c88dnf
Member of DD Central
Posts: 364
Likes: 266
|
Post by c88dnf on Aug 13, 2017 1:42:59 GMT
I currently invest with 15 p2p platforms - trying to spread the risk as much as I can In terms of proportion FC is always in my "top 5". Complete collapse of platform is the biggest risk and FC is not likely to collapse. I'm quite optimistic about the future of p2p industry, but of course, anything new raise concern. So far it's only Zopa who survived through credit crunch, the others are not old enough Interesting comments, though Zopa and FC are also the two companies whose profit & loss accounts are in the deepest red by a considerable margin (at least at their last reporting dates via Companies House). When 2016 data comes through for them and Ratesetter, I'll post an updated version on the forum of my comparative profit/ loss chart of P2P companies I deal with. Earlier versions from 2014 & 2015 may still be around on this forum if you look hard. FWIW, I junked Zopa 3 years ago and only now have a rump of 7 bad debts (bought before the brief protection fund era there) worth diddly-squat. FC I have got out of with all possible speed over the last month by selling off all the loans I could, making (I am slightly ashamed to say) a decent premium in the process as fools sagacious investors rushed in. As with Zopa, my FC loans are now a rump of property loans which are all bad debts or (very) late, representing around 12% of my peak investment. I expect something will come back from them, but how much, who knows. FC clearly have no idea and appear to care less. Neither Zopa nor FC feature in my future investing plans.
|
|
markr
Member of DD Central
Posts: 766
Likes: 426
|
Post by markr on Aug 13, 2017 11:58:49 GMT
Interesting point this as I've always thought a personal guarantee would be pretty powerful, however, I've seen some people (more knowledgeable than me) commenting that a personal guarantee is not worth the paper it's written on. So, which is it? It's mostly just hyperbole. If the guarantor is a dodgy geezer or a man of straw then the chances of recovering much are low. It also needs a recovery team with teeth to chase them through the courts to bankruptcy. FC's recovery rates were worse when they used third-party agents, FC were reluctant to default loans as they'd have to pay the recovery fees, and, presumably, the agents did as little as possible commensurate with earning their fee. Once FC brought recoveries in house, performance improved markedly. As GSV says, the purpose of the PG is to remove the limited liability protection and make individual(s) responsible for the company's debt, and it is successful at that (the dividend from liquidated companies usually being pence or fractions of pence in the pound). The problem with them is that, first I think when signing a PG, guarantors are often not aware of the seriousness of what they are undertaking, and second, when the PG is called the guarantor(s) are sometimes heavily in debt because they've been trying to save their business. As a result, a significant proportion of PGs recover nothing. It is human nature to be irked by this, especially if it seems the borrower has "got away with it" in some way. High rate, secured property loans may have seemed like a safe bet, but we're finding that a higher proportion of these loans get into difficulties, and of those, the security isn't as secure as we first thought.
|
|
kaya
Member of DD Central
Posts: 1,150
Likes: 718
|
Post by kaya on Aug 13, 2017 12:16:12 GMT
I wish. I have seen grievances with all the platforms discussed on here so I do not see any safeheaven If not even heaven is safe, we have probably all had it. All that is left is under the mattress.
|
|
|
Post by sanmiguel on Aug 13, 2017 13:12:54 GMT
well i'm not, only been on here 2mths and already lost £33.67 on a bad loan, i have 4 loans now downgraded so probs going to lose more money there, £16.78 in charges to sell me the bad loans on autobid in the first place, i'm begining to regret investing in fc !
|
|
justme
Member of DD Central
Posts: 203
Likes: 89
|
Post by justme on Aug 13, 2017 13:49:00 GMT
I suppose when you just start you are bound take mistakes that's one. Without knowing how many loan parts you had in how many loans one would not been able to say whether it is bad or not.
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Aug 13, 2017 14:02:27 GMT
well i'm not, only been on here 2mths and already lost £33.67 on a bad loan, i have 4 loans now downgraded so probs going to lose more money there, £16.78 in charges to sell me the bad loans on autobid in the first place, i'm begining to regret investing in fc ! You don't pay charges when using autobid.
|
|
|
Post by dan1 on Aug 13, 2017 14:27:35 GMT
well i'm not, only been on here 2mths and already lost £33.67 on a bad loan, i have 4 loans now downgraded so probs going to lose more money there, £16.78 in charges to sell me the bad loans on autobid in the first place, i'm begining to regret investing in fc ! You don't pay charges when using autobid. I assume sanmiguel paid £16.78 in accrued interest to the seller.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Aug 13, 2017 16:26:37 GMT
If sanmiguel purchased the interest accrued since the previous repayment, and then the borrower failed to pay it, that's a rather nasty loss.
|
|
|
Post by ratrace on Aug 13, 2017 17:42:01 GMT
well i'm not, only been on here 2mths and already lost £33.67 on a bad loan, i have 4 loans now downgraded so probs going to lose more money there, £16.78 in charges to sell me the bad loans on autobid in the first place, i'm begining to regret investing in fc ! Sanmiguel a loss of £33.67 is not so bad. After only a few months investing in FC l myself took a hit of £149. Which at the time crashed my returns from 11.9% down to 9%. Now that did sting. So my advice would be not to lose heart and to stop using autobid.
|
|
|
Post by mikeyp on Nov 21, 2018 16:18:52 GMT
Good news - they're still chasing Breath of Fresh Air which was my first FC default in 2014!! Better news! There is some sign of progress.
|
|
|
Post by hammertime on Dec 3, 2018 16:49:40 GMT
I'm happy as i have almost got rid of all my F/C loans and i am getting 11% in A/C.
|
|
ashtondav
Member of DD Central
Posts: 1,812
Likes: 1,088
|
Post by ashtondav on Dec 3, 2018 17:25:28 GMT
You won't be netting 11% after bad debt on Ac...
|
|
|
Post by hammertime on Dec 4, 2018 10:41:33 GMT
No problems yet i must be good at this.
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on Dec 4, 2018 15:23:03 GMT
Go to Browse Loans, sort by interest rate and you will see that the vast majority of 11+ loans are suspended; that should give you a sense of risk. Most of the few that are not suspended are close to the end of their lifetime; let's hope they have an exit.
|
|
|
Post by gravitykillz on Dec 4, 2018 17:10:43 GMT
I completely sold my fc holdings last year apart from a few that defaulted. I am now in ratesetter and lending works and i havent lost anything yet so i guess i am happy but ask that question on the lendy page and see the response you get.
|
|