How long does FS wait on overdue loans before taking action

Ok, sorry, I'm going to have to have a second moan of the day fundingsecure . It's only because I love you.

As per your own statistics at: www.fundingsecure.com/invest-with-us/loan-statistics

Your overdue loans have increased by £3.9m for each of the last 2 months. For the loans originated in July 2017, a full half of them by value are now overdue. With this trend already appearing to be continuing into March so far, it seems quite possible we'll be standing at £24m of loans overdue by the end of the month - double the level of of only a short time ago in December 2017.

Unless you have a helluva lot of redemptions to bring out of your hat in the next few days, I think we really need some explanation of this.

I'm not fundamentally opposed to your 6-month model, but it only kind of works if you do actually generally renew loans when the borrowers inevitably need further time, and reset the LTV to what is stated in the loan description. Otherwise, our security is being continually diluted by the accruing interest, and our risk of losing out significantly increased.

I'm not going to pontificate on the exact solution, but this is not working as it currently stands. I would really appreciate some acknowledgement of this problem,  and avoidance of any patronising Lendy-esque spin in explaining how this is planned to be resolved.

Edit: As I've been too much of a negative nelly recently, as a positive suggestion - perhaps a move away from the default 6 month loan term? Given that 50% of your loans are going overdue recently, it would seem sensible to set more appropriate timeframes based upon the size and scale of the project.

The first full 4 pages of my loans are all overdue, only 2 loans are officially marked as Unredeemed. Most of these overdue loans have no updates. I do quite like the 6 months term concept, as I like it when the loans is put back on the platform for renewal after 6 months, giving investors the option to renew or exit. When that’s working well it’s a really nice feature. Unfortunately it’s not enforced at all. 

I can understand why someone might think longer loans would help, but consider what happens to the LTV of a loan during the course of a 12-month loan.  Add in a bit more time to get a receivership in place, the reports written, and an exit strategy agreed, and by the time the security actually is sold the LTV will have risen to the point where a full recovery would be virtually impossible.

I must admit that I think FS aren't able to manage the overdue loans that they have.

Whilst they manage loans that repay on (or about) the time they are due they do appear incapable of managing loans that go significantly over the 6 months original loan (ie by 3 - 12 months)

When this site had pawn loans I did recommend it as an investment site but the site has changed.  Now it's a site which offers predominantly property loans.  I have to question the valuations of property loans which seem overoptimistic to say the least and, when the repayment is not made, they seem unable to manage the loans that will or have defaulted. Even worse is when they ignore the information given by concerned investors (see the Whitehaven loan).

I am concerned that FS seem to like to provide investors with as little information as possible about what is happening to their money and that I really don't like and it increases my distrust of FS.

My investments in this site are now sporadic to say the least.  I only invest in loans where I have spent considerable time doing DD because  I really don't trust the information FS provide.

I think it could be. I’m certainly in p2p way over my head. Before I invested a penny if I could have seen that my future position would be where I am today then I’d never have invested that first penny. All the p2p platforms I use are in a mess. COL is in receivership, MT has had defaults, LY is sat on 25 defaulted loans and many more suspended, FS is in denial about lots of defaults and overdue loans. All platforms keep enthusiastically launching new loans while perpetually kicking the can down the road on all the loans that are basically unrecoverable. Frankly it would have been better for me to stick my money in the 5 year Ratesetter account at say 6% for much less risk, less effort and in the Long run probably a much better return.

I have never been so underwhelmed by a newsletter as I have by the one received this morning. No mention of Collateral, no mention of regulation, no mention of SM or resolving overdue loans - nothing.

In fact, aside from the repeated information, there's pretty much less content than the post I'm currently writing, just a few regurgitated statistics with no interpretation..

Did they miss the main section out?