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Post by thunderchild on Sept 10, 2017 9:46:43 GMT
I'll miss all the exciting promises (starting with the forthcoming API, which last time I looked you could still register for) and the long list of 'coming soon' technical fixes. What I won't miss, because it never happened, was the delivery of any of it. I'm glad I'm not going mad, I recently exchanged emails with FC support and they denied the existence of the API and said that people using software to access the website where causing performance issues. Funding circle are a bunch of liars, they come up with a bad idea one day and then deny all knowledge of it when they realise they were wrong, so much for doing lending differently from the banks, at the time of it's announcement I was very unhappy as FC clearly panders to the big flippers that take no risk and make a fortune out of those of us actually taking the risks. Strangely now that the change has been announce the flippers are in a hurry to ditch those "E" loans and they can be bought off for as low as 0.1% instead of the usual 1.5-3% ripoff rates. Granted i was slightly rash in lending £40 to businesses and in one case £80 when I did not have the capital to make that a low risk my return has been low and strangely it's the safe ones that often fail. Of course this is hard to evaluate as they remove the risk band when the load defaults so unless you waste a lot of time tracking your loans and storing information about each one you never know what risk band is actually the riskiest.
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Post by Deleted on Sept 10, 2017 13:03:34 GMT
I invested almost exclusively in secured property related loans. I decided to leave FC when they announced the end of property loans. As an accountant, I would never invest substantively in the unsecured loans on FC either because of lack of due diligence information or because of likelihood of repayment issues. So no more property meant no more me. I was having an orderly run down of my loans and taking all realised cash out of FC when they made the announcement about the end of manual choice timing of loans. I was so angry about this that I sold all the remaining loans that I could that same day. I am a grown up person and do not need FC to show me their patronising arrogance about trying to make the site fairer for me. It is for me to decide what level of risk I take with my investments, not them. I will not miss their ‘nanny state’ attitude and message 'spinning'. I had just under £17,000 invested when I decided to leave FC and stopped investing further. That figure had been substantially reduced by the time we got the no more manual investing choice communication from them. After I had sold all the remaining loans that I could on the communication day, I was left with the overdue loans. On that day, after loans sales were completed, against the original close to £17,000 maximum level of investment that I had earlier, the value of overdue loans was approximately 13%. The true percentage was really higher than this because of the earlier winding down of loans which had been taking place so I should be comparing to a figure much less than the £17,000. This is an unacceptable level and indicative of something not right with how FC have been running property loans. To be fair to FC, I have had no bad property development loans to date. However, there have been too many overdue property loans with vague vanilla comments updates that mostly do not mean much at all. I will not miss the quality of their property loans management. I cannot wait to be completely out of the FC orbit but fear that I will be held there for months to come until my overdue loans are repaid. The issue of the Tewkesbury loans being relisted as A loans when a few weeks earlier FC had said that they were going to default them because they were so overdue makes me wonder what is going on behind the scenes at FC. I will not miss this kind of approach to running a business. The PR on this webpage is most illuminating. www.thedrum.com/news/2017/09/06/funding-circle-reveals-new-brand-positioning-and-identity-with-made-do-more-campaignI do not know what planet FC are on but it is most definitely not the same as the one that I am on so clearly time for us to part company. I cannot wait for the day when I can close my account with them. |
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Post by thunderchild on Sept 10, 2017 14:37:34 GMT
unfortunately they have fixed one problem and created another. All they needed to do was STOP the damn flippers, you can only buy up to 1% or whatever of any loan, this would have stopped the flippers dead in their tracks and allowed us all to have a fair share of what loans we wanted. The only way to get hold of D and E loans has been on the secondary market where you pay up to 3%, so if a flipper turns around a loan every 2 weeks that is 72% interest, muggins gets 20% and has to shoulder the risk for up to 5 years of that loan defaulting. I could have done the same as the flippers if i had the money to pay someone to write the software they were using. But FC have taken control away from us as well as the flippers, seems they don't want to admit that they have let speculators run riot after all of their pansy talk about alternative to the banks. I don't know what other similar but better run platforms there are. I have 28K in it I manage for my father and that has done well, but my own money that varies from a few thousand to 7K has not done terrificly and strangely plenty of A loans default so I do wonder about the categorisation of loans. Unsurprisingly a loan to a law firm floundered as fast as it was setup and they did FC up like a bunch of kippers.
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Post by grahamreeds on Sept 10, 2017 16:44:31 GMT
No one forces you to buy E loans at 3%. If no one bought them then the price would drop. Most E loans were at .3% and since the announcement that has risen to .5%.
