Are you tired of the old, established banking giants?
We have twice applied to Zopa for loans and both times they have turned us down. I, indeed we, have always had a excellent credit rating, have never defaulted on a loan, are mortgage free and have never filed for bankruptcy. We have a steady income and have continuously worked to manage our finances in an optimal way.
Actually, you couldn't have found more dependable, loyal, fastidious and reliable people to loan to than us and when I look at their losses over the years I just laugh as someone isn't making the sound lending judgments that they need to be making so we moved on.
What is the justification for the £124.50 charge on a £500 loan? I think this is far too high.
Mon, 21/06/2010 - 15:21
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Winners of this year’s most trusted personal finance provider and best personal loan provider for customer service, Zopa is the new banking phenomenon that aims to give power – and money back to the people through the practice of ‘social lending’.
The essence of social lending is that members can both lend and borrow money from fellow members at better interest rates than those offered by the banks.
Zopa acts as a regulatory body, classing people who want to borrow into different categories, according to their credit score. Lenders can then make offers of how much they’d like to lend to people on a particular category. To keep risk to a minimum, lenders can only loan small chunks to individuals, so for example one loan of £500 would be spread between at least 50 borrowers.
Borrowers have to pay Zopa a £124.50 transaction fee and lenders pay an annual service fee of 1% of their loan.
Would you feel happy using Zopa or have you already tried your hand at social lending? Have your say…