09dolphin
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Post by 09dolphin on Feb 6, 2019 7:05:35 GMT
About 3 or 4 years ago I started investing with FS when it was basically a pawn site and I was very happy with the returns I achieved in the first loans I made (even though 1 went "belly up").
Now it has fundamentally changed and all my gains over the period I have been investing have been wiped out and I now have a capital loss.
I decided to cease investing over 1 year ago in their 6 month loans. Part of my decision was because their valuations were obviously overly optimistic, partly because representing that the loans were for 6 months seemed dishonest, that their recovery process seemed inept to say the least and I was expecting a capital loss.
When, oh when, will I find out what is going to happen to the 10 loans I still have. FS don't seem to know or have any clue as to when these loans (which have been active for between 1248 days to 451 days) are likely to resolved. Whilst the sum still in FS is relatively small - fractionally less than £1000 and the interest is well over £300 - I just want out and to close this unfortunate investment experience
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Post by biscuit on Feb 6, 2019 8:07:56 GMT
About 3 or 4 years ago I started investing with FS when it was basically a pawn site and I was very happy with the returns I achieved in the first loans I made (even though 1 went "belly up").
Now it has fundamentally changed and all my gains over the period I have been investing have been wiped out and I now have a capital loss.
I decided to cease investing over 1 year ago in their 6 month loans. Part of my decision was because their valuations were obviously overly optimistic, partly because representing that the loans were for 6 months seemed dishonest, that their recovery process seemed inept to say the least and I was expecting a capital loss.
When, oh when, will I find out what is going to happen to the 10 loans I still have. FS don't seem to know or have any clue as to when these loans (which have been active for between 1248 days to 451 days) are likely to resolved. Whilst the sum still in FS is relatively small - fractionally less than £1000 and the interest is well over £300 - I just want out and to close this unfortunate investment experience Sorry not able to advise as I'm in a verty similar situation, been with FS for just over 5 years, first 2-3 were great but with a portfolio of 66 loans, all overdue (1248 -248 days) I'm expecting an overall capital loss for the 5 years. Stopped all investing 6 months ago the valuations were proving to be crazy.
Biscuit
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Post by brightspark on Feb 6, 2019 8:36:50 GMT
I feel sure there are lots of others with a similar predicament. In money terms your investment is very small and has to be viewed against the background that it is the bad loans left after your other loans made good i.e. you win some you lose some but in your case unfortunately the losses are outweighing the gains. Without conducting a full analysis of your financial affairs it is impossible to make a meaningful judgement of what you should do. From the tone of your question alone I would advise writing off the whole investment and treat any recoveries as a bonus. I would pursue a policy of reviewing the performance of these dregs on a 3 monthly as opposed to a daily basis. I would not make any further investment in the foreseeable future via the FS platform. Their investments are high(er) risk and not for the inexperienced or faint hearted. i would take a similar view on other platforms' offerings using the broad principle that higher interest equates to higher risk.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Feb 6, 2019 10:33:41 GMT
Never good to hear of people having losses but it adds to the overall information for people to make decisions based on actual experiences.
With that in mind over the whole of your time with FS did you make an overall loss or profit however small .
Write the current outstanding loans off at least mentally. Check periodically or when you get update and splurge the cash when you get any back.
Good luck. As there is always a luck element involved.
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Post by mrclondon on Feb 6, 2019 11:27:29 GMT
09dolphin - you may find this post I made in December goes someway to answering your question by looking at the recoveries on Lendy.
There is an element of luck in p2p as its not easy to spot mis-representation early enough to avoid (or sell on SM if possible) - I'm thinking Whitehaven and Wind Turbine here.
Timescale - 5 years plus (1800 days) before amount of capital write-off can be sensibly guessed, possibly upto ten years based on some of my FC loans. This applies to all platforms - AC still has 2014 loans in recovery.
It has been unfortunate that you and many other lenders have been sucked into investments that are not suitable for retail investors who are unable to take a long term view. Its even more unfortunate that now the reality is obvious, that there is little to prevent new lenders from being similiarly sucked in.
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grumpsimus
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Post by grumpsimus on Feb 6, 2019 16:13:23 GMT
I am in a similar position to 09dolphin. The only sensible position is too treat all the money in FS as lost, with any eventual recoveries as being a bonus.
I have two accounts which now appear to be moribund, with very little happening. All the outstanding loans are of course massively overdue, in some cases by years.
In the main account I have 7 loans, the last interest was paid in November 2017, since then there has been a pittance of capital repaid. There is the odd update, but they are usually completely risible, having little connection to reality. I think these loans will have to be written off, although FS appear reluctant to admit this. I would rather have the losses written-off, as I could use this against my other P2P income to reduce tax.
In the IFISA I have 15 loans, the last interest was paid in September 2018, since them there has been no activity. I do have some cash in this account, but need to wait until April to open another ISA to transfer it too.
These are zombie accounts which I would like to terminate as quickly as possible.
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adrian77
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Post by adrian77 on Feb 6, 2019 16:27:49 GMT
Perfectly reasonable view - hopefully the situation won't be that bad - granted the art loans etc could be a dreadful result.
Apart from my art loans which I have budgeted at a 100% loss I have budgeted 50% loss for my remaining loans. Not sure how typical my position is but if my defaulted loans realise 50% recovery my FS return will be about 4% but if over 50% my return will go towards or even below 0%....
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Feb 6, 2019 17:08:59 GMT
Perfectly reasonable view - hopefully the situation won't be that bad - granted the art loans etc could be a dreadful result. Apart from my art loans which I have budgeted at a 100% loss I have budgeted 50% loss for my remaining loans. Not sure how typical my position is but if my defaulted loans realise 50% recovery my FS return will be about 4% but if over 50% my return will go towards or even below 0%.... On the upside if you write it off it can’t get worse. Even latest ancient Lendy loan paid 36% plus initial interest paid. So don’t slit your wrists yet. We would miss your contributions. 
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travolta
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Post by travolta on Feb 6, 2019 17:53:18 GMT
There is no helping you . Its rather like horses if you have no solid evidence of form and are inexperienced. P2P comes with a health warning. Its not luck , but ignorance. Now you are wiser ,you will do better.
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Post by martin44 on Feb 6, 2019 23:34:53 GMT
09dolphin .. I find myself in a semi-fortunate position, i realised over a year ago (IMHO) that both FS and collateral were operating in a what i considered to be an unsustainable manner, and got out, for various reasons,.....i still however find myself fairly heavily invested in MT and Lendy , and in virtually all loans i am now trapped, there is no way out other than to sit it out, fingers crossed, and hope for the best.. good luck., many of us are going to need it.
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