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P2P companies show an increase in late payments
The Christmas and new year period has given rise to a small but noticeable increase in late payments in the P2P companies that we are tracking. Zopa and RateSetter showed a very small increase, bringing their overall late payments to 0.64% and 0.14% respectively. Funding Circle, which currently are the best performing P2P company against their bad debt statistics, have shown a modest increase to 1.70%.
Encash (YES-secure) currently have late payments in excess of 7.41% as they only publish figures for loans that are more than 2 months late, as this is four times the rate of their nearest rival. The figures for Encash (YES-secure) are broken down into pre and post rebranding as their underwriting apparently was significantly improved. While the bad debt rates under the Encash brand are significantly better than under the YES-secure brand they are still more than twice the rate any of their competitors.
We should also not forget that bad debt rates for all of the companies, except YES-secure, are significantly better than estimates, and lenders with RateSetter have not suffered any loss due to the protection of the provision fund.