richv
Posts: 42
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Post by richv on Jun 11, 2020 13:21:58 GMT
Have FC even come out and said what they're waiting for in terms of switching selling back on? Whats the end game here, anyone?ed This is like going for a new suit only to be told Id have to have my arms chopped off for it to fit... Now If I knew this before I entered the store, would I have ?.. If I where to make a prediction it would be that FC never tern back on the secondary market, and may never restart leading to 'the general public' when FC started there was a proper secondary market, you could chose which loans to sell, and whether or not to add a premium/discount, and you could chose which loans to buy, every change they have made has moved away form this. when they have moved in to new places (USA and Germany) there was no secondary market from the start. I strongly suspect that FC was looking for an excuse to suspend the SM with out crating too much fuss and will use this as a way of doing that. its just too much hassle for them with little in it for FC. I also suspect there is a reasonable Chance that they may stop putting loans out to the General public and instead focus solely on instinctual lenders (including the government) The FC business was not making money after 8 years and had almost stopped growing. if there is no change in stratage it will go under when they run out of cash. most of there recent statements have emphasised the growth in there instinctual lending, so I think this is probably more profitable prom FC perspective. FC transition form a P2P to a small business loan originator, would be there management long term plan and the COVID situation just bringing that forward. two things that to me are supportive of that assessment. a) FC is recomed that any lender that has a Standing Order to their account stops it. If FC plan to restart lending then they would what as much money in people accounts from day 1. b) FC normally puts info on there statistics website every 3 months including loans under management' this has not been updated. it they wanted to maintain confidence they would keep publishing the data. I may be wrong, we will see.
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Post by switchingcircle on Jul 31, 2020 19:58:55 GMT
1 year on and I've only got 1/4 of my money out of the platform. I never thought I'd be stuck in it 3 or more years, unable to use that money for other things.
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ashtondav
Member of DD Central
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Post by ashtondav on Aug 3, 2020 7:14:10 GMT
That’s the trouble with a five year investment. You can only exit early if there’s a buyer.
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blender
Member of DD Central
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Post by blender on Aug 3, 2020 7:59:07 GMT
That’s the trouble with a five year investment. You can only exit early if there’s a buyer. And buying has been unilaterally prohibited by FC, contrary to the what they offered at the time the investment was made. Meanwhile AC is introducing, this week, a new secondary market for holders of its access accounts, to improve liquidity damaged by the virus. New investors should take note.
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optimist
Member of DD Central
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Post by optimist on Aug 15, 2020 12:56:46 GMT
FC won't even allow you to sell you yourself to transfer out of an ISA. "It's all automated" they say
At least they pay interest on requested withdrawals and make interim payments. There are worse situations out there.
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richv
Posts: 42
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Post by richv on Oct 20, 2020 16:01:46 GMT
Looked at my portfolio for the first time in a while today and found the following comment on about a quarter of my defaulted loans: We have been unable to agree a suitable repayment arrangement with the loan guarantor(s) and have taken the decision to commence legal proceedings to protect your interests. Further information on the litigation process is provided here: support.fundingcircle.com/hc/en-us/articles/360045336611-Updating-loan-commentsGlad they are doing something to get money back, just surprised its so many at the same time.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,875
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Post by keitha on Oct 24, 2020 10:00:28 GMT
Looked at my portfolio for the first time in a while today and found the following comment on about a quarter of my defaulted loans: We have been unable to agree a suitable repayment arrangement with the loan guarantor(s) and have taken the decision to commence legal proceedings to protect your interests. Further information on the litigation process is provided here: support.fundingcircle.com/hc/en-us/articles/360045336611-Updating-loan-commentsGlad they are doing something to get money back, just surprised its so many at the same time. Shocked and surprised you have this on 25% I've got it on about 8% of mine and I have -ve comments on 163 loans Am seeing a few saying the borrower has breached the loan agreement ( surely being late is a breach )
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,875
Likes: 2,313
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Post by keitha on Jun 24, 2021 17:50:54 GMT
OK so here is where I stand about 23 months down the line from my attempt to get out
I have 72% of the value of my portfolio as of 24/7/19 sold or repaid the remaining loan parts equate to 27% of my portfolio as of 24/7/19 So in 23 months I'm 1% down
Then the debt sale sold 5.5% of my portfolio for 2.7% so that's a further 2.8% loss and another 7% is in default (after allowing for payments)
so 23 months nearly an 11% loss
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,875
Likes: 2,313
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Post by keitha on Jun 25, 2021 18:56:54 GMT
Looked at my portfolio for the first time in a while today and found the following comment on about a quarter of my defaulted loans: We have been unable to agree a suitable repayment arrangement with the loan guarantor(s) and have taken the decision to commence legal proceedings to protect your interests. Further information on the litigation process is provided here: support.fundingcircle.com/hc/en-us/articles/360045336611-Updating-loan-commentsGlad they are doing something to get money back, just surprised its so many at the same time. Shocked and surprised you have this on 25% I've got it on about 8% of mine and I have -ve comments on 163 loans Am seeing a few saying the borrower has breached the loan agreement ( surely being late is a breach ) I seem to have a slowly diminishing number with -VE comments
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Post by natasha1 on Mar 11, 2022 15:31:25 GMT
10 March 2022
Well that was expected...
Dear .....,
Today, we are writing to you with an update about lending at Funding Circle.
After two years of the platform being paused for new investment from retail investors as we navigated and adapted to the Covid pandemic, we have taken the decision to permanently close the retail platform for new investments. This includes buying and selling loans through the Secondary Market. We will continue to manage your loan portfolio on an ongoing basis until all your remaining loans have been repaid or recovered. You will still receive repayments of interest and principal into your account which can be withdrawn any time by following a few simple steps.
We are very proud to have been the first platform to open up small business loans to retail investors and we have delivered strong returns despite the Covid pandemic. Since our launch in 2010, the 90,000 retail investors who have lent to small businesses have earned average annualised returns (after fees and bad debt) of 5% from loans in the retail platform. These loans have supported small businesses nationwide – helping them to grow, create jobs and support the UK’s economic recovery.
This has been a tough decision to make and one that we have taken following careful consideration. Since new lending was paused in April 2020, we focused on supporting small businesses to access finance through new and existing products, including through Government schemes which retail investors were unable to participate in. During this period, retail investors have on average received 80% of their investments back and currently represent 5% of Funding Circle’s total loans under management. This period also saw some major changes within the industry including key players closing their retail platforms, proposed regulatory changes and broader market dynamics. These factors have led us to today’s announcement as we do not believe we could continue to operate a sustainable product for retail investors. We have informed the FCA of our decision and the considerations set out above.
Next steps
You don’t need to take any action – you will continue to receive repayments in your account from the businesses you have lent to which can be withdrawn immediately. We recommend setting up your nominated bank account if you haven’t done so already, or ensuring your current details are up-to-date, so you can withdraw your available funds quickly and securely in your account.
For any loans in your portfolio which have defaulted, we will continue to work hard to recover these funds through our Collections, Recoveries and Litigation teams, or by returning funds to you immediately through future sales of debt to third parties.
Thank you
We want to say a huge thank you to every investor who has lent through the Funding Circle platform since 2010. You have all played a significant role in helping small businesses to access the finance they need to grow which, in turn, has created tens of thousands of jobs and contributed billions of pounds to the UK economy. This has been a difficult decision to make and we have considered a number of options, but we feel now is the right time to close retail lending.
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