technik
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Post by technik on Oct 12, 2018 16:43:36 GMT
Thanks Tecknic. I think the problem arises from the loose usage of terminology by FS and other P2P platforms. The dictionary definition of the word term is "a fixed or limited period" and defaulted is defined as "fail to fulfil an obligation, especially to repay a loan". This being so, should not a loan be designated as having defaulted if a borrower has failed to repay both interest and capital by the end of the original loan term? If this suggestion was adopted FS's loan book records would show an awful lot of defaulted loans and make potential investors more aware of the high risks associated with the enticing offers of very high interest rates.
I am not suggesting that receivers should be called in immediately unless FS are convinced that there is no other viable option. If FS decide that the best course of action is to allow the borrower an extended term then a new loan, under a new number, is arranged for an amount sufficient to enable the borrower to complete the project and also sufficient to enable those investors who have opted out to have their capital and interest repaid once the loan is fully funded. Loans that FS have been put into receivership should be marked "defaulted - put into receivership" and loans that have been offered an extended term should be marked " defaulted - extended see loan reference ******".
Do you think this would be taking transparency too far? Not at all  But take a look around the forum and you will soon see you are adding your wishes to the rather large wishlist of things people have asked for/wanted/suggested over the course of the last few years. Think it would be worth you dipping into a few threads here to get a sense as your sentiment is echoed elsewhere in various forms. There are even discussions about how a non-performing loan is defined - after 6 month term, 30 days after that, 90, 180...? Mixture of people here with many different experiences and backgrounds, doing their best to voice opinions to hold platforms to account when they don't seem to be working well. Makes me wonder what kind of platform could be created if platform managers either listened to the constructive criticism or if people from here could even set up their own haha!
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arby
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Post by arby on Oct 13, 2018 13:08:22 GMT
Thanks Tecknic. I think the problem arises from the loose usage of terminology by FS and other P2P platforms. The dictionary definition of the word term is "a fixed or limited period" and defaulted is defined as "fail to fulfil an obligation, especially to repay a loan". This being so, should not a loan be designated as having defaulted if a borrower has failed to repay both interest and capital by the end of the original loan term? If this suggestion was adopted FS's loan book records would show an awful lot of defaulted loans and make potential investors more aware of the high risks associated with the enticing offers of very high interest rates.
I am not suggesting that receivers should be called in immediately unless FS are convinced that there is no other viable option. If FS decide that the best course of action is to allow the borrower an extended term then a new loan, under a new number, is arranged for an amount sufficient to enable the borrower to complete the project and also sufficient to enable those investors who have opted out to have their capital and interest repaid once the loan is fully funded. Loans that FS have been put into receivership should be marked "defaulted - put into receivership" and loans that have been offered an extended term should be marked " defaulted - extended see loan reference ******".
Do you think this would be taking transparency too far? That does happen in the cases where interest is paid. When interest cannot be paid and there is limited chance of this ever occurring, how can FS justify advertising a loan to new investors? Who would actually invest in the loan anyway? At renewal, you are not being paid back by FS or the borrower, you are being paid back by new investors. So without new investors there is no option but to continue with the current investors and work through a slow recovery process. Edit: in some cases FS does state that the renewal amount has been increased to cover prior interest. At least they are open about this and we can assess what we want of the information. Typically this is where the LTV is still acceptable and the overall project plan still seems viable.
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adrian77
Member of DD Central
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Post by adrian77 on Oct 13, 2018 19:11:48 GMT
just added another member to my suspected sleeper list...
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technik
Member of DD Central
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Post by technik on Oct 13, 2018 20:53:34 GMT
just added another member to my suspected sleeper list... Is that someone that represents a platform, in this case FS, but doesn't declare it, or something else? Seen the word a few times and only got a vague gist.
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arby
Member of DD Central
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Post by arby on Oct 14, 2018 6:42:33 GMT
just added another member to my suspected sleeper list... Is that someone that represents a platform, in this case FS, but doesn't declare it, or something else? Seen the word a few times and only got a vague gist. I searched for it as the reference was too subtle for me too. From what I saw, every use of it on the forum was by Adrian Still unclear on what it meant though...
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mjc
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Post by mjc on Oct 14, 2018 10:23:41 GMT
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arby
Member of DD Central
Posts: 910
Likes: 959
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Post by arby on Oct 14, 2018 11:18:00 GMT
That works for a sleeper car, doesn't really seem applicable here....
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But take a look around the forum and you will soon see you are adding your wishes to the rather large wishlist of things people have asked for/wanted/suggested over the course of the last few years. Think it would be worth you dipping into a few threads here to get a sense as your sentiment is echoed elsewhere in various forms.