ashtondav
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Post by ashtondav on Aug 14, 2019 15:43:19 GMT
5 year product. Think yourself lucky to get out in under 5 years!
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criston
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Post by criston on Aug 14, 2019 15:51:16 GMT
5 year product. Think yourself lucky to get out in under 5 years! FC Quote. 'Your funds will be lent to businesses who borrow over 6 months to 5 years, but you have options to access your money at any stage.'
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Post by shanghaiscouse on Aug 14, 2019 15:53:10 GMT
You have a very narrow self-interested view that I don't share. To assist others in understanding the business model before they lend money on this platform, they should have some examples of the actual returns available in terms of the gross interest less bad debts and comissions. Only when you see the absolute numbers does it start making sense and you get a handle on the level of risk.
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tenori
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Post by tenori on Aug 15, 2019 6:24:40 GMT
I have a sale initiated on 23 May, currently 0% sold. Thanks for keeping track of this!
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Post by kcrane on Aug 15, 2019 8:20:06 GMT
You have a very narrow self-interested view that I don't share. To assist others in understanding the business model before they lend money on this platform, they should have some examples of the actual returns available in terms of the gross interest less bad debts and comissions. Only when you see the absolute numbers does it start making sense and you get a handle on the level of risk. Do you mean something like this?
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Post by shanghaiscouse on Aug 15, 2019 12:14:36 GMT
Yes, if you post those numbers on Trustpilot it is helpful for new lenders to know that people are seeing negative returns (your all-time is about zero but if you look at this tax year in isolation by deducting the sum of your historical tax statements from this all-time figure you will see you are negative). I also set up another thread 'compare actual returns here'. I am negative for this year. What is really mendacious (in my humble opinion) is that nowhere on the FC platform can you see your actual return in real time. The 'annualised return' figure is a historical figure since the date you opened your account. It is a lending platform, so if you compare to a bank, what bank would show your annualised interest since you opened the account? Interest rates will have moved up and down. What you need to see is your current rate your money is earning. By using this 'annualised rate' they effectively conceal negative returns. If I break my annualised return down then I was getting 6%-ish during the first few years when I had smaller balances of £5 to £35k, but last year I put £350k in, which unfortunately coincided with their lending spree. I believe they have breached their fiduciary duty to me by going on that spree and will be putting in a complaint to the financial ombudsman (after complaining to them first). I have already put in a complaint about their advertising to the FCA as if you look at the website, not only do they not mention the negative returns some people are seeing, in their 'stress test' they even deny the possibility, still showing 3-5% returns during a recession. We are not in a recession and yet I am seeing negative returns!
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Post by toadears on Aug 15, 2019 16:02:56 GMT
Sale order 16/05 - 100% sold 15/08 - 91 days. Sale order for the balance of the account placed today (15/8) but goodness only knows how long I will have to wait for it!
Very many thanks to Criston for running the forum so efficiently - much appreciated.
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ashtondav
Member of DD Central
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Post by ashtondav on Aug 15, 2019 16:13:31 GMT
Yes, if you post those numbers on Trustpilot it is helpful for new lenders to know that people are seeing negative returns (your all-time is about zero but if you look at this tax year in isolation by deducting the sum of your historical tax statements from this all-time figure you will see you are negative). I also set up another thread 'compare actual returns here'. I am negative for this year. What is really mendacious (in my humble opinion) is that nowhere on the FC platform can you see your actual return in real time. The 'annualised return' figure is a historical figure since the date you opened your account. It is a lending platform, so if you compare to a bank, what bank would show your annualised interest since you opened the account? Interest rates will have moved up and down. What you need to see is your current rate your money is earning. By using this 'annualised rate' they effectively conceal negative returns. If I break my annualised return down then I was getting 6%-ish during the first few years when I had smaller balances of £5 to £35k, but last year I put £350k in, which unfortunately coincided with their lending spree. I believe they have breached their fiduciary duty to me by going on that spree and will be putting in a complaint to the financial ombudsman (after complaining to them first). I have already put in a complaint about their advertising to the FCA as if you look at the website, not only do they not mention the negative returns some people are seeing, in their 'stress test' they even deny the possibility, still showing 3-5% returns during a recession. We are not in a recession and yet I am seeing negative returns! My santander 123 account displays earnings since opening the account, and the latest month. I think that would be reasonable figures for FC to calculate. I too am mystified as to why they have not adjusted their stress tested returns, and still claim that 86% of investors following their guidelines earn more than 4.6% (although that maybe lifetime returns.)
