Peer-to-peer lending analyst 4th Way has stopped providing ratings for Zopa, claiming its submissions are too sporadic.
The analyst provides a Plus Rating out of three based on an assessment of returns on offer by a lender and the risk of losses.
Its aim is to give potential P2P investors an idea of the risk and returns available on platforms.
They are only rated if they provided regular data and are doing new lending as well as if they have a long enough track record.
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The world’s oldest P2P lender previously had an “exceptional” rating of three out of three but is now no longer being rated.
“(Zopa) provides a full picture showing the record of every loan its approved too sporadically for us to conduct all the research and checks on data voracity that we do today,” 4th Way said.
“If we consistently receive data, we have more opportunity to spot errors, inconsistencies or data manipulation, and we can do better models of the loans.
“Regular data submissions are therefore a basic requirement that all P2P lending companies must comply with in order to maintain a 4thWay Plus Rating.”
Zopa is still accepting new investors and is understood to be doing new lending.
“We provide in-depth data to our investors that gives them a dedicated overview of all their individual loans and the performance of their entire loan book,” a statement from Zopa said.
“We also provide them with regular updates on our overall performance.
“All external disclosures that we provide are in line with the FCA’s recommendations.”
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There are several other P2P lenders who aren’t rated due to a lack of information including Relendex, Rebuildingsociety and ArchOver.
4th Way says unrated platforms may still provide “exciting opportunities” but require a “greater level of attention to detail.”
Lending Works and LendingCrowd have been removed from the list as they aren’t currently doing new lending.
RateSetter is no longer rated and 4th Way said Funding Circle’s rating were removed in 2018 when it stopped providing data, which coincided with when it became a public company.
Proplend, Kuflink, CrowdProperty and Assetz Capital are among lenders with “exceptional” ratings of three out of three.
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