How can FS be fixed ?

Perhaps FS might Listen to its investors  if we can come up with useful suggestions that could improve the platform.  I hope by starting this we can get some good suggestions.

This should be an adult discussion so lets get all the negative doom merchants out of the way.
Yes we all want our money back on time and all defaulters crucified and our money returned by selling their and their family’s organs on the black market.


Now I will kick things off 
My suggestions 
Lets start on December 1st
All interest rates to investors reduced by 2% interest paid by borrowers remains the same.
That money placed in a interest earning ring fenced contingency account belonging to investors
At start of loan FS request exit strategy.

At 3 months FS request updates on strategy 

At 6 Months if loan not repaid or evidence of imminent repayment provided and no Interest paid to renew 

the loan is defaulted and bonus equivalent to BOE base rate is added.

At 7 months nothing changes. Receivers are appointed or asset ownership transferred to FS this prevents LTV increasing to a point where accrued interest makes default more likely as an asset is transferred when there is at least 28% equity remaining.
Associated fees to be paid from contingency fund so there is no reluctance on FS’s part in pressing ahead with legal action.

FS on acquiring asset pay the investors 100% of capital from contingency fund along with the BOE rate interest for the month
(a tiny amount but in line with bank deposit)

FS manage asset eg. Sell/build out etc. 

FS would seek to recover contingency fund capital plus interest. 

If recovered money gets full capital and interest >5% but <8% the original investors get that interest.
However if more is paid investor interest is capped at 8% any excess paid to contingency fund.
This would give FS the incentive to be perhaps a little more diligent in selecting borrowers.

The advantage is that investors can be assured at least capital return with a little interest.

By only selecting good borrowers loans will fill easily and any borrowers trying to pull a fast one would not be able to drag things out
with investor money.

When the contingency fund reaches 50% of lent capital then loans from that point on that default would see their investors paid in full capital + interest at 7 Month point.

This should make FS to investors seeking a 8-13% return an attractive proposition. It should also make the platform less attractive to those seeking borrow easy money.

Were FS to take 1% less for their part and put into contingency fund until the contingency fund reached 250% of capital lent that would go a long way to show investors that their own profit made from our money is important.

Once the contingency fund reaches 100% of money lent. The contribution would drop and interest rates rise by 1% and in the future as fund continues to rise interest rates would finally reach their current levels. FS would continue contribute 1% too fund so that it maintains a rising total

After fund reaches 200% an annual bonus equal too 50 % sum over 200% Is paid to all investors pro rata for that year for each month you have been investing. The remaining 50% is paid to FS as by then they are the only contributor to the fund.


The increase in the contingency fund is of course dependent on FS getting loans that are unlikely to default with a loss of capital to the fund. Should the fund drop below 180% then interest on new loans would be reduced by 1% again until fund reaches 200%


Your comments and participation is definitely welcomed. Let us all make FS the best it can be.