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benaj
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Post by benaj on Aug 15, 2019 21:22:58 GMT
Sale order 16/05 - 100% sold 15/08 - 91 days. Hmmm, I haven't sold mine yet, making my own prediction is not going to make me happier. I keep withdraw every month to buy 1 pint or 2 before the "end". To assist others in understanding the business model before they lend money on this platform, they should have some examples of the actual returns available in terms of the gross interest less bad debts and comissions. My experience with Zopa plus (advertised as 6.5%) wasn't great back in 2017, I managed to make a tiny profit of <1% after 28 months with only 8 months active investment. Although FC recent performance reminds me of Z+, I find FC provides more information than any platform I have dipped a toe. 1. Investment information pack 2. Investor getting started guide3. Information explaining how performance varies over time4. Regular update about risks and returns5. Frequent update about selling time I do argue the statistics page does not give out much significant numbers, but my experience with FC is definitely a better one than Z.
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tc94
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Post by tc94 on Aug 18, 2019 19:23:59 GMT
Hello all,
Has anyone else noticed this in the t&cs?
10.6. There is no guarantee that your Loan Parts will be transferred, nor any assurance as to how long it may take to do so. If a transfer has not been successful within 120 days after you make your request, we will delist the Loan Parts from the secondary market of the Funding Circle Platform. We will notify you if the transfer is not successful and you will continue to be the Investor in respect of the unsold Loan Parts
It looks like we are heading towards the 120 day mark...
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criston
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Post by criston on Aug 18, 2019 20:17:27 GMT
Hello all, Has anyone else noticed this in the t&cs? 10.6. There is no guarantee that your Loan Parts will be transferred, nor any assurance as to how long it may take to do so. If a transfer has not been successful within 120 days after you make your request, we will delist the Loan Parts from the secondary market of the Funding Circle Platform. We will notify you if the transfer is not successful and you will continue to be the Investor in respect of the unsold Loan Parts It looks like we are heading towards the 120 day mark... Thanks for bringing it to our attention, but that's a big blow. If FC stick to that, if the trend continues, anyone who initiated a sale after around 1/6/19, will have to restart.
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Post by jaycee on Aug 18, 2019 22:40:19 GMT
Hello all, Has anyone else noticed this in the t&cs? 10.6. There is no guarantee that your Loan Parts will be transferred, nor any assurance as to how long it may take to do so. If a transfer has not been successful within 120 days after you make your request, we will delist the Loan Parts from the secondary market of the Funding Circle Platform. We will notify you if the transfer is not successful and you will continue to be the Investor in respect of the unsold Loan Parts It looks like we are heading towards the 120 day mark... Thanks for bringing it to our attention, but that's a big blow. If FC stick to that, if the trend continues, anyone who initiated a sale after around 1/6/19, will have to restart. Wouldn't that effectively vapourise a portion of the queue, and mean some people who initiated a sale later get their sale processed faster?
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plepi
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Post by plepi on Aug 19, 2019 8:09:06 GMT
Sold at 5am GMT (instruction on 17/05/19), 90% sold
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Post by dazp70 on Aug 19, 2019 9:27:53 GMT
It looks like the 120 lending time will randomise the selling queue. So within a few weeks, loans will start dropping out due to the 120 day rule and that all loan sales will reach the 120 day mark. Although this will mean that loans will will start to progress up the queue more quickly due to the drop outs. Assuming that those just before the 120 day cut off are next to sell, some of them will. Hence the random element of it. So this is potentially good news for those selling now as they won't have to wait more than 120 days to have some chance of selling.
Reading 10.7, not sure if this means you have no choice but to auto-lend when you are kicked out of the queue. That would be very harsh.
10.7. We will notify you when the transfer process has been successfully completed. After the transfer, you will be required to restart the auto-lending tool on your Investor Account to start lending again on the Funding Circle Platform.
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Post by shanghaiscouse on Aug 19, 2019 9:43:15 GMT
Randomise? i.e. there will be NO queue. So someone who just started selling will have same chance as someone who waited 119 days. I am not sure if they ever predicted this 120 day limit will be reached, but if they do apply it, you can expect a run on their liquidity as investors flee for the exit (those who haven't already)
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