The Anonymous Widower

Zopa’s Bad Debts

I watch the bad debts I accumulate on Zopa very carefully.

At the end of 2011, I had 11 bad contracts, who owed me a total of 408.24 on a sum invested of about £40,000.  That’s just under one percent.

Not quite a year later, I have 17 bad contracts, owing £428.39.  But my book has grown to just under £90,000.  That’s now less than half of one percent.

I do suspect this reduction is due to Zopa’s checking of clients getting better as the year’s roll on. In fact, of the 17 contracts in default, 3 date from 2008, 8 from 2009, 6 from 2010 and none from the last two years.

But also two of my older bad debts have been paid off. Does this mean that Zopa has a good collection system or do people want to protect their credit ratings? It could be a bit of both. Sadly someone could have died and probate has come through.

October 13, 2012 - Posted by | Finance | , ,


  1. it could be any of those reasons, or it could be the type of people who choose to borrow through peer to peer lending are more circumspect with the amounts they borrow and more particular about repayments. I find people’s attitudes to debt vary widely.

    Comment by Liz P | October 14, 2012 | Reply

  2. […] The only downside is that lenders money could be at risk.  On the other hand, if you use a social lender sensibly, like I believe I have, you can minimise your losses.  In four years on Zopa, with tens of thousands invested, I’ve only got a few bad debts that total just over four hundred pounds. Possibly due to Zopa’s collection method, this figure is reducing. […]

    Pingback by Regional Finance « The Anonymous Widower | November 17, 2012 | Reply

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