james21
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Post by james21 on Dec 9, 2017 9:07:56 GMT
Of the 20 loans on their statistics page there are 2 in default; I know as I am in them. The stats page makes no reference to defaulted loans or recovery rates. So you only know about the defaults if you are in them. Perhaps "we're an open book" is a bit limited in scope. Octopus has no provision fund. I only invested because it is a quick access account. Now I think a return of little over 4% is not good value given the default risk and lack of provision. Hopefully being property based lending a good recovery should be possible, however a shortfall may well wipe out any return I have made
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macq
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Post by macq on Dec 9, 2017 10:10:20 GMT
I only check my account for the interest payment or if i make a deposit and did spot 2 loans are late with repayment on my account mid week.Not sure if late by a few days is defaulted and when this happened a few months back with a loan i had, it was back on track a couple of days after i spotted it so fingers crossed this time. What would worry me is that if you want to withdraw money you can't from a loan paying late so i would expect the same rule in reverse and no payment to be put in that loan until its back on track
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greatmarko
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Post by greatmarko on Dec 11, 2017 10:08:08 GMT
The message I see in my dashboard is "We’re still waiting for a payment on 2 of the loans in your portfolio. But not to worry, we’re in touch with the borrowers to make sure it’s paid as quickly as possible, and you’ll continue to earn interest as before. In the meantime, the rest of your portfolio is available for withdrawal."
So, the indication seems to be that a couple of payments are simply "late" rather than the loans have been "defaulted"?
If infact these two loans have "defaulted", OC need to state this rather than just indicating that payments are late.
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ton27
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Post by ton27 on Dec 11, 2017 10:34:58 GMT
I have 5 loans which are late - Octopus should be telling lenders which loans they are, how long they have been late and what they are doing about it!
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james21
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Post by james21 on Dec 11, 2017 13:18:41 GMT
I dont know about 5 late but they only have 20 loans live according to their stats page. I have withdrawn everything except the money on the two loans, which I cant do
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Post by octopusjoe on Dec 11, 2017 14:51:34 GMT
Of the 20 loans on their statistics page there are 2 in default; I know as I am in them. The stats page makes no reference to defaulted loans or recovery rates. So you only know about the defaults if you are in them. Perhaps "we're an open book" is a bit limited in scope. Octopus has no provision fund. I only invested because it is a quick access account. Now I think a return of little over 4% is not good value given the default risk and lack of provision. Hopefully being property based lending a good recovery should be possible, however a shortfall may well wipe out any return I have made Hi James, thanks for your message – and everyone else for your responses. Transparency has been a fundamental focus for us since we first set up Octopus Choice, and something we’re always looking at. We’ve already got plans in place to improve our stats page over the next few months in relation to this, so your thoughts on it are really helpful and have been reported to the rest of the team. On your provision fund point, don’t forget that we invest 5% in each and every single loan alongside our investors, with investors’ money protected ahead of ours. This often represents a higher proportion of the loanbook than other provision funds – and it's our own money, which we think is important in aligning our interests with those of investors. And yes, macq, you’re right. If a loan has defaulted, we of course won’t invest any other investor’s money in it until it’s back on track.
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greatmarko
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Post by greatmarko on Dec 11, 2017 15:16:34 GMT
Thanks for the reply octopusjoe, but please can you clarify: " We’re still waiting for a payment on 2 of the loans in your portfolio. But not to worry, we’re in touch with the borrowers to make sure it’s paid as quickly as possible, and you’ll continue to earn interest as before. In the meantime, the rest of your portfolio is available for withdrawal." Have these two loans actually DEFAULTED, or are payments from the borrower simply late?
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liso
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Post by liso on Dec 11, 2017 15:49:24 GMT
Without knowing whether late really means defaulted, it's impossible to assess the current risk. Clarification would be appreciated.
OC's loanbook shows LTVs up to 76% which in a default makes a good recovery questionable, even with the platform taking a 5% first loss.
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puddleduck
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Post by puddleduck on Dec 11, 2017 16:00:28 GMT
I have 1 late - too be honest, I took out the bulk of the money as the despite of the lip service, the OC do not seem responsive to feedback or comment, so voted with my feet about 6 weeks ago, so I have very little left. With the IMHO totally broken investment model they used which I've posted about here: p2pindependentforum.com/post/223102/thread I was concerned that it was hard to get a good investment spread with far too much money going into the same loans over and over, and not into the new 'open loans' So I got out leaving only a token amount as I feared defaults and having too many eggs in too few baskets.
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Post by davee39 on Dec 11, 2017 20:03:09 GMT
In the early days loans would sometimes get late and then get up to date. Recently I noticed late loans appeared to be sticking, and a change in the 'reassuring' message to non-performing. Time to leave, with currently four loans (about 7% of the portfolio) in trouble. Lack of transparency (ie no information regarding the problem loans) was the main reason, the low rate of return cf the higher than expected risk was another.
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Post by octopusjoe on Dec 14, 2017 18:01:19 GMT
Thanks for the reply octopusjoe , but please can you clarify: " We’re still waiting for a payment on 2 of the loans in your portfolio. But not to worry, we’re in touch with the borrowers to make sure it’s paid as quickly as possible, and you’ll continue to earn interest as before. In the meantime, the rest of your portfolio is available for withdrawal." Have these two loans actually DEFAULTED, or are payments from the borrower simply late? Hi guys, sorry for the delayed response on this but hopefully the below will answer your questions. At the moment we have 6 loans on the platform that are non-performing – so that’s 2.8% of the Octopus Choice loan book. Five of these are late-paying, but we expect these to be back on track soon. The remaining one we are currently in the process of taking charge of the property. At present, loans in both these states do show as the same on the platform. We are in the process of updating this, as I said before, along with the transparency of our entire stats page. We are really sorry for any confusion this has caused in the meantime. Users are unable to withdraw from any of the non-performing loans, however we don’t believe it will result in capital losses. Of course, no new money will be invested in these loans either.
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liso
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Post by liso on Dec 14, 2017 18:39:56 GMT
Thanks for the info octopusjoe. Your clarification is appreciated, as is your responsiveness.
It will be helpful when this information is routinely available to us on the platform.
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Post by octopusjoe on Dec 15, 2017 10:20:35 GMT
Thanks for the info octopusjoe . Your clarification is appreciated, as is your responsiveness.
It will be helpful when this information is routinely available to us on the platform. Thanks liso! We'll be implementing it as soon as it's ready.
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littonowl
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Post by littonowl on Jan 24, 2018 16:40:19 GMT
Unfortunately found the site impossible to navigate round on my desktop (has it been designed with mobiles in mind?) so can't see if the default info has been updated, but I currently have 5 in my p/f...
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james21
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Post by james21 on Feb 2, 2018 19:38:25 GMT
There is no info on their web site about defaults, between me and wife 3 defaults; for 4% return not worth it; AVOID
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