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Post by bernythedolt on Nov 25, 2019 14:13:22 GMT
You can see why the regulator is mandating that P2P platforms force their lenders to self-certify their level of understanding & experience, in an attempt to tailor and limit their investment exposure. errr, if the platform simply changes its rules as it goes along then does it really matter what level of financial understanding you have? But that's a different matter altogether. All businesses reserve the right to amend their terms & conditions. We need to acknowledge that basic premise before investing anywhere. All I'm saying is, for investments like P2P, I think the regulator is right to ensure lenders are made as aware as possible of the risks. I'm certainly not condoning FC suddenly imposing a punitive loan selling fee, quite the reverse. It's particularly grubby to do that to those in the queue (self included) who'd already taken the decision to sell and will now be hit with the selling fee retrospectively. At minimum FC should have used a sliding scale, rather than a cliff edge. As things stand, investor A will sell for free, while investor B - one day behind A in the selling queue - will pay the full fee. That is plainly unfair and was a clumsy, foolish way to address the problem. Decisions like that can only help sink the company.
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blender
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Post by blender on Nov 25, 2019 14:43:28 GMT
But Dees, why do you insist on calling FC P2P??? It simply does not fit the definition because it is fully intermediated. You no longer have any direct "2" contact with any of the borrowing "Ps". The best it can be described as is a lending platform. But there is no P2P element. FC is p2p because you have a loan contract directly with the borrower, not with FC. The fact that you have almost zero control does not change that fact. When it started FC was true p2p - you chose the loans, the amount bid and the interest rate you offered, in a reverse auction. Those were the days. I like Assetz 90 day account, where the connection with the performance of the borrowers is even more tenuous than with FC, and Ablrate where you have full control and exposure. FC is uncomfortably in the middle, in that you get the full exposure to the loans and 'market conditins' without the control over the choice of the loans. But it's all p2p, just not real p2p.
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Post by darkgen on Nov 26, 2019 7:01:39 GMT
FYI - first post can be updated.
All loan-parts sold today @ 0522 (started on 12 June).
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Post by Ace on Nov 26, 2019 10:20:07 GMT
I finally gained access to my late mother's account, and can now report the details of a sale that was initiated before her demise. It doesn't add much to the sum knowledge of FC experiences as it's a sale that mirrors one of my own that I've already reported.
This was the second selling cycle on this account that was started on 10/6/19 and completed on 18/11/19.
I started a third selling cycle for the 3 remaining live loans yesterday (25/11/19). Yes, I know it's futile.
It was an investment of £10k over 19 months, and I've now received a total of £10,004.27 in repayments, so at least it's guaranteed not to have made an absolute loss. The XIRR is currently 2.86%. In fairness, this may be slightly understated from what could have been achieved because any income payments have been sat in the account for the past 10 weeks as I was unable to access the account to withdraw them.
For others going through the executor process it was fairly straight forwards. Once all of the necessary documents were provided they transferred the cash balance to me and said that they would send me any new cash balance once per quarter. I then asked for access to the account, so that I can manage its rundown, request loan sales, and withdraw cash more frequently. They were happy to grant me this access, which I now have.
One unusual difference was that FC did not require a Grant of Probate. They were happy to have a copy of the will instead. I'm not sure of the legalities of this, but it meant I could access this account much sooner than others as the GoP takes ages to obtain.
I'll obviously be dealing with the trickle of recoveries from this account for a very long time, which should raise the for XIRR a bit.
All in all I have to say that FC have been reasonable to deal with; not withstanding their lackadaisical DD, poor recovery handling, and now unfair sales policy.
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blender
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Post by blender on Nov 26, 2019 11:25:59 GMT
Snap! I have 2.8% return on a balanced account started in April/May 2018 and almost extracted. The eventual return will depend on how much of the £186 'lent out' will be lost and how much of the £1221 net losses will be recovered, and when. Nothing to be done but wait. Sorry for the loss of your mother, Ace.
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ceejay
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Post by ceejay on Nov 26, 2019 15:00:35 GMT
I finally gained access to my late mother's account, and can now report the details of a sale that was initiated before her demise. It doesn't add much to the sum knowledge of FC experiences as it's a sale that mirrors one of my own that I've already reported. ... For others going through the executor process it was fairly straight forwards. Once all of the necessary documents were provided they transferred the cash balance to me and said that they would send me any new cash balance once per quarter. I then asked for access to the account, so that I can manage its rundown, request loan sales, and withdraw cash more frequently. They were happy to grant me this access, which I now have. One unusual difference was that FC did not require a Grant of Probate. They were happy to have a copy of the will instead. I'm not sure of the legalities of this, but it meant I could access this account much sooner than others as the GoP takes ages to obtain. I'll obviously be dealing with the trickle of recoveries from this account for a very long time, which should raise the for XIRR a bit. All in all I have to say that FC have been reasonable to deal with; not withstanding their lackadaisical DD, poor recovery handling, and now unfair sales policy. I'm sorry for your loss, but it's good to hear that you have this element of the estate under control. On not requiring the Probate: I found, when dealing with an estate a little while ago, that different organisations all seemed to have their own policies, with no obvious pattern, rhyme or reason. There did seem to be an informal cut off of £5k which some applied for needing a Grant, but that wasn't consistent (National Savings, IIRC, were very quick and easy). "the GoP takes ages to obtain": not necessarily. If the estate is simple enough for the online process (many will be) it can be very quick - mine took three weeks from filling in the forms to getting the document in the post. There is a lot of out-of-date info on the internet! And finally: readers should remember that this (I guess) is the simplest scenario, where the executor is also beneficiary. For anyone contemplating this situation where the executor is a professional such as a lawyer, it could be very tricky and expensive to deal with.
