p2pfan
Member of DD Central
Full-Time Investor
Posts: 739 
Likes: 830
|
Post by p2pfan on Jul 2, 2019 11:51:16 GMT
There are countless reviews on Trustpilot and elsewhere of people who are suffering high default rates. Three examples below.
Why is Assetz Capital experiencing such high default rates for quite a few lenders?
Why is their Provision Fund not being used to pay these distressed lenders?
"My average interest rate is displayed as 8%. In fact I am earning 2.02%, the majority of which comes from one good loan among dozens of bad ones. There are a number of loans with no short-term prospect of recovery. I recommend avoiding AC at all costs."
"This company is unbelievable. They loan out up to 20 % of your capital in automatic lending. The number of defaulted loans are huge. I lost 60% of my capital on 4 loans to the same company divided up into 4 projects. On top of that there is 5 to 10% more defaults. Nearly 70% of all my money is defaulted. I think the timing of my money going in was extremely unlucky so some people will have a decent experience but this is unacceptable. Do not touch"
"I have invested money in 7 loans with Assetz and 5 of them have gone into default. 2 of them finally paid up after a long protracted process of repossession, one I got all of my capital back and some of the interest."
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on Jul 2, 2019 12:43:39 GMT
I can't confirm your observations. I've 6+% on the standard and ISA accounts, both spread about several sub-accounts (not GBBA or the PSA). Predictions on the standard account are ~6.2, which comes close; the ISA is too new to conclude anything from the prediction (I am confident though). I do have some bad loans in the standard MLA but not a whole lot. Anything above 10% I have a close eye on; the majority of these default. My defaulted loans were often middle risk loans that died with few or little warnings halfway through their expected life. From what I see online hardly anything below 6.5% in the MLA ever defaults.
My 2 kopeks
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on Jul 2, 2019 12:46:26 GMT
If you read your case examples at least two of the three people invested in very few loans (and they may have been attracted to the high interest ones)
|
|
cb25
Posts: 3,522 
Likes: 2,666
|
Post by cb25 on Jul 2, 2019 13:08:42 GMT
"This company is unbelievable. They loan out up to 20 % of your capital in automatic lending. The number of defaulted loans are huge. I lost 60% of my capital on 4 loans to the same company divided up into 4 projects. On top of that there is 5 to 10% more defaults. Nearly 70% of all my money is defaulted. I think the timing of my money going in was extremely unlucky so some people will have a decent experience but this is unacceptable. Do not touch" Historically, 20% of an AC account (e.g. GBBA1) could be invested in a single loan, see thread here. Happened to me, I have 20% of my then GBBA1 money stuck in loan 227.
The 4 related loans may be a reference to loans 437-440 (which luckily I was never in), see thread here
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on Jul 2, 2019 13:18:09 GMT
"This company is unbelievable. They loan out up to 20 % of your capital in automatic lending. The number of defaulted loans are huge. I lost 60% of my capital on 4 loans to the same company divided up into 4 projects. On top of that there is 5 to 10% more defaults. Nearly 70% of all my money is defaulted. I think the timing of my money going in was extremely unlucky so some people will have a decent experience but this is unacceptable. Do not touch" Historically, 20% of an AC account (e.g. GBBA1) could be invested in a single loan, see thread here. Happened to me, I have 20% of my then GBBA1 money stuck in loan 227.
The 4 related loans may be a reference to loans 437-440 (which luckily I was never in), see thread hereI thought that problem was fixed (comforts to those still suffering). A commercial equivalent of the right too be forgotten?
|
|
djay
Member of DD Central
Posts: 121
Likes: 87
|
Post by djay on Jul 2, 2019 13:36:15 GMT
I'm comfortable with access accounts and GBBA2 -at the moment. Keeping a close eye on provision funds and the tinkering with their calculations along with volumes and defaults.
The issue that nags a little is the prospect of an IPO or large institutional fundraise. There were clear signs of drives for quantity of over quality at FC and TC to bolster the size of the loan book before their respective IPO and institution sale.
|
|
cb25
Posts: 3,522
Likes: 2,666
|
Post by cb25 on Jul 2, 2019 13:45:54 GMT
Historically, 20% of an AC account (e.g. GBBA1) could be invested in a single loan, see thread here. Happened to me, I have 20% of my then GBBA1 money stuck in loan 227.
The 4 related loans may be a reference to loans 437-440 (which luckily I was never in), see thread hereI thought that problem was fixed (comforts to those still suffering). Hopefully fixed for current/future allocations, as you suggest decidely not fixed for those of us stuck with 20%s stuck in non-performing loans.
|
|
jlend
Member of DD Central
Posts: 1,817
Likes: 1,444
|
Post by jlend on Jul 2, 2019 15:58:00 GMT
There are countless reviews on Trustpilot and elsewhere of people who are suffering high default rates. Three examples below. Why is Assetz Capital experiencing such high default rates for quite a few lenders? Why is their Provision Fund not being used to pay these distressed lenders? "My average interest rate is displayed as 8%. In fact I am earning 2.02%, the majority of which comes from one good loan among dozens of bad ones. There are a number of loans with no short-term prospect of recovery. I recommend avoiding AC at all costs." "This company is unbelievable. They loan out up to 20 % of your capital in automatic lending. The number of defaulted loans are huge. I lost 60% of my capital on 4 loans to the same company divided up into 4 projects. On top of that there is 5 to 10% more defaults. Nearly 70% of all my money is defaulted. I think the timing of my money going in was extremely unlucky so some people will have a decent experience but this is unacceptable. Do not touch" "I have invested money in 7 loans with Assetz and 5 of them have gone into default. 2 of them finally paid up after a long protracted process of repossession, one I got all of my capital back and some of the interest." This is the independent analysis of the AC returns brismo.com/market-data/Clearly not everyone will experience the same average returns but it gives an independent view of the loan book.
|
|
p2pfan
Member of DD Central
Full-Time Investor
Posts: 739
Likes: 830
|
Post by p2pfan on Jul 9, 2019 0:36:56 GMT
There are countless reviews on Trustpilot and elsewhere of people who are suffering high default rates. Three examples below. Why is Assetz Capital experiencing such high default rates for quite a few lenders? Why is their Provision Fund not being used to pay these distressed lenders? "My average interest rate is displayed as 8%. In fact I am earning 2.02%, the majority of which comes from one good loan among dozens of bad ones. There are a number of loans with no short-term prospect of recovery. I recommend avoiding AC at all costs." "This company is unbelievable. They loan out up to 20 % of your capital in automatic lending. The number of defaulted loans are huge. I lost 60% of my capital on 4 loans to the same company divided up into 4 projects. On top of that there is 5 to 10% more defaults. Nearly 70% of all my money is defaulted. I think the timing of my money going in was extremely unlucky so some people will have a decent experience but this is unacceptable. Do not touch" "I have invested money in 7 loans with Assetz and 5 of them have gone into default. 2 of them finally paid up after a long protracted process of repossession, one I got all of my capital back and some of the interest." This is the independent analysis of the AC returns brismo.com/market-data/Clearly not everyone will experience the same average returns but it gives an independent view of the loan book. Thanks. The Brismo statistics are interesting, but not insightful. They show 3.0% for 1 Year net return and 18.6% for 3 Year net return. Why would there be such a huge difference in the metrics for 1 and 3 years?
|
|
jlend
Member of DD Central
Posts: 1,817
Likes: 1,444
|
Post by jlend on Jul 9, 2019 6:40:23 GMT
p2pfanYou would have to ask AC or BRISMO for the specific reasons. You can buy the detailed analysis for Assetz for 50 pounds from BRISMO, I never have so don't know what this would tell. you. AC may be able to give you some more detailed insight if you ask. The 1 year return will contain a higher proportion of more recent loans than the 3 year return. Brimso appear to be assessing these as having a lower return. This could be a combination of more risky loans, higher defaults, lower interest rates on more recent loans, lower expected recoveries, the PFs on some accounts potentially unable to cover losses etc. There is no way of knowing from the stats what are the primary drivers for the difference between the 1 and 3 year statistics.
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Jul 9, 2019 6:47:13 GMT
This is the independent analysis of the AC returns brismo.com/market-data/Clearly not everyone will experience the same average returns but it gives an independent view of the loan book. Thanks. The Brismo statistics are interesting, but not insightful. They show 3.0% for 1 Year net return and 18.6% for 3 Year net return. Why would there be such a huge difference in the metrics for 1 and 3 years? It's not an annualised rate. The 3y net return is the % return over 3 years, so in annualised terms it's more like 3% v 6%. I wouldn't take too much notice of these 3rd party comparisons. Platforms are generally not comparable in this way as they treat defaults, late loans, write offs, recoveries differently. The 1y return for me looks very low. They must be assuming a high percentage of losses for certain suspended loans (maybe the Castle?). The only thing I can be certain of is that stats like this will be proved wrong over time as actual realisations become known.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jul 9, 2019 7:03:36 GMT
About 10% of loans (12% by value) in the QAA are currently suspended.
|
|
