The Lemon Fool

So, Zopa are closing their PP side. Their announcement says..
"Sadly, over the last few years, customer trust in P2P investing has been damaged by a small number of businesses whose approach led to material losses for customers investing in those platforms. Linked to this, the changing regulation in the sector has made it challenging to grow and remain commercially viable."

I do find this at odds with their closing of the system to new money because of long queues for existing investors to re-lend their money, which suggests that they were oversubscribed and investor confidence and growth was not a problem.

Perhaps they mean "We can make more money as a bank".

Paul

DrFfybes wrote:So, Zopa are closing their PP side. Their announcement says..
[i]P2P investing has been damaged by a small number of businesses whose approach led to material losses for customers investing in those platforms.
Paul

am now very glad I steered clear of them
It always sounded too good to be true

pje16 wrote:am now very glad I steered clear of them
It always sounded too good to be true

Initially Zopa had a "safeguard" fund, so your capital was more protected. Latterly even after defaults I've averaged just over 4% with my "early adopter bonus", which was pretty good. I hadn't seen any horror stories about others losing their investor's money, as I thought even if the platform went under the underlying loan agreements were between lender and borrower, so the Administrators would either sell the loans to another platform or lender.

In this case Zopa are buying them back at full value, so I will wait and see.

Paul

Thanks Paul
IIRC I looked at when it first came out, so may be it was different or more like;y memory is a bit hazy
cheers
Paul