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Post by keelan on Feb 1, 2018 11:40:46 GMT
I initially opened my account in October 2016. Since the middle of December 2017 I have had a number of loans where OC are still awaiting payment. Today the number has just increased yet again and I now have a total of 6. The total interest that I have earned so far will no longer cover the money I have invested in these loans. The Octopus Choice business model is a concern. We the investor get a greatly reduced rate on the money we invest whilst OC cream off the rest. Yes they invest 5% in every loan but what does that really mean. We the investor get say 4% on our investment whilst Octopus Choice get 3-4% on top of that plus the full interest rate from the 5% they have invested. Is it fair. I am giving serious consideration to greatly reducing my investment here and moving it to another platform
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Post by d_saver on Feb 1, 2018 11:46:18 GMT
I have non-performing loans also, but bear in mind that these are very unlikely to be total losses. Ideally you should get all or most of your capital back, even if that takes some time. OC's own investment in the loans is on a first loss basis as far as I know. That applies to their interest too as is my understanding.
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liso
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Post by liso on Feb 1, 2018 12:28:30 GMT
I too have concerns about OC. I have 4 "late" loans and an actual interest rate which is often below the advertised rate. Fluctuations are to be expected but my actual rate always fluctuates below, never above, the advertised rate!
My biggest concern though is the huge concentration of loans geographically around the London area, where property values are in decline. In a forced sale, I'm not sure how much OC's 5% first loss would mitigate.
Has anyone had a successful resolution to any of OC's "late" loans?
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macq
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Post by macq on Feb 1, 2018 12:30:44 GMT
you do wonder with the jump in late paying loans over the last 2 months whether they are connected to the same borrower as things had been stable till then.It would help if OC (but there not the only ones)would give some idea of where each late or defaulted loan is within the recovery process,as while it is good to be up front about late payments without context the info is not much use and can be more worrying then maybe necessary
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macq
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Post by macq on Feb 1, 2018 12:33:33 GMT
I too have concerns about OC. I have 4 "late" loans and an actual interest rate which is often below the advertised rate. Fluctuations are to be expected but my actual rate always fluctuates below, never above, the advertised rate!
My biggest concern though is the huge concentration of loans geographically around the London area, where property values are in decline. In a forced sale, I'm not sure how much OC's 5% first loss would mitigate.
Has anyone had a successful resolution to any of OC's "late" loans? over the last year there where "late" loans that seemed to clear after a few days but these latest ones seem not to be clearing
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Post by d_saver on Feb 1, 2018 12:42:49 GMT
you do wonder with the jump in late paying loans over the last 2 months whether they are connected to the same borrower as things had been stable till then.It would help if OC (but there not the only ones)would give some idea of where each late or defaulted loan is within the recovery process,as while it is good to be up front about late payments without context the info is not much use and can be more worrying then maybe necessary I had the same experience/thought, so I queried it and was told that this was not the case. All the loans were unconnected.
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macq
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Post by macq on Feb 1, 2018 12:55:16 GMT
you do wonder with the jump in late paying loans over the last 2 months whether they are connected to the same borrower as things had been stable till then.It would help if OC (but there not the only ones)would give some idea of where each late or defaulted loan is within the recovery process,as while it is good to be up front about late payments without context the info is not much use and can be more worrying then maybe necessary I had the same experience/thought, so I queried it and was told that this was not the case. All the loans were unconnected. thanks - but that may be more worrying in someways
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pom
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Post by pom on Feb 2, 2018 7:58:15 GMT
Depends really on what the proportion is. I had 7 late, went down to 6 and then up to 9 (and I've also previously had others that have disappeared, so yes they do get resolved). But when I realised I now have over 190 loans in total, well statistically it probably really isn't that big a deal, tho if you've fewer loans I can see why you might be a bit more worried.
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puddleduck
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Post by puddleduck on Feb 2, 2018 8:32:10 GMT
I have one late hanging about for a while.
I sold out the vast majority last year as I couldn't get diversified, whenever I put in more money the number of loans I held barely increased, and I never seemed to buy into the the majority of the 20 or 30 'open' loans the sites reported, as money was constantly going into loans I already had. When I sold out, it was apparent that I was in at over £100+ in many loans.
I have 1 late out of 24 loans, when I sold out a high 4 figure sum last year, I was holding around 45 loans, and sold out as I was concerned if defaults or lates hit, I'd be overly exposed.
I don't see that OC is very viable really, I average 4.16% which seems barely worth the effort, I can get 4.25% in Assetz Capital in the 30 day account, so while I don't plan to pull out my remaining loans, I can see zero incentive to put in any more.
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gnasher
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Post by gnasher on Feb 4, 2018 8:46:08 GMT
I have recently withdrawn all of my available cash from OC because I was feeling uncomfortable with the risk-reward profile.
My stats are as follows, Total interest earned to date £1,036, Money stuck in late loans £3,021
No doubt I will get some of that back, hopefully all. But if I get less than £2k back I will have lost money on OC. If I get less than £2.5k back I will not have done as well as a FSCS protected fixed term deposit.
It is impossible to understand the risk profile on OC so impossible to judge the likelihood of getting my money back. The meagre 4.1% interest does not seem to be enough to compensate for the potential losses.
Also my average loan size was £246, my average in the late, inaccessible loans is £604.
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puddleduck
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Post by puddleduck on Feb 4, 2018 8:56:07 GMT
Also my average loan size was £246, my average in the late, inaccessible loans is £604. I've been moaning about the diversification issues for several months - in a nutshell when OC usually reports 20 or 30 open loans, new funds were only acquiring a fraction of these new open loans and new money was going into loans already held. I think its true to say with better diversification, you wouldn't be averaging £604 in inaccessible loans right now.
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littleoldlady
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Post by littleoldlady on Feb 4, 2018 9:34:27 GMT
I have got 126 performing loans average £137 and 4 non-performing average £190. Interest to date £654 amount in late loans £760. Their loan book is about 180 loans of which 30 are open. I have more money in this platform than any other because the borrower's rate is much lower and I suppose therefore less risky, and the parent company is huge so little risk of platform failure. Safer than AC IMO.
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greatmarko
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Post by greatmarko on Feb 5, 2018 18:45:07 GMT
So I've been with OC for six months this week, and have a small sum invested. I'm currently in 146 loans, total interest to date is £68.26, however there is currently £69.93 in late/stuck/defaulted/who-knows-what loans... so I'm actually currently running at a net LOSS!
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littleoldlady
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Post by littleoldlady on Feb 5, 2018 19:34:46 GMT
So I've been with OC for six months this week, and have a small sum invested. I'm currently in 146 loans, total interest to date is £68.26, however there is currently £69.93 in late/stuck/defaulted/who-knows-what loans... so I'm actually currently running at a net LOSS! Only if there is no recovery at all on the late loans, and as they are property loans this seems a tad pessimistic.
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greatmarko
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Post by greatmarko on Feb 5, 2018 20:56:19 GMT
So I've been with OC for six months this week, and have a small sum invested. I'm currently in 146 loans, total interest to date is £68.26, however there is currently £69.93 in late/stuck/defaulted/who-knows-what loans... so I'm actually currently running at a net LOSS! Only if there is no recovery at all on the late loans, and as they are property loans this seems a tad pessimistic. Absolutely - and that's why I said currently running at a loss. I think the point/concern is, there's absolutely no information provided by OC as to whether/how many of these loans are just simply "late" in paying, or have been formally "defaulted" (and with recovery commencing/ongoing), or have been "defaulted" and completely written off with no chance of recovery, etc.
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