Financial Ombudsman

I feel your pain, but sadly there are too many caveats in the terms and conditions. In essence, you have given them permission to lose all your money if that's the way it pans out.
The ombudsman would not be interested in the subtlety of autobid and so on.
Unless you can cite something objective, concrete, measurable that FC have failed to do, then I suspect any complaint would be in vain.

cobi : Have you received “unsuitable advice” from Funding circle to invest in a peer-to-peer scheme? It's the only way to get issue resolved.

Autobid can't ruin the whole portfolio. At the moment, the target rate for new accounts is 7.2% after fees and bad debts deducted. Unless your portfolio is having 0% return, most 95% investors achieves over 4%+ by lending to 100+ different business loans.

I believe I have been miss sold. The projected rate when I invested was 7.5% when did it go down to 7.2? Using Funding Circles equations the weighted average projected rate for 46 secondary market loans I have received was 6%.

I wouldn’t complain if I could back out but I don’t want to loose the rest of my portfolio.



support.fundingcircle.com/hc/en-us/articles/214636566-What-are-the-estimated-bad-debt-rates-and-how-are-they-calculated-

www.fundingcircle.com/investors/current-estimated-return


Below is a spreadsheet to calculate projected return from data from transactional statements and downloaded loan parts.

Put all loan parts into sheet 'funding-circle-all-loan-parts'
copy lines with SM loans from transactional statements into calcs and it should work out the projected return (not accurate as the loan is part way through lifecycle)
I have left an example line in both sheets


FC return1.xlsx (14.2 KB)

I was more than happy with Autobid at the beginning which was why I continued to invest. Then I noticed my projected return drop and upon investigation and found a load of high value SM loans had been bought which had poor returns. Until the loans prior to fixed rates have washed through the system there is the risk of picking these up and I think I got unlucky.

Cobi, I may be wrong but I think your projection misses the fact that FC's projected return is compounded by re-lending the repayments and interest from your loans. If you just take the loans you have and calculate the return from them as they are repaid then you might be about 0.5% (if I remember correctly) below FC's rate.

The 7.5% was not promised - they have never done that. It is always a projection based on the last 'n' loans accepted. They can change the interest rates and the projections will change. You have to read their words quite carefully and mind the weasels.

I think that a good number of us are in your position Cobi. I put quite a few  extra £k into FC manually in the days leading up to the 18 September with the view that I would then let the portfolio run down over the loan period. FC has not taken away your portfolio only the right to sell selectively.

This is what is now happening. I will stick with all of the loans to completion.

Interesting. From the clues given we can estimate the underlying distribution. Assuming the rates achieved by the population of investors is Normally distributed, the two data points (50% >= 7.5%, 65% >= 7.2%) tell us that that mean is 7.5% and the s.d. is about 0.75%.

We can then use a normal distribution calculator to work out other probabilities. For example, around 1 in 50 unlucky investors will return less than 6%, but the luckiest 1 in 50 will return over 9%. The 5th and 95th percentile work out as 6.2% and 8.8%, which basically agrees with FC's graph on their stats page, at least to the resolution at which we can read that graph.