Fancy a laugh

TBH, I only know one p2p platform without suspended loans and has a provision fund, still is not risk free. I also have a few loans suspending in some standard AC accounts as well. The risk of p2p lending is always there. In one of the my accounts of with other platform has 5% default in the tax year 2017/18. May be in 5 years time, a portion of those 5% loans defaulted will be recovered in my case. 

There's a possibility more incentive to promote QAA and 30DAA rather than GBBA / PSA / GEIA. 

After all, all these standard accounts except MLIA are managed by those complex algorithm and I always wonder why there are so many transactions every month.

But as I understand it the PF will pay you once the recovery process completes - if there is a shortfall. At least I think that is how the AC PF works, but.......

My view on how AC Provision Funds work is somewhat different to yours.

My understanding is that all of ACs automated accounts have the same underlying Provision fund(PF) structure, this being one that protects the investor against capital loss after all recoveries via sale of secured assets, exercising PGs, debentues etc have concluded. No AC PF provides any protection against a default event by "taking ownership" of the loan in the way the old Zopa Classic and Access accounts did and also how the RS PF behaves for non-property loans. Therefore any investor involved in a defaulted loan in any AC PF protected account will be required to wait until the recovery process is concluded before the PF potentially pays out for that loan.

The above applies to all AC automated accounts including the QAA and 30 Day accounts, aka "Access Accounts".

Where the Access Accounts differ is that they operate with a cash reserve or liquidity buffer to provide the expected speed of access these account are designed to deliver ( normal market coditions caveat applies). Any investor in the Access Accounts will have an equal share of all loans held by these accounts, including any defaulted loans. When you sell out you effectively take money from the buffer and give an pro-rata share of every loan you hold to all the other investors based on the value of their investment, again including any defaulted loans. But importantly you can only do this because of the cash buffer not because of the provision fund.

Bottom line is this: if the cash buffer was exhausted and even if the PF is fully funded you would not be able to exit any loans, defaulted or not, unless someone else was investing new money into the access accounts to effectively buy up your loan holdings.

So it is the liquidity buffer that gives the impression of being protected against these defaulted loans by the PF, in reality the PF is not involved at all.

Hope this helps.

OK, sorry that was not helpful, how about this.

The PF rules as I understand them, as based on info provided by AC.

   ALL PFs are the same, the difference in behaviour of the access accounts is down to the liquidity buffer.

   The PF will pay out for missing interest in a loan that is not in default but interest payments have been missed. Once a loan is in default then interest payments will stop.

   The PF may pay out for capital loss after all asset recovery has been completed/exhausted which is subject to it's legal requirement to be discretionary, i.e. there is no guarantee that it will pay out. This is no different to any other payment as a result of an event (such as death of a person in receipt of a company pension) which in that case may yield a discretionary lump sum payment to the persons estate, but it is not guaranteed otherwise it becomes a life assurance product which an occupational pensions provider is unlikely to be licenced to provide. Likewise if AC or any other P2P platform guarantee to pay out in the event of capital loss then they are providing loss insurance and they would need to be regulated for that. An example of this is where Lending Works provide insurance against certain events such as redundancy, death etc but this is a product purchased fro a 3rd party insurance provider not provided directly by Lending Works. For AC to guarantee the same for loan default they would similarly need to insure every loan and that would be at our cost ultimately via lower rates.

As I see it there are no cloak and mirrors here.