Without mentioning any particular loan or platform, it's become quite clear to me that fraud is rife in peer to peer borrowing. It's not just dodgy borrowers - it's brokers, it's valuations, it's solicitors (DP and his merry legal team anyone?) and I would not be even slightly surprised if some platforms were in on it as well, even if it's just by turning a blind eye to dodgy dealings so they can pocket huge fees.
Not long after I first started with peer to peer I remember one poster who listed fraud among the top risks, something I dismissed as a little OTT at the time, but now I think he was absolutely right. The only people who seem to lose when these borrows vanish with a huge pile of cash leaving little to show for it is us, the lenders.
For everybody else it's a win, and the temptations are enormous.
And those great bastions of Things Financial and Guardians of The Investing Consumer, The FCA, despite numerous complaints and mounting evidence for more than a year, blithely continue to do Football Association.
Of course, when (if?!) they do finally wake up and act, we can rest completely safe in the knowledge that The FCA is utterly blameless.
You know I fully agree as well. I can certainly think of at least one loan across my portfolio where I believe the facts about it were misrepresented by someone in order to gain money from me. Not up to me to decide if that was actually the case though.
So...55 days later and what progress has been made ?..what updates have been issued ?...has any assurance whatsoever been given to investors that something, ANYTHING AT ALL has been achieved in securing investors capital back and interest accrued ?
I invested in these art loans on the basis that should they default recovery would be fast and simple. I assumed that should they default FS could simply put them in the next available auction, sell them off very quickly and with the relatively Low LTV quite likely recover all capital. How very wrong my theory turned out to be. Something very fishy is going on here. Does FS have position of the art? Is there some reason (such as forgery) why they can’t auction them and recover our capital. 7 months overdue and practically radio silence.
The Fine Art loan (3020915407) also looks to be to the same borrower. The 'same' picture was offered to Unbolted and if I recall correctly was claimed to be in the applicant's possession at the time. According to FS, the picture was simultaneously in storage at Constantines. Very strange.
Eight weeks are up ! I have now put a complaint into the FCA regarding the borrower's attemped fraud. A non-responsive reply from FS suggests that I have their backing !
Good thank you! This is completely unfair to borrowers! Every day this loan sits there we are losing interest (does it look likely we will recover interest?) while our capital sits unlawfully at the hands of another! I am having to withdraw monies from other sources against my interests to cover this bad loan. There is no excuse for this.
Borrower has advised that we should have interest this coming week.
By May, with no money or intervening updates, we've gone to:
We apologise for the infrequency of updates on this loan. We are currently working with the borrower’s lawyers to repay this and all other loans as soon as possible. At the moment we expect all loans to be fully repaid within the next 3 months with some partial repayments starting next month.
And now another two months on, still no repayments, partial or otherwise, and no update.
A charitable interpretation would be that FS are too ready to accept glib promises from delinquent borrowers. Others may have less charitable, and potentially libellous, interpretations.
I've voted with my wallet and stopped investing through FS a while back. Others seem to have done the same. I wonder if they will still be around in 12 months?
I am in this one(s) so very annoyed. What on earth if the problem - these items seem very sellable by world-famous artists. I am wondering if there is legal contention over the ownership? Was this the one where there seemed to have been an attempt to lend twice on it. If all 5 or whatever items went to auction I would estimate that overall the loans would be recovered so I wonder if FS took out a charge against all items of the owner rather than 5 individual charges which would mean gains on some items would not negate losses on others? I am not even sure why FS need a lawyer in the first place - these are now their items so sell the damn things! However much is he costing
I could ask the on-line "help" but that would just be a complete waste of time" with a vague promise of a future "update"
Very poor all round!
My FS holding is now done to £850 and I am just glad I never stuck serious money into this outfit