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Post by fatbritabroad on Feb 28, 2018 19:45:47 GMT
I've messaged ablrate to suggest a well timed comment on the collateral debacle wouldn't go amiss. To my mind an fca authorised firm like ablrate is a different kettle of fish and I for one will not be withdrawing my admittedly small investment. Its still alot of money to me at 4k but I always accepted the risk of losing it all. There is a danger of this becoming a self fulfilling prophecy
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Post by wiseclerk on Feb 28, 2018 19:56:08 GMT
I doubt any other platform will comment until it is clear what is actually happening at Collateral right now.
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Post by GSV3MIaC on Feb 28, 2018 19:57:43 GMT
Not sure how can expect them to say anything even semi-intelligent, when COLL staff, and customers, are unable to do so yet.
(crossed with the above)
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Post by fatbritabroad on Feb 28, 2018 19:59:15 GMT
No they can't coomment on exactly what's happening but pointing out re fca authorisation contingency plans if they go bust etc. Just generally reiterating the procedures in place may make a difference
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Post by stevem on Feb 28, 2018 19:59:45 GMT
Not sure I understand the logic of "There is a danger of this becoming a self fulfilling prophecy" and why should Ablrate comment when they probably know as little as the rest of us?
Seeing your later post I agree there may be value in some reassurance re procedures.
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Post by ablrate on Feb 28, 2018 20:02:18 GMT
Hi All
I have been asked to make a comment on what is going on at Collateral. To be frank I don't really know. It appears from the front page that it's a server issue so I know as much as you. I would imagine that they will have to send out an update shortly with all the speculation that is going on. We don't really follow other platforms and their business so I am a little bit blind.
There has been talk of contagion to other platforms if (and that is only speculation at present) there were a problem. I don't see that. Ablrate, and I would wager all of the leading platforms, have robust procedures and solid revenue models that are in place to protect investors. It call all be a technical hitch and nothing more. I would hope that speculation doesn't cause lenders to make rash decisions about there current holdings on other platforms
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Post by fatbritabroad on Feb 28, 2018 20:02:38 GMT
As I say just there's alot of talk about people withdrawing from p2p or not investing new money on forums. If the majority panic and withdraw then there is a risk of it becoming a self fulfilling prophecy. Surely there is logic in that. I'm not expecting a detailed comment on what they think is happening more some reassurance as to why the same thing couldn't happen with them. It was just a thought that it might be worthwhile a comment that's all
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Post by fatbritabroad on Feb 28, 2018 20:23:13 GMT
Well to be fair doesn't seem to have affected interest in the new loan 😁
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Post by investorman on Feb 28, 2018 20:45:15 GMT
Ablrate is my first and only P2P platform.
I was tempted to diversify as suggested and looked at Collateral and Moneything.
However, I like the way Ablrate operate so stuck here.
I only have about 7% of my investments in P2P and am reinvesting interest but not increasing my investment at the moment.
One of the Ablrate FAQs covered what would happen in the event of the platform closing down suddenly and I felt suitably convinced that a sensible contingency is in place.
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Post by fatbritabroad on Feb 28, 2018 20:56:12 GMT
Yes this was my point really investors have short memories it's just useful to redraw their attention to the info available that was all I was trying to say. As you say I have less than 10%of my liquid net worth in p2p and less than 0.010% of my total net worth. I get the impression some have considerably more so may panic. I see now reason to do so at the moment
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blender
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Post by blender on Feb 28, 2018 20:59:50 GMT
It's for Collateral, and in extremis the regulator, to comment about the Collateral platform, not for other platform operators (except just to be polite as above).
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IFISAcava
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Post by IFISAcava on Feb 28, 2018 22:02:40 GMT
Well to be fair doesn't seem to have affected interest in the new loan 😁 It's a decent interest rate - gotta make up the possible losses from COL. Everyone's on tilt.
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steveb
Member of DD Central
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Post by steveb on Mar 1, 2018 8:26:20 GMT
Email received from ablrate.
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greatmarko
Member of DD Central
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Post by greatmarko on Mar 1, 2018 8:29:45 GMT
Email received from ablrate. ...and what an excellent and reassuring email it was from David! - Hats off to ablrate !
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mouse
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Post by mouse on Mar 1, 2018 8:30:05 GMT
for anyone who may not receive this email from ablrate 8.17 am approx re Collateral
Dear All
A number of our customers got in touch last night reference Collateral, a small p2p lender. We only know what everybody else knows however it appears that they have not gained the full FCA permissions and have gone into administration.
In circumstances like this all firms are required to have a ‘living will’ arrangement which means that a company, usually an insolvency company or accountancy firm, would manage the loan book to run off each loan and make sure the interest and capital is paid to lenders when received from the borrower. We assume that this will be the case for Collateral.
Obviously there would be charges made by the accountancy firm involved which may reduce returns. Our living will arrangement is with Kingston Smith, a large accountancy firm. Our agreement would allow Kingston Smith to operate our platform on a ‘read only’ basis meaning you would be able to see your dashboard in the same way and see interest payments coming etc. They would run off the book in an orderly manner.
Monies on deposit would be returned very soon as our client account is a segregated account with Natwest that has a ‘acknowledgement agreement’ in place which means that all parties, the bank and any liquidator, agrees that this does not form part of our funds and belongs to customers. This agreement is signed by the bank in the prescribed form given by the FCA (and had to be in place as part of our authorisation procedures).
Our model also has a good interest spread (that between what lenders receive and what borrowers pay), which means that there would be adequate funds to pay the liquidator on an ongoing basis so as not to affect the interest paid to lenders.
If you are a Collateral customer then I am sorry that this time will be a worrying one for you, but the regulators, the liquidators and the management team will be working hard to sort this out.
From our part, if there is anything we can do to assist, then please do get in touch.
Regards
David Bradley-Ward - CEO Customer services : + 44 (0)1491 410 400 Email: info@ablrate.com
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