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Have been lending on Zopa for about three years no problems whatsoever enjoying a nice return for the little bit of loot that I play about with there.

Since November:

Two 'A' market borrowers have defaulted. No payments at all.

One is two months late, from the listings section, so my fault for trying to get a higher rate, I don't think this is yet a default but probably soon will be.

One borrower entered into what I think was an IVA, Zopa kindly agreed to a lovely 23p in the pound return on her borrowings instead of nothing for me, she wasn't even in arrears!

This is out of a total of 78 borrowers, so a non paying rate of over 5%!

Does anyone else use this site? I would be interested to hear how you're getting on.

Green shoots? Not on my (small) loan book, can't sell it either and get my loot.

For balance I must admit I am still getting a return much higher than a savings account, so lending is still very profitable. If there was a secondary loan market I'd have all my savings there.

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Bump anyone else use zopa and seeing something similar?

Yes - I put in about £350 into the A* markets and have got 2 late payments already. I've not put any more cash in - if these late payments turn into defaults then I've effectively lost an entire year's interest from all the good payers :( .

I've actually achieved much higher than average interest rates from borrowers as well, so I imagine a few newbies have been burned alive - people were giving their money away at stupidly low rates earlier in the year.

It's only to be expected - rising unemployment gives banks the fear as probability of unemployment can't be predicted accurately and it tends to happen evenly through the different lending risk groups.

For my investments I'm now sticking to high yielding equity income funds, and doing the odd stock trade.

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