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Bad Debt
Bad Debt
!!! This information is
currently out-of-date and we are in the process of
regenerating it !!!
Most providers have published estimates on expected
bad debts for lenders. Below is an analysis of
actual bad debts against predictions, sorted by how
well each of the companies has performed against their
own estimates. A complete year's worth of
data is required before any meaningful comparison can
be made. YES-secure has been split into the original
YES-secure and the rebranded
Encash as the underwriting had changed.
| Company |
Predicted Bad Debt
1 |
Actual Bad Debt
1 |
Comparison
2 |
| Annual |
Lifetime |
Lifetime |
Lifetime |
Range
(AER) |
Range |
Weighted
Average |
Range |
Weighted
Average |
Range |
Weighted
Average |
Quarterly
Change |
|
1 |
 |
0.6%
to
5.0% |
1.2%
to
10.6% |
4.52% |
0.83%
to
2.15% |
1.42% |
+9.06%
to
+0.37% |
+3.08% |
 |
|
2 |
 |
N/A |
< 1.7% |
0.49%
(0.00%)
4 |
< +1.21% |
N/A |
|
3 |
 |
< 1.0% |
< 1.0% |
0.00% |
< +1.00% |
 |
|
4 |
 |
0.0% |
0.00% |
0.00% |
0.00% |
|
| |
 |
0.5%
to
2.0% |
TBD |
TBD |
0.00%
to
0.91% |
0.47% |
TBD |
TBD |
N/A |
| |
 |
1.5%
to
11.0% |
3.0%
to
25.0% |
7.92% |
6.47%
to
5
24.87% |
17.82% |
+18.53%
to
5
-21.87% |
-9.90% |
N/A |
| |
 |
1.5%
to
11.0% |
3.0%
to
25.0% |
9.84% |
0.00%
to
23.01% |
6.53%
8 |
+25.00%
to
-15.73% |
+3.31%
8 |
N/A |
| |
 |
N/A |
1.0%
to
3.0% |
< 3.0% |
> 50.00%
6 |
<
-47.00% 6 |
N/A |
| |
 |
< 1.0% |
1.0% |
0.00%
8 |
+1.00%
8 |
N/A |
| |
 |
1.0% |
1.54% |
0.00%
8 |
+1.54%
8 |
N/A |
| Company |
Predicted Bad Debt
1 |
Actual Bad Debt
1 |
Comparison
2 |
| Annual |
Lifetime |
Lifetime |
Lifetime |
Range
(AER) |
Range |
Weighted
Average |
Range |
Weighted
Average |
Range |
Weighted
Average |
Quarterly
Change |
1 Data valid as of
30th May 2014; bad debt can take months to
years to materialise, and therefore the actual bad debt
figure may not be fully representative, especially when
a company's loan book is growing at a significant
rate (for example for the first two years Zopa's
bad debt was 0.05%)
2
Comparison of actual bad debt against predictions, with
a positive number indicating a better than expected
bad debt and a negative number indicating worse than
expected bad debt, with change from previous month indicated
3 Listings are excluded
from the comparison (figures in brackets) as Zopa did
not provide estimated bad debts for these loans
4 Due to the provision
fund, no lender on RateSetter has experienced any bad
debt, and the bad debt covered by the provision fund
is shown in brackets
5
The A+, A and B markets have all experienced significantly
worse than expected bad debt, but conversely the D market
has experienced better than expected bad debt, but given
the wide variation caution should be taken of credit
bands
6 Estimate based
on feedback on the Quakle Facebook group and the Quakle
forum (before it was shutdown)
7 No data is currently
available
8 Too soon
to draw any conclusion
9
It would be too soon to draw any conclusion, but no
data is currently available
A prequel to defaults are loans that are classed
as "late". This is where the borrower
has fallen behind with repayments for whatever reason.
This is a useful indication on future bad debts and
also how effective the company is at chasing late payments.
| Company |
Late Loans
1 |
| 1 month |
2 months+ |
Total |
| Range |
Weighted
Average |
Range |
Weighted
Average |
Range |
Weighted
Average |
Quarterly
Change |
|
1 |
|
0.18% |
0.02% |
0.20% |
N/A |
|
2 |
|
0.00%
to
0.50% |
0.32% |
0.21%
to
0.69% |
0.35% |
0.67% |
 |
|
2 |
|
0.00%
to
1.38% |
0.71% |
0.00% |
0.00% |
0.71% |
N/A |
| |
 |
2 |
2 |
|
|
|
1 Data valid as per
data on bad debts; expressed as a percentage of the
total capital of all loans where a payment has been
missed against the total outstanding capital
2 No data is currently
available
3 Data listed
as percentage of loans, rather than by amount as no
other data is available
Information taken direct from each of the companies
listed above, unless otherwise stated. Please
also refer to the
disclaimer.
|