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Post by crabbyoldgit on Jan 9, 2020 11:39:34 GMT
My whole experiance of peer to peer revolves around a successful resolution of this loan, capital returned anyway, interest i will write off to experience. Basically when AC were negotiating a posssible refinance of this loan, i assumed that it would occur and poured spare cash above my normal limit into the loan for a couple of weeks of high interest with the resolution to have nothing to do with the new replacement loan when it occcured. Idiot, kick own backside again. It has changed my investment max down to 1/2 % and if enough loans come over the years 1/4 %. But if no progress, at least a start of capital return does not start to plan i am out completely. The new player is conected to Stuart and if the plan gets the vote a failure in its implementation would collapse my trust in AC and the sector generally and I do not feel I am alone. I think this loan is the big test of AC and its management of defaults in general, the critical faiure in peer to peer in general has been default management. This year will be the make or break of many sites and could finish the whole show with a exit on mass of investors.Keeping and growing the investor base to fund loans may be more diffficult than finding new borrowers. Confidence in the resonable management of risk in loan offerings and resolution of defaults will be more critical than the headline return rate offered,that is then decimated by losses in reality, will retain and attract new investors to grow succcessful sites. I think AC is at present one of the better ones, we will see.Interesting and maybe dangerous times ahead.
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jfh82
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Post by jfh82 on Jan 9, 2020 12:29:18 GMT
My whole experiance of peer to peer revolves around a successful resolution of this loan, capital returned anyway, interest i will write off to experience. Basically when AC were negotiating a posssible refinance of this loan, i assumed that it would occur and poured spare cash above my normal limit into the loan for a couple of weeks of high interest with the resolution to have nothing to do with the new replacement loan when it occcured. Idiot, kick own backside again. It has changed my investment max down to 1/2 % and if enough loans come over the years 1/4 %. But if no progress, at least a start of capital return does not start to plan i am out completely. The new player is conected to Stuart and if the plan gets the vote a failure in its implementation would collapse my trust in AC and the sector generally and I do not feel I am alone. I think this loan is the big test of AC and its management of defaults in general, the critical faiure in peer to peer in general has been default management. This year will be the make or break of many sites and could finish the whole show with a exit on mass of investors.Keeping and growing the investor base to fund loans may be more diffficult than finding new borrowers. Confidence in the resonable management of risk in loan offerings and resolution of defaults will be more critical than the headline return rate offered,that is then decimated by losses in reality, will retain and attract new investors to grow succcessful sites. I think AC is at present one of the better ones, we will see.Interesting and maybe dangerous times ahead. I've already turned tail left P2P what with being caught up in Lendy and some other exceptional AC screwups (M******** T**** F******). I did have 60K with AC at one point but for 18 months I've been pulling it out when possible and I'm still stuck with 16K in defaults. I think I'll be lucky to get 50% back, especially as M******** T**** F******/P*L are confirmed 100% losses).
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lara
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Post by lara on Jan 9, 2020 12:41:43 GMT
How do the people who have experienced losses feel about the AC access accounts? Are you put off them as well now?
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cb25
Posts: 3,524
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Post by cb25 on Jan 9, 2020 13:44:04 GMT
I think this loan shows up serious weaknesses in AC's model -AC can't (or won't) call the loan in whilst the Borrower is willing to generate ideas for repayment (despite none to date having delivered) -borrower is allowed to state anything as a fact on the Lender Vote without AC verifying them -no time limit given for return of lender money -if (or more likely when imo) this loan fails, AC's PF will be shown to be totally inadequate
In fact, I can't name a single thing that AC have done on this loan to progress the return of lenders' money.
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jo
Member of DD Central
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Post by jo on Jan 9, 2020 14:55:46 GMT
Extend and pretend.
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shimself
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Post by shimself on Jan 10, 2020 15:48:46 GMT
In fact, I can't name a single thing that AC have done on this loan to progress the return of lenders' money.
Other people here think that the current proposal is likely to get us somewhere. And I think there is no doubt that AC have put some effort in. In some senses they are in more of a hole than most investors are
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cb25
Posts: 3,524
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Post by cb25 on Jan 10, 2020 15:57:33 GMT
In fact, I can't name a single thing that AC have done on this loan to progress the return of lenders' money.
Other people here think that the current proposal is likely to get us somewhere. And I think there is no doubt that AC have put some effort in. In some senses they are in more of a hole than most investors are And I suspect the same people thought the previous proposal would get us somewhere, and the one before that, and the one before that .... see a pattern yet?
