p2pstephan
Member of DD Central
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Post by p2pstephan on May 30, 2019 13:41:06 GMT
FS overvalued a bling item by circa three fold. I think the investors deserve a full explanation. What went so wrong and what has been put in place to make sure this error is not repeated. But to have such a brief update, shows to me that they do not give a hoot.
FS: We overpriced it by three fold. “Sh*t happens”. As per our T&Cs our mistake is your loss “Suck it up”.
When FS mess up like this and treat it as if it is business as usual then, alas, I have to agree with the prior poster. “Wake up people”. I love the FS platform and made a tidy profit and I am not in these particular bling loans but FS’s attitude sucks, so alas I am going to have to exit stage left.
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rocky1
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Post by rocky1 on May 30, 2019 14:02:32 GMT
looks like massive over valuations on nearly every unredeemed/defaulted property/development loans and god knows the offerings the past few months.latest batch filling very slowly,many lenders have had enough of the BS from this outfit.
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arby
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Post by arby on May 30, 2019 14:45:37 GMT
You think it's a good idea, others (me) could think it's terrible. The provision fund would be generated by taking x% interest as suggested, but in reality all this means is that I get less interest on the loans I'm investing in with the provision fund subsidising a bunch of loans I'd never consider touching. The entire purpose of individual loan selection and due diligence goes out the window. Such a model already exists and I use ratesetter for that; less interest, provision fund, my returns match the overall platform return. FS is a different model where we get to choose the risks we take. If people don't like that there are many other platforms out there that are better suited to them. I fully agree with your sentiments in theory. