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Social Lending/Borrowing


GenevaSaint
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I was listening to the radio yesterday and they mentioned a social borrowning/lending site called zopa.com Had a look today and I must admit I was surprised by the good rates for borrowing starting @ 7% You need to have a good credit history but if you do they beat most rates from banks.

 

The flip side is they also give you the ability to lend and get an average of 8% back.

 

If you have some spare cash to lend or need a good rate for borrowing have a look.

 

They mentioned other companies have also started running this sort of scheme but I've not looked for them. In the age of austerity and bank screwing people over this was a very pleasant find.

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I can't see where it is authorised and regulated by the Financial Services Authority, therefore i'd be wary of investing in this.

 

You're right Dune it's not at the moment although I think they're looking at getting better regulation. They do have a great track record at getting money recovered if people default and they spread the risk across multiple loans. Their default rate is .7% if I remember correctly, lower than most banks.

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You're right Dune it's not at the moment although I think they're looking at getting better regulation. They do have a great track record at getting money recovered if people default and they spread the risk across multiple loans. Their default rate is .7% if I remember correctly, lower than most banks.

 

That's all very well until the whole pack of cards comes tumbling down. They are essentially a bank, but a bank that would not receive help from the governemnt because they are not authorised or regulated. If you invested you could lose the lot.

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That's all very well until the whole pack of cards comes tumbling down. They are essentially a bank, but a bank that would not receive help from the governemnt because they are not authorised or regulated. If you invested you could lose the lot.

 

As you could in stocks or shares!

 

The risk is there for anyone to take as with you in your African mining companies. There are alot of people lending to this, have a look at the figures they loaned out. It's not for everyone but could be worth a punt for some......

Edited by GenevaSaint
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As you could in stocks or shares!

 

The risk is there for anyone to take as with you in your African mining companies. There are alot of people lending to this, have a look at the figures they loaned out. It's not for everyone but could be worth a punt for some......

 

As part of a mixed investment it *could* be worth a gamble, but I wouldn't touch it with a barge pole. NO FSA regulation = flashing danger lights.

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How long has this been running?

From a (very very brief) look over the website I don't like the look of it. It looks like a very good idea whilst everything is going well (er obviously) but there seems next to no recourse in the event of a problem other than courts.

 

For that reason, I'm out.

 

I'm sure I first heard about it over a year ago.

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Primary interest would be borrowing from them as they're FAR more competitive than the banks.

 

But as a concept I really like the idea. Cut out the middle men, limit fees and no early repayment fees.

 

They've been around since 2005 and have had a reasonable amount of press coverage from This is Money, Radio 2, The Times etc more recently.

 

http://uk.zopa.com/ZopaWeb/public/about-zopa/saying.html

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