from sending an I&E to the other creditors? If you cannot afford your debts then a DMP payment an option or IVA, you need to speak to Stepchange or similar organisation. How much equity is in your property?

nomorecc

I am to go onto a DMP.

Jointly owned mortgage, with a very large secured loan. This negative equity.

Looked into an IVA but not really affordable - have checked this out already.

Willing2Learn

Head on over to the DFW board and post up your SOA.

nomorecc

Will do thanks guys - would also really appreciate some advice as to where I stand!!

pvt

I really wouldn't worry unduly.

When I lent money via ZOPA they seemed to do remarkably little to chase borrowers who defaulted on their loans from me.

nomorecc

Hmmm why is that because the actually lenders are the investors I.e you and thus you must create the chasing?

pvt

nomorecc wrote: »

Hmmm why is that because the actually lenders are the investors I.e you and thus you must create the chasing?

A good point, except for the fact that ZOPA took a percentage of the interest earned to provide this chasing service...

iolanthe07

pvt wrote: »

I really wouldn't worry unduly.

When I lent money via ZOPA they seemed to do remarkably little to chase borrowers who defaulted on their loans from me.

I was on the verge of investing P2P and I'm glad I didn't for this very reason. I understand that one of them (Lendy?) went bust recently, and the financial pages warn of others in trouble. The returns look good, but you do not have the £80K government protection that you have with banks. I'm only getting 2.5% on my cash savings at the moment, which is pathetic, but at least its safe. Too many borrowers default on these loans to make them attractive to investors, imho.

pvt

Iolanthe,

I would give them a wide berth for a number of reasons, though in the case of ZOPA they currently build default protection into the rate you get, and consequently the rates are rather lacklustre.

Another point to consider is how long your money sits around earning SFA whilst waiting to be lent out.

And then there's the inflexibility - if you compare the rates with those for 3 or 5 year fixed term deposit accounts.

I won't be using P2P lending again, and wouldn't recommend it to others either.