Market forces.
I am expecting that by the end of this week you will see a lot of churn on the market.
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adrian77
Member of DD Central
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Post by adrian77 on Sept 10, 2017 18:29:00 GMT
Pass me the sick bag!
Well given that this latest PR twaddle seems to have annoyed most of us I would say it is worse than a complete waste of money. This PR company was founded in 2014 - I give it 2 years!
I don't invest in any company that seems unable to honestly communicate with its clients without paying people to produce such tosh....
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Post by thunderchild on Sept 10, 2017 18:57:54 GMT
No one forces you to buy E loans at 3%. If no one bought them then the price would drop. Most E loans were at .3% and since the announcement that has risen to .5%. Market forces. I am expecting that by the end of this week you will see a lot of churn on the market. But this is the problem, if I want to have E rated loans I can only buy them from a speculator because FC has let them take over the site while putting their fingers in their ears and singing lalalalalalalala to themselves when we complain, so I am left with A+, A, B, and C loans, A loans go south more often than they care to admit which they don't by removing the risk band and frankly the E loans go south only as much from what I can tell but don't know for sure because I'm not allowed to know........... Since the announcement the speculators are selling out at 0.1-1% instead of 2-3% often under 0.5% as they won't want to get stuck with them being speculators and all they can do later is take their money out for no gain and then put it back in. I bet they are just taking it out and buggering off somewhere else to speculate, I mean who wants to go from over 70% return with no risk to 7.5% with all of the risk. if they sell them off before the 18th they can at least get some return and take their money elsewhere.
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Post by grahamreeds on Sept 10, 2017 21:30:57 GMT
You are allowed to know. Download the loan book and load it up in Excel.
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Post by df on Sept 11, 2017 2:06:39 GMT
Stock FC phrases: "no financials will be displayed for this company, as they are not considered relevant."
"the borrower is working hard to"
"the borrower has advised that" "highly experienced property team"Display of financials won't be relevant for property development loans as they are assets secured. The other phrases sound similar to Ly updates.
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Post by df on Sept 11, 2017 2:25:29 GMT
No one forces you to buy E loans at 3%. If no one bought them then the price would drop. Most E loans were at .3% and since the announcement that has risen to .5%. Market forces. I am expecting that by the end of this week you will see a lot of churn on the market. But this is the problem, if I want to have E rated loans I can only buy them from a speculator because FC has let them take over the site while putting their fingers in their ears and singing lalalalalalalala to themselves when we complain, so I am left with A+, A, B, and C loans, A loans go south more often than they care to admit which they don't by removing the risk band and frankly the E loans go south only as much from what I can tell but don't know for sure because I'm not allowed to know........... Since the announcement the speculators are selling out at 0.1-1% instead of 2-3% often under 0.5% as they won't want to get stuck with them being speculators and all they can do later is take their money out for no gain and then put it back in. I bet they are just taking it out and buggering off somewhere else to speculate, I mean who wants to go from over 70% return with no risk to 7.5% with all of the risk. if they sell them off before the 18th they can at least get some return and take their money elsewhere. FC's grading system remains to be a mystery.
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bg
Member of DD Central
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Post by bg on Sept 11, 2017 5:56:34 GMT
Stock FC phrases: "no financials will be displayed for this company, as they are not considered relevant."
"the borrower is working hard to"
"the borrower has advised that" "highly experienced property team"Display of financials won't be relevant for property development loans as they are assets secured. The other phrases sound similar to Ly updates. Yes but there will still be loan updates after the 18th
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Post by valerieb on Sept 11, 2017 9:17:58 GMT
......and strangely plenty of A loans default so I do wonder about the categorisation of loans ........... A you're abominable, B you're so bastardly, C you're a calamitous waste of time. D you're deplorable and E your egregiousness really is remarkably sublime.
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voss
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Post by voss on Sept 11, 2017 13:57:18 GMT
and
A+ you're 'Aving a laugh
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Post by thunderchild on Sept 11, 2017 16:28:09 GMT
You are allowed to know. Download the loan book and load it up in Excel. The risk band is removed!
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Post by grahamreeds on Sept 11, 2017 19:17:47 GMT
You can still work out the categories and calculate the percentage of defaults.
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bg
Member of DD Central
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Post by bg on Sept 11, 2017 19:19:41 GMT
You are allowed to know. Download the loan book and load it up in Excel. The risk band is removed! If you look in the loan comments it will say what band the loan originally was (not that it really matters)
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