msenanna
Member of DD Central
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Post by msenanna on Dec 27, 2017 15:18:51 GMT
I like AC for its ease of use and professional approach. Unfortunately, like many others I am withdrawing funds as the rates have dropped significantly with no apparent change in the risk profile. I assume it is AC making a bigger margin. I am not sure it's AC making a bigger margin, the market is more competitive now with a wider choice of platform for borrowers. AC are no doubt offering borrowers rates such that they borrow with AC and not elsewhere for a cheaper rate. This reduction in rates is happening on other platforms e.g. COL (bling) and UB.
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Post by bikeman on Dec 29, 2017 15:03:19 GMT
Thanks to a lack of diversification a substantial amount of my money was locked into bad loans almost immediately after investing in ACs 'black box' accounts.
I think that it is appalling that individual investors are overexposed in these accounts: losses in these accounts should be equally shared across all investors not levied against individuals who had no choice within which loans AC invests their money.
I had no choice in the selection of these loans, was fed a lie that investments were diversified and protected by the reassurance of a 'provision fund' which in my experience AC do not use, preferring to lock in lenders funds indefinitely without interest paid.
AC are apparently quick to suspend loans but are not very good at managing those suspensions or providing updates to lenders. For months I have been fed a series of updates, usually along the lines of 'meeting with the borrower was cancelled or we met the borrower and nothings changed, we'll provide further update next month'. Asking questions of AC just gets a referral to the latest non-update.
I have to question AC's due diligence in setting up loans which within a matter of weeks they suspended indefinitely.
I have pulled out everything I can from AC and certainly would never recommend them.
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sarahcount
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Post by sarahcount on Dec 29, 2017 17:16:31 GMT
I only joined AC a few weeks ago and my first impressions were that the DD information was excellent but that the website was really slow and clunky.
I just went for the manual MLIA and found that my bids just sat there for days without being processed.
However this issue has now been resolved and I've been able to diversify across a large number of loans over a succession of deposits- albeit very small amounts in each loan while I take a view on the platform.
Most of the loans that I looked at on the SM looked reasonable although I did pass on a few second charges or higher risk sectors.
Joining AC has meant that I'm now in all the main page platforms. They seem competent and offer lots of DD information which is good if like me you actually like this sort of bedtime reading.
My average rate is quoted at 7.3% so not as good as available elsewhere but it provides diversification which mitigates against single platform failure.
I'm also hoping that they know what they're doing and the defaults can be avoided. (Always worrying to read of investors who have lost out)
Sarah
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Post by df on Dec 29, 2017 23:51:34 GMT
I would certainly recommend AC. I've been using it for over a year and so far had a positive experience. Unfortunately the rates have fallen since, but that didn't make me to reduce the amount I'm investing. The main 'pros' for me:
*The loan book is large - plenty of room for diversification
*Secondary market works very well
*Variety of accounts on the platform to suit different types of investors
*Provision fund for auto accounts
*Comprehensive DD performed by AC
*The wealth and quality of information available to lenders as well as constant updates
*Transparency, particularly after introducing "your loan holdings" for auto accounts
*Level of engagement with lenders (i.e. votes on making decisions)
*Low default rate comparing to many other platforms
*Good recovery history
*All loans are secured
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zlb
Member of DD Central
Posts: 1,422
Likes: 333
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Post by zlb on Dec 30, 2017 9:59:29 GMT
Thanks to a lack of diversification a substantial amount of my money was locked into bad loans almost immediately after investing in ACs 'black box' accounts. I think that it is appalling that individual investors are overexposed in these accounts: losses in these accounts should be equally shared across all investors not levied against individuals who had no choice within which loans AC invests their money. I had no choice in the selection of these loans, was fed a lie that investments were diversified and protected by the reassurance of a 'provision fund' which in my experience AC do not use, preferring to lock in lenders funds indefinitely without interest paid. AC are apparently quick to suspend loans but are not very good at managing those suspensions or providing updates to lenders. For months I have been fed a series of updates, usually along the lines of 'meeting with the borrower was cancelled or we met the borrower and nothings changed, we'll provide further update next month'. Asking questions of AC just gets a referral to the latest non-update. I have to question AC's due diligence in setting up loans which within a matter of weeks they suspended indefinitely. I have pulled out everything I can from AC and certainly would never recommend them. hi, thanks, what are the 'black box' accounts? It sounds from others' posts that going into the lower interest rate, already diversified accounts first and waiting for diversification in Feb could be OK. Would you think that if you approached them anew? In some respects the correspondence sounds a bit like problems on another platform but I've decided to ride through that issue and comms have improved there, a bit.... Not to say that the outcomes would be different though.
