Zidisha updated terms of service

Discussion in 'Zidisha | Fostering Peer2Peer Entrepreneurship' started by MissBurrill, Dec 16, 2014.  |  Print Topic

  1. MissBurrill
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    MissBurrill Gold Member

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    I just received an email from Zidisha saying they have added a new provision for unused lending funds.

    If a lender does not relend or request withdrawal of his or her available credit within sixty days after receiving a repayment, Zidisha will activate continuous relending of the available credit on the lender's behalf. The lender may deactivate continuous relending at any time using the "Relending Preferences" page of his or her account.

    I have logged on and changed my settings to deactivate continuous relending. I then looked at a loan I had made. It was only $10 which isn't much to me but the lender only repaid $0.42 before the loan was marked as completed. There was no explanation why it was marked as completed.
     
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  2. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Nice. I was withdrawing every time the returned funds had reached a $10 threshold. I think I'll change that process to withdraw once a month. In fact, let me just go there now and pull what's there...
     
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  3. MissBurrill
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    MissBurrill Gold Member

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    I withdrew what I have there out of principle - they mark a loan as complete but don't tell us why hardly any money was repaid. I'm embarrassed to admit how low that amount is.
     
  4. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    I withdrew $1.21 a moment ago. :D

    My original "investment" was $250, and of that $44 have been lost and $57 remain outstanding. Similar to your example, I have loans that paid next to nothing back without any explanation.

    zidisha.png
     
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  5. MissBurrill
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    MissBurrill Gold Member

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    Wow, that's not good. I feel for the lenders but it makes me wonder when other programs do so well.

    I withdrew $0.07.
     
  6. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Got the email, too. Here's how they explain the change:

    "The purpose is to fulfill the intent of lenders who are no longer using their accounts, by allocating their repaid credit to new loans on their behalf."

    Gotta love how they think they can read my intent.
     
  7. IDGflygirl
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    IDGflygirl Gold Member

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    Am going to do the same!
     
  8. canucklehead
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    canucklehead Gold Member

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    I checked my preferences and mine are set at DO not relend my repayments. Not that it matters, my 40% loss left me with nothing to relend.
     
  9. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Mine is set to not relend either, but the way I read the announcement they will change the setting to relend if you let the money sit for > 60 days.

    40% loss... You did much worse than I did. Ouch!
     
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  10. canucklehead
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    canucklehead Gold Member

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    Yes, fortunately, in dollar amounts it was not a lot and as with any lending program, I understood the risks and was willing to take them to help someone out.

    This automated relend function is an onerous and poorly conceived program. How does Z calculate who and wear to lend to, what percentage to charge (if any), how much of the amount to one borrower vs multiple borrowers? It is difficult to conceive how they will play favorites (who they lend to) and who they leave out.
     
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  11. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    They must have a ton of disengaged members with some money sitting idle in their accounts.
     
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  12. zphelj

    zphelj Gold Member

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    There appear to be settings for percent to lend per loan and what interest to charge. There are also a few options that deal with loan selection prioritization. Looks like the default may be "Prioritize entrepreneurs with the best lender reviews".
     
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  13. mtlfire

    mtlfire Gold Member

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    Thanks for the heads up. I missed this e-mail. I was waiting for the loans to finish up to cash out, took out my couple of dollars last night. Hopefully that will allow me to turn out lend off as that option was grayed out. That they turn it on is bad enough, that I couldn't turn it off without doing a transaction is nuts.
     
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  14. quma

    quma Active Member

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    @mtlfire Zidisha will not allow you to turn auto-lending off even if you do a transaction!

    I cannot post the link to the Zidisha forum where this is discussed, but you can find the thread on the Z. forum, lenders question, title:
    "how to permanently opt of continuous relending"

    You call it "nuts" I would call it something else...
     
    Last edited: Feb 11, 2015
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  15. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    I am not a lawyer, but I consider it theft.
     
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  16. mtlfire

    mtlfire Gold Member

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    Holly cow. Well that settles it for me. Will keep an eye on returns and cash out as they come in.
     
  17. mtlfire

    mtlfire Gold Member

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    I really suck at keeping an eye on it. Got .21 cents out, but looking back the last few months they have autolended around 25$. 50% of them already paying back late lol.
     
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  18. basimelia

    basimelia Member

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    Contact service@zidisha.org. This is what Julia wrote on the Zidisha forum:

    See this thread, message #2:
    http://forum.zidisha.org/threads/how-to-permanently-opt-of-continuous-relending.1924/
     
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