Zopa started with great promise delivering better ...

Zopa started with great promise delivering better rates of return than could be achieved over standard interest rates offered by other UK lending institutions. However as time passed the level of bad debts increased and month on month the regularity of the bad debts debited from the amount invested outstripped the interest received. We therefore decided to turn off all new lending and remit back to our nominated account the proceeds on a monthly basis. Whilst we expected an annualized return of circa 5% the longer time passes the rate of return expected ratchets downwards to considerably less. In precis initial deposits made in May 2016 and with each passing month an escalation of bad debt materializes which diminishes the returns. The uncertainty associated with this lending is simply not all it is cracked up to be and anyone investing ought to consider these facts.

From the lenders perspective it is a "no lose" situation as they lend out investors funds and the entire bad debt amount or default is then deducted from the investor who has lent Zopa their money . Zopa incur no risk whatsoever lending out your funds .

The subsequent follow up of the debts process is suspect for the amounts retrieved are pitiful compared with the large slices of debt they deduct as bad debt/defaults .

To add salt to such a wound Zopa charge 1% fee for any withdrawal and in our case there is only one winner, and that is Zopa themselves to date.

The fact that they have focused on ISA's and FCA regulation and in marketing their products ,sees them in our opinion taking their eye of collections. One can only ask if it were their own money that was in default with their loans would they chase them more vigorously for payment?. The answer is clear and that is reflected in our own case.