Zopa sells new batch of bad loans
Zopa has sold a fourth batch of bad loans to a debt recovery company.
The peer-to-peer lender declined to comment on the number of loans or the value but said borrowers would be treated fairly.
It has made similar sales in recent years to ensure investors are repaid faster rather than going through its own recoveries process.
“We use a combination of our in-house operations team and Financial Conduct Authority-regulated debt purchasing firms to ensure the best possible outcome for our customers,” a spokesman for the P2P lender said.
“Operating an in-house and outsourced solution enables us to provide our investors with a faster – and likely higher – recovery on some of their loans, whilst ensuring our loan customers are treated fairly and compassionately.”
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The platform’s historical performance page currently shows 0.6 per cent of Zopa Core loans made in 2017 are in default, rising to 1.6 per cent for those in 2018.
The figure is higher for its Zopa Plus product, at 2.1 per cent for loans originated in 2016, 5.5 per cent for 2017 and 4.3 per cent in 2018.
More recent figures from its latest public loanbook data as of October 2019 shows of 667,081 loans, 31,474 are listed as in default, equivalent to 4.7 per cent.
Another 6,694 are listed as late.
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