Regardless of how this offer turns out, the only part AC have played is to allow the Borrower to put their proposals to us.
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shimself
Member of DD Central
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Post by shimself on Jan 10, 2020 16:45:00 GMT
Actually what they said was that this was the sort of offer that should have been made 12 months ago
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Post by madmitch on Jan 10, 2020 19:54:23 GMT
"...-if (or more likely when imo) this loan fails, AC's PF will be shown to be totally inadequate..."
But how can it ever fail?
We are now into the realm of 12 month extensions with no capital or interest payments actually required! Quite unbelievable.
This can be repeated ad nauseum.
Will it be a 24 month extension next time? Perhaps 36 months?
As discussed in much earlier threads, some of us are having to seriously think about the rewording of our wills to protect our beneficiaries inheriting this king-sized mess.
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Post by davee39 on Jan 10, 2020 21:57:02 GMT
Strange comment about a twelve month extension with no repayment required!
The vote was based on a 25% capital repayment on completion of a partial refinance. Unlike previous votes, which related to an extension to attempt to negotiate a refinance, here we have an actual offer, on the table, valuation completed and presumably checked over by AC, since second charge has been agreed. If the loan does not proceed, followed by repayment, the 12 month extension is void because the borrower will not have fulfilled his promise.
A liquidation of the assets might only realize 50% of the loan, based on offers during the marketing exercise. It would be unlikely to complete within 12 months and would only serve to offer satisfaction that the borrower has been punished. If the current plans succeed we could receive a 50% return after 12 months, with further returns as remaining assets are sold.
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Post by df on Jan 10, 2020 22:46:17 GMT
How do the people who have experienced losses feel about the AC access accounts? Are you put off them as well now? I'm not. Access accounts performed well for me. Despite all projected losses on other accounts I'm still actively using access (mainly 90-day) and have no plan exiting AC. Over past year or so the balance of my AC funds shifted from MLA to Access.
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tonyr
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Post by tonyr on Jan 11, 2020 12:37:00 GMT
How do the people who have experienced losses feel about the AC access accounts? Are you put off them as well now? I'm not. Access accounts performed well for me. Despite all projected losses on other accounts I'm still actively using access (mainly 90-day) and have no plan exiting AC. Over past year or so the balance of my AC funds shifted from MLA to Access. I'm not put off either. I've been with AC for something like 7 years and I've only had two significant losses, Holmston and this one. Between them they will take out a years worth of interest for me, but I'll still average about 10% over those 7 years. Did some of the stock markets do better over that time? Maybe, but they don't give the certainty of returns, there is huge pyschological comfort in knowing that you are unlikely to lose money in a year and are very likely to have steady gains at a high rate.
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Post by investor01010101 on Jan 11, 2020 13:43:27 GMT
Strange comment about a twelve month extension with no repayment required! The vote was based on a 25% capital repayment on completion of a partial refinance. Unlike previous votes, which related to an extension to attempt to negotiate a refinance, here we have an actual offer, on the table, valuation completed and presumably checked over by AC, since second charge has been agreed. If the loan does not proceed, followed by repayment, the 12 month extension is void because the borrower will not have fulfilled his promise. A liquidation of the assets might only realize 50% of the loan, based on offers during the marketing exercise. It would be unlikely to complete within 12 months and would only serve to offer satisfaction that the borrower has been punished. If the current plans succeed we could receive a 50% return after 12 months, with further returns as remaining assets are sold. I like your optimism but no repayments have been made and I seriously doubt any will be. Now the borrower has another extension a series of crisis will undoubtedly befall him and he won't be able to pay anything......its the same old story..............
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Post by investor01010101 on Jan 11, 2020 13:50:32 GMT
How do the people who have experienced losses feel about the AC access accounts? Are you put off them as well now? Yep, won't touch AC with a barge pole now....totally useless company, totally non transparent, always missing reporting commitments, fail to answer perfectly reasonable questions, always siding with the borrowers, need I go on. If they offered an "Accept a loss and lose your investment" option I would probably take it as its depressing watching an interest earned figure go over £500 knowing I will never see a dammed penny of it.
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Post by investor01010101 on Jan 11, 2020 13:56:14 GMT
Apparently the borrower is voluntarily going to repay us c£1m+ over 12-16 months. Who is falling for that one? Half way through January, he hasn't volunteered any payment so far........
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