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zlb
Member of DD Central
Posts: 1,422
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Post by zlb on Dec 30, 2017 10:05:28 GMT
I would recommend the QAA and 30DAA if you don't mind accepting lower rates for less risk. They compare very favourably against RS Rolling if you are looking for quicker access to your money. I'm waiting for the improved diversification and PF to be launched before I dip a toe into the other automatic accounts. Although the PF will cover missed interest payments, it looks as though it could potentially still take years for any lost capital to be recovered. thanks. So with the pf, it could take years? I think this is different to eg Z who wait 4 months, but not secured, and they've got rid of it. I'd not thought of that aspect before, that secured loans will take longer to recover.
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zlb
Member of DD Central
Posts: 1,422
Likes: 333
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Post by zlb on Dec 30, 2017 10:14:33 GMT
I only joined AC a few weeks ago and my first impressions were that the DD information was excellent but that the website was really slow and clunky. I just went for the manual MLIA and found that my bids just sat there for days without being processed. However this issue has now been resolved and I've been able to diversify across a large number of loans over a succession of deposits- albeit very small amounts in each loan while I take a view on the platform. Most of the loans that I looked at on the SM looked reasonable although I did pass on a few second charges or higher risk sectors. Joining AC has meant that I'm now in all the main page platforms. They seem competent and offer lots of DD information which is good if like me you actually like this sort of bedtime reading. My average rate is quoted at 7.3% so not as good as available elsewhere but it provides diversification which mitigates against single platform failure. I'm also hoping that they know what they're doing and the defaults can be avoided. (Always worrying to read of investors who have lost out) Sarah thanks. Yes this type of bedtime reading can happen. This sounds different, where you have been able to diversify, whereas others say they have suffered from not being able to... Have you used succession of deposits in order to diversify by %, or to be cautious?
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zlb
Member of DD Central
Posts: 1,422
Likes: 333
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Post by zlb on Dec 30, 2017 10:19:21 GMT
I would certainly recommend AC. I've been using it for over a year and so far had a positive experience. Unfortunately the rates have fallen since, but that didn't make me to reduce the amount I'm investing. The main 'pros' for me: *The loan book is large - plenty of room for diversification *Secondary market works very well *Variety of accounts on the platform to suit different types of investors *Provision fund for auto accounts *Comprehensive DD performed by AC *The wealth and quality of information available to lenders as well as constant updates *Transparency, particularly after introducing "your loan holdings" for auto accounts *Level of engagement with lenders (i.e. votes on making decisions) *Low default rate comparing to many other platforms *Good recovery history *All loans are secured thanks. are you able to say how their DD compares with eg L or FS? Is the level of loan opportunity akin to that on FS? They get hold of quite a few at the moment. Does the SM enable sale at premium or discount (like C2F) or without like L? Thanks.
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ashtondav
Member of DD Central
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Post by ashtondav on Dec 30, 2017 11:36:47 GMT
I'm with FS and the DD can't be worse than them! But to be fair property loans to underfinanced developers ALWAYS go late - if they were solid operators they could get lower cost loans from the big banks.
I'm only in the quick access account until there is real diversification in the black box accounts. I also want to see the PF deliver recognisable action, governed by understandable rules. All the other platforms with a PF seem to be able to do this! At present the "fire and forget" accounts are nothing of the sort and are unfit for purpose. All of this is meant to be addressed end February. I would not invest serious money until we receive some clarity then, and I am prepared to suffer a lower return in exchange for this clarity.
