coop
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Post by coop on Feb 27, 2015 13:16:39 GMT
Afternoon all,
I'm yet to have a default on Fortunate Chance since I started investing in late October; but this one looks like a prime candidate for the first.
It's currently 20 days late with 11 payments still outstanding; on the 4th day of lateness Flippant Chasers commented thusly:
"The borrower has informed us that they are currently experiencing cash flow issues and have requested a payment plan. We are now in the process of agreeing a payment plan with the borrower and will update investors with any further developments."
After enquiring on the 23rd (with very, very low hopes it must be said) I got a response back on the 24th(!) from the lovely Jack who informed me:
"With regards to loan 1829, the collections and recoveries team are continuing to establish both the full financial situation, and an appropriate payment plan for the borrower. A comment will be added by the team once there have been significant developments"
I don't know about you but if it takes over two weeks to figure out how much money a company has you probably ain't dealing with a brilliant businessman!
Right that's my little (rather reserved I thought) rant over; hope you aren't in on this one and if you are of course the best of luck to you in seeing your money again.
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SteveT
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Post by SteveT on Feb 27, 2015 14:03:30 GMT
Happily I've none of that one, but I quite like the new "traffic lights" system that they've mentioned starting to use on loan 6858 (currently 12 days late):
25 Feb 2015 Further to the prior comment, we are implementing a R.A.G. rating system. This is a Red, Amber and Green indicator for the prospect of recovery. This system is for investors to easily be able to determine the potential prospects of recovery, with Green being a good recovery, Amber being an uncertain recovery and Red being an unlikely recovery. We are expecting February's payment very shortly. Accordingly, this loan has been given a Green rating as we expect full repayment on this loan. We will keep investors updated on the payment which is due by the end of February 2015.
20 Feb 2015 Due to unforeseen personal circumstances, the borrower has been unable to make payment. The borrower has informed us that we can expect payment by the end of February
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blender
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Post by blender on Feb 27, 2015 14:05:48 GMT
Hi Coop, sorry to hear about 1829 and do not have it. Just wondering if you started in October why you have a loan so ancient. We have an account started in March 2014, no lates and no defaults yet, but no loan older than the account. There are those who say you should sell a loan six months old - that is a bit crude because it should depend on the band. The problem with a loan which is 2.5 years old, at a guess, is that there is no supervision other than collecting the repayments, and we have no idea how the company now compares with the company then. If 1829 was an A+ and very solid with a fantastic interest rate then ok, but I have even sold the car supermarket (of hallowed memory), for being too old, A+ over 13%.
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coop
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Post by coop on Feb 27, 2015 14:13:38 GMT
I bought a lot on the SM when I first started; hence a few very old loans.
I've learnt as I've gone on and very rarely buy on the SM now (I rarely buy at all on FC in fact, partly due to this place).
I've also adopted the buy to hold for 3-6 months strategy concentrating on higher % loans as I move my money away to other platforms in search of high interest secured loans.
But that's just me!
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coop
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Post by coop on Mar 6, 2015 16:45:19 GMT
Think I am the only mug here with a part in this loan; but I shall post the update nevertheless:
"05 Mar 2015: We have agreed to accept a half-payment for this month. The borrower wants to spread the arrears over the remaining term of the loan. We would prefer the loan to return to fully performing sooner, but there are only 11 payments left to make under the loan contract, so we would rather the business survived rather than push it into another cash flow crises (which might result in another creditor causing the business to fail). On a RAG (Red, Amber, Green) rating system we have given this loan a Green status because we expect the loan to return to be fully repaid in due course."
Of course accepting a half payment for the month in Financial Clemency terms will mean "They're going to give us some dosh and you won't see any of it until they give us more".
Also a little worrying to be accepting half a payment (which stand at about £3.5k) when the next £3.5k is due tomorrow - will it take them a month to cough up half that payment as well? In which case 'Green' soudns optimistic.
I am rating this Satsuma - might end up with a juicy return or it might turn out all shrivelled and horrible when you peel back a layer...
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markr
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Post by markr on Mar 9, 2015 15:18:41 GMT
Think I am the only mug here with a part in this loan; but I shall post the update nevertheless: Nope, there's another mug here. They have made the agreed partial (presumably half) payment today so maybe we're ok with this one.
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coop
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Post by coop on Mar 9, 2015 18:23:09 GMT
Yep, fingers crossed more money rolls in!
Sorry to hear you're holding this loan too, hope you're not in for too much, I've got 20.33 exposure so not too damaging.
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markr
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Post by markr on Mar 9, 2015 20:34:14 GMT
A massive £13.60 for me, so I'm not too stressed. My strategy with Fiddly Change is generally "maximally diversified" so that any single bad debt doesn't cause too much pain.
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coop
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Post by coop on Apr 8, 2015 15:08:32 GMT
I contacted FC about this again yesterday; seeing as the company is now 2 1/2 months in arrears (over £8k on a £100k loan with a total of £34k to repay).
They had no further update; as they are "still continuing attempts to negotiate a payment plan with the borrower". The borrower first requested a payment plan on Feb 1st (!)
I'm not holding my breath...
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coop
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Post by coop on May 8, 2015 8:18:06 GMT
Finally on 1st May:
"01 May 2015 The borrower's advisors have been in contact to inform that the business is till experiencing cash flow issues and has proposed a payment plan that would see the debt paid off in full by June 2016. Keeping the investors' best interests in mind, we have agreed to the terms in the proposal and will be defaulting the loan in order to facilitate the proposed payment plan. On a RAG (Red, Amber, Green) rating system we have given this loan a Green status because we expect the loan to return to be fully repaid in due course."
Seven days later they haven't got round to defaulting it yet.
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