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Post by Ace on Nov 26, 2019 15:35:21 GMT
I finally gained access to my late mother's account, and can now report the details of a sale that was initiated before her demise. It doesn't add much to the sum knowledge of FC experiences as it's a sale that mirrors one of my own that I've already reported. ... For others going through the executor process it was fairly straight forwards. Once all of the necessary documents were provided they transferred the cash balance to me and said that they would send me any new cash balance once per quarter. I then asked for access to the account, so that I can manage its rundown, request loan sales, and withdraw cash more frequently. They were happy to grant me this access, which I now have. One unusual difference was that FC did not require a Grant of Probate. They were happy to have a copy of the will instead. I'm not sure of the legalities of this, but it meant I could access this account much sooner than others as the GoP takes ages to obtain. I'll obviously be dealing with the trickle of recoveries from this account for a very long time, which should raise the for XIRR a bit. All in all I have to say that FC have been reasonable to deal with; not withstanding their lackadaisical DD, poor recovery handling, and now unfair sales policy. I'm sorry for your loss, but it's good to hear that you have this element of the estate under control. On not requiring the Probate: I found, when dealing with an estate a little while ago, that different organisations all seemed to have their own policies, with no obvious pattern, rhyme or reason. There did seem to be an informal cut off of £5k which some applied for needing a Grant, but that wasn't consistent (National Savings, IIRC, were very quick and easy). "the GoP takes ages to obtain": not necessarily. If the estate is simple enough for the online process (many will be) it can be very quick - mine took three weeks from filling in the forms to getting the document in the post. There is a lot of out-of-date info on the internet! And finally: readers should remember that this (I guess) is the simplest scenario, where the executor is also beneficiary. For anyone contemplating this situation where the executor is a professional such as a lawyer, it could be very tricky and expensive to deal with. Thanks ceejay , I did use the online process for the GoP application but it still took over 11 weeks to arrive. This was because the IHT process was quite complex, even though there was no tax to pay. It wasn't helped by the fact that the paper IHT forms, which were mandated, we're out of print for a considerable time. Hopefully they will allow these to be filled out online by the next time I have to go through this process. I agree that solicitors are likely to be an expensive way of administering an estate that has P2P accounts. Small value accounts may be more expensive to administer than they're worth. Would be interesting to hear from anyone who has experienced this.
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t189
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Post by t189 on Nov 26, 2019 18:30:56 GMT
Mine is now sold, got the email at 3.36pm. Only 2.5% didn't sell.
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Stonk
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Post by Stonk on Nov 26, 2019 23:31:51 GMT
When this thread reaches 100 pages, HM The Queen will post a message.
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b
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Post by b on Nov 27, 2019 10:08:45 GMT
Given the new fee to sell, I’d like to cancel my sale order. Instead I’d like to stop reinvestment, and withdraw available funds a couple of times a month. Is it possible to do this? If I just cancel the sale order, will my income be automatically reinvested?
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blender
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Post by blender on Nov 27, 2019 10:16:26 GMT
You will have to pause lending.
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criston
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Post by criston on Nov 27, 2019 10:38:09 GMT
Given the new fee to sell, I’d like to cancel my sale order. Instead I’d like to stop reinvestment, and withdraw available funds a couple of times a month. Is it possible to do this? If I just cancel the sale order, will my income be automatically reinvested? Removed you from list. Judging by the wait time at the moment, FC must have £millions waiting to get out, hence the reason for the new selling tool. I doubt there will be much sold on each round as an individual. So little I guess, it will awkward to differentiate between normal payments into holding account, unless you go into your statement to check which amounts have a 1.25% charge against them. Edit. Unless we get an email. FC say you will get at least one loan part sold on each selling round. My lowest loan part is £2 my highest is £350. I doubt the £350 will not be gone until all the others have. FC have stitched everyone up, making sure no one can pinpoint how long, on average, they have been waiting, selling a trickle at a time, weeks apart. All to avoid media attention.
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Post by bluehorseshoe on Nov 27, 2019 12:31:54 GMT
Mine for the 12th sold yesterday.
Oddly I also had a small amount (~£20) selling in my non-ISA a/c which seems to have been removed from the selling queue.
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Post by jagman on Nov 27, 2019 12:36:39 GMT
It will be important to find that out tho--because if the sale of loan parts is very slow, charging 1.25% at a time, it might make little difference to the time it takes to get all the investment back by just turning off lending, when the 1.25% will be saved. The key issue will be-- is the payment of 1.25% worth the increased rate of withdrawal?
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scooter
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Post by scooter on Nov 27, 2019 15:32:42 GMT
Received today from the Ombudsman
"Your complaint about Funding Circle Ltd
Your complaint has now been allocated to me and i thought I would introduce myself.
I appreciate you've contact Caroline as you are concerned that your complaint needs to be resolved before 2 December 2019 - before the new terms come into place.
Your complaint has been set as priority and I will endeavour to let you know what I think as soon as possible. However, I think it's unlikely this will be before 2 December 2019. Nonetheless, if we found that Funding Circle have done something wrong, we could still ask them to remedy this retrospectively.
I will keep you updated on my progress throughout my investigation of your complaint."
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