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Post by df on Dec 30, 2017 11:39:01 GMT
I would certainly recommend AC. I've been using it for over a year and so far had a positive experience. Unfortunately the rates have fallen since, but that didn't make me to reduce the amount I'm investing. The main 'pros' for me: *The loan book is large - plenty of room for diversification *Secondary market works very well *Variety of accounts on the platform to suit different types of investors *Provision fund for auto accounts *Comprehensive DD performed by AC *The wealth and quality of information available to lenders as well as constant updates *Transparency, particularly after introducing "your loan holdings" for auto accounts *Level of engagement with lenders (i.e. votes on making decisions) *Low default rate comparing to many other platforms *Good recovery history *All loans are secured thanks. are you able to say how their DD compares with eg L or FS? Is the level of loan opportunity akin to that on FS? They get hold of quite a few at the moment. Does the SM enable sale at premium or discount (like C2F) or without like L? Thanks. DD is much better than with L and FS. AC has a very strong underwriting team. The amount of loans is similar to FS. I'm in more loans on AC than on FS. Many loans on FS are different tranches of the same loan, but presented as different loans, which makes it look like more loans. There is an option to to buy/sell at premium or discount, but I can't tell you how it works. I always trade at par on AC. Somebody else might be able to tell you more about premium/discount.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
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Post by ilmoro on Dec 30, 2017 11:44:09 GMT
Thanks to a lack of diversification a substantial amount of my money was locked into bad loans almost immediately after investing in ACs 'black box' accounts. I think that it is appalling that individual investors are overexposed in these accounts: losses in these accounts should be equally shared across all investors not levied against individuals who had no choice within which loans AC invests their money. I had no choice in the selection of these loans, was fed a lie that investments were diversified and protected by the reassurance of a 'provision fund' which in my experience AC do not use, preferring to lock in lenders funds indefinitely without interest paid. AC are apparently quick to suspend loans but are not very good at managing those suspensions or providing updates to lenders. For months I have been fed a series of updates, usually along the lines of 'meeting with the borrower was cancelled or we met the borrower and nothings changed, we'll provide further update next month'. Asking questions of AC just gets a referral to the latest non-update. I have to question AC's due diligence in setting up loans which within a matter of weeks they suspended indefinitely. I have pulled out everything I can from AC and certainly would never recommend them. hi, thanks, what are the 'black box' accounts? It sounds from others' posts that going into the lower interest rate, already diversified accounts first and waiting for diversification in Feb could be OK. Would you think that if you approached them anew? In some respects the correspondence sounds a bit like problems on another platform but I've decided to ride through that issue and comms have improved there, a bit.... Not to say that the outcomes would be different though. Strictly speaking the black box accounts were the QAA/30DAA because investment was automated and you couldnt see which loans you held. As you can now see your holdings they arent actually 'black box' anymore. However, all the automated investment accounts QAA, 30DAA, GBBA, QEA, PSIA have an element of blackness to them because you dont control what you invest in.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
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Post by ilmoro on Dec 30, 2017 11:50:13 GMT
thanks. are you able to say how their DD compares with eg L or FS? Is the level of loan opportunity akin to that on FS? They get hold of quite a few at the moment. Does the SM enable sale at premium or discount (like C2F) or without like L? Thanks. DD is much better than with L and FS. AC has a very strong underwriting team. The amount of loans is similar to FS. I'm in more loans on AC than on FS. Many loans on FS are different tranches of the same loan, but presented as different loans, which makes it look like more loans. There is an option to to buy/sell at premium or discount, but I can't tell you how it works. I always trade at par on AC. Somebody else might be able to tell you more about premium/discount. No premiums only discounts. Quite simple, just set the amount of discount you want to sell at (max 5% IIRC), any buy requests will automatically buy at the lowest discount avaliable. Buyers can set a discount level above which they dont what to buy but I dont many bother.
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zlb
Member of DD Central
Posts: 1,422
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Post by zlb on Dec 30, 2017 18:26:25 GMT
hi, thanks, what are the 'black box' accounts? It sounds from others' posts that going into the lower interest rate, already diversified accounts first and waiting for diversification in Feb could be OK. Would you think that if you approached them anew? In some respects the correspondence sounds a bit like problems on another platform but I've decided to ride through that issue and comms have improved there, a bit.... Not to say that the outcomes would be different though. Strictly speaking the black box accounts were the QAA/30DAA because investment was automated and you couldnt see which loans you held. As you can now see your holdings they arent actually 'black box' anymore. However, all the automated investment accounts QAA, 30DAA, GBBA, QEA, PSIA have an element of blackness to them because you dont control what you invest in. right. Thanks, so someone could still lose out like previously stated. I've created an account. Can't believe they don't have a mobile web interface though. Hope that improves.
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Post by df on Dec 30, 2017 19:30:42 GMT
Strictly speaking the black box accounts were the QAA/30DAA because investment was automated and you couldnt see which loans you held. As you can now see your holdings they arent actually 'black box' anymore. However, all the automated investment accounts QAA, 30DAA, GBBA, QEA, PSIA have an element of blackness to them because you dont control what you invest in. right. Thanks, so someone could still lose out like previously stated. I've created an account. Can't believe they don't have a mobile web interface though. Hope that improves. Congratulations  I hope it will work for you. Yes, it is tricky to operate it on the phone.
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trouble
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Post by trouble on Dec 31, 2017 1:48:30 GMT
right. Thanks, so someone could still lose out like previously stated. I've created an account. Can't believe they don't have a mobile web interface though. Hope that improves. Congratulations I hope it will work for you. Yes, it is tricky to operate it on the phone. Ipad works fine. phone is a mare
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I hope it will work for you. Yes, it is tricky to operate it on the phone.