ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Oct 28, 2016 19:12:15 GMT
The 8.1% quoted is a disgrace. They say 'was' but when you look at the small print it is calculated on expected future bad debt. So in what way is it correct to say 'was'. My bad debt rate (assuming nothing that is late comes good) is creeping up to 20% in the last year. If I had the time or inclination I would complain as this is clearly misleading, even with the caveat. I was sure you were not supposed to make headline claims that are not consistent with the truth. It's a bit like me starting a weight loss business and saying 'our clients have on average lost 2 stone in the last year*. With the * being 'expected weight loss next year. My clients actually put on a stone.... you get the point. Do you have any parts in the defaulting loans?
|
|
Steerpike
Member of DD Central
Posts: 1,961
Likes: 1,680
|
Post by Steerpike on Oct 28, 2016 19:21:03 GMT
In just over 13 months I have invested in over 50 loans, overall XIRR 18.69%, excluding promotions and allowing for 50% loss on ABR and LGBBL this comes down to 7.67%, so my experience is not too far off the quoted 8.1%.
Whether 50% allowance is realistic and similar performance will continue is of course still to be seen.
|
|
pip
Posts: 542
Likes: 725
|
Post by pip on Oct 28, 2016 20:31:57 GMT
In just over 13 months I have invested in over 50 loans, overall XIRR 18.69%, excluding promotions and allowing for 50% loss on ABR and LGBBL this comes down to 7.67%, so my experience is not too far off the quoted 8.1%. Whether 50% allowance is realistic and similar performance will continue is of course still to be seen. Does the IRR of 18.69% include promotions, otherwise hard to see how such a rate is anywhere near achievable with the rates on offer? Yes 3 of my 21 loans now looks very dodgy, unfortunately 3 of my larger loans too. Including the intro bonus of £150 for £1000 invested (if you did refer a friend too) should not be used in this calculation as this promotion is no longer valid and should not be used to promote to new customers/encourage investors to invest more. I just think the claim that investors have earned 8.1% is clearly misleading, when they are using future predicted default rates to say what people earned, when what they actually earned was much lower. The average interest rate on the loans is around 10% (not scientific but about right), the lending fee is 1%. That only allows for under 1% of repayments to default. Based on current trends an estimate of defaults at 1% seems really hard to justify, when mine are about 20 times this amount (assuming they don't recover which I think so far none which have gone downhill have).
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Oct 28, 2016 21:58:43 GMT
Wow - things are getting weirder on the platform; duplication popping up to add confusion to the already mixed up offerings:
I'll keep this post OT and just refer to the recently-arrived opportunity for existing investors to apply for the 2.5% on £5k investment, which I thought reflected my earlier post and kaya 's initial impression that the original offer was an ideal opportunity as an up-sell to existing lenders - including last year's £1k recruits. However, those who are leaving will NOT be upset to learn in the smallprint that:
"Each Lender is eligible to receive only one cashback reward."
which seems to specifically exclude all those who were recruited by that campaign! Unless it's just been badly written by someone intending to highlight that £10k won't be eligible for £250?
As for me, although 2.5% isn't much of an incentive, with over £4k currently selling at about £20/week do I just lob in another £1k now for an effective 12.5% ?
|
|
ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Oct 28, 2016 22:52:07 GMT
Wow - things are getting weirder on the platform; duplication popping up to add confusion to the already mixed up offerings:
I'll keep this post OT and just refer to the recently-arrived opportunity for existing investors to apply for the 2.5% on £5k investment, which I thought reflected my earlier post and kaya 's initial impression that the original offer was an ideal opportunity as an up-sell to existing lenders - including last year's £1k recruits. However, those who are leaving will NOT be upset to learn in the smallprint that:
"Each Lender is eligible to receive only one cashback reward."
which seems to specifically exclude all those who were recruited by that campaign! Unless it's just been badly written by someone intending to highlight that £10k won't be eligible for £250?
As for me, although 2.5% isn't much of an incentive, with over £4k currently selling at about £20/week do I just lob in another £1k now for an effective 12.5% ? I understand that they have to be £5k new investment. If you already have £4k invested they do not count towards the £5k. However if you have some non-invested cash on the platform you can top that up to £5k and invest them (on top of what you already have invested). From their email: "Invest an additional £5,000 through the Loan Market and Loan Exchange and receive a 2.5% cashback reward into your LendingCrowd account! . . . .. Any non-invested funds that you currently have in your Investor Account will contribute towards the £5,000 target once invested. "
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Oct 28, 2016 23:37:20 GMT
cheers ablender;
I haven't seen the email yet, just going on Ts & Cs which say you have to keep £5,125 on the platform for 12 months, so more confusion and inconsistency. May just temporarily re-locate the grand and ask the question! Certainly won't be doing another £5k for 2.5% or indeed committing anything unless things improve - and that feint hope keeps receding.
Also, I briefly saw a banner on the homepage that this offer is "open to all lenders", so Ts & Cs are again stupidly misleading regarding " . . . only one cashback . . . ".
|
|
ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Oct 29, 2016 0:43:26 GMT
I think "only one cash back" refers to this particular offer, but this is only how I understand it. I could be wrong.
|
|
|
Post by ydobon on Oct 31, 2016 16:11:22 GMT
Luckily I have a fortnight to go until I can attempt to sell up and get my money out of LC. Official losses hover at around £60, although this should be doubled if they actually declared losses that were obviously going to happen.
Even FC was a more positive experience!
|
|
ablender
Member of DD Central
Posts: 2,204
Likes: 555
|
Post by ablender on Oct 31, 2016 17:53:50 GMT
Luckily I have a fortnight to go until I can attempt to sell up and get my money out of LC. Official losses hover at around £60, although this should be doubled if they actually declared losses that were obviously going to happen. Even FC was a more positive experience! Why do you say "luckily"?
|
|
|
Post by ydobon on Nov 1, 2016 10:49:07 GMT
Luckily I have a fortnight to go until I can attempt to sell up and get my money out of LC. Official losses hover at around £60, although this should be doubled if they actually declared losses that were obviously going to happen. Even FC was a more positive experience! Why do you say "luckily"? Luckily because I will be able to start selling up and get out of Dodge!
|
|
|
Post by GSV3MIaC on Nov 1, 2016 15:30:04 GMT
I think you meant to say you ONLY have a fortnight to go then?
|
|
|
Post by ydobon on Nov 2, 2016 15:42:24 GMT
I think you meant to say you ONLY have a fortnight to go then? I think that could safely be assumed from the context of my comments
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Nov 4, 2016 13:24:35 GMT
Yes, it appears the offer is open to everyone now. It didn't interest me before I decided to sell up, anyway. The prospect of trying to sensibly invest £5k within 30 days is not very appealing. No new loans all week, the two loans which finished last week are still pending and the interest rates on the loan exchange are rather poor. If you want to get better rates on the loan exchange (SM) you need to play around with the amount you want to buy. The rate can change considerably.
This is true, and I've seen up to around 2% improvement, but in my experience it only works with smaller purchases - presumably once you go much above the minimum holdings the higher rates get blended down.
As for the offer, it will be interesting to see how the Ts & Cs are interpreted - but with the most recent 2 loans STILL apparently pending (I didn't go for either, so haven't been informed) and the 2 new ones decidedly unappealing any £5k recruits will need to invest bravely.
|
|
|
Post by lionelrichtea on Nov 4, 2016 15:11:45 GMT
If you want to get better rates on the loan exchange (SM) you need to play around with the amount you want to buy. The rate can change considerably.
This is true, and I've seen up to around 2% improvement, but in my experience it only works with smaller purchases - presumably once you go much above the minimum holdings the higher rates get blended down.
As for the offer, it will be interesting to see how the Ts & Cs are interpreted - but with the most recent 2 loans STILL apparently pending (I didn't go for either, so haven't been informed) and the 2 new ones decidedly unappealing any £5k recruits will need to invest bravely.
Both are still pending. One is waiting for the purchase of the other business to be completed, as mentioned in an e-mail from LendingCrowd yesterday. So far no explanation received for the estate agent, which has been pending even longer.
|
|
micky
Member of DD Central
Posts: 651
Likes: 536
|
Post by micky on Nov 4, 2016 15:54:05 GMT
Especially as they are the second P2P to be awarded full FCA authorisation - Shame on the rest..
Hot on the heels of our recent funding partnership with Scottish Investment Bank we are delighted to announce that we have moved from interim to full FCA authorisation from 1st November 2016. We are the first peer-to-peer business lender to move from interim to full authorization status and the second in the industry to do so.
This means that LendingCrowd has demonstrated that it meets the rigorous statutory requirements of the FCA.
FCA authorisation matters for a number of reasons and indicates that we:
• have been subjected to detailed due diligence
• are committed to treating customers fairly
• have robust operational processes in place.
Full authorisation also paves the way for the launch of our Innovative Finance ISA product offering investors peer-to-peer investment opportunities within a tax-free wrapper.
Our CEO Stuart Lunn commented: “Peer-to-peer investing is growing in popularity every day. We are supportive of industry regulation and we’re extremely pleased that LendingCrowd has reached this milestone. It unquestionably adds credibility and trust in a relatively young marketplace in which our aim is to be a major player. It also means that we can look to launching our ISA product both direct to investors and through investment platforms, several of which we are already engaged with.”
Kind regards,
The LendingCrowd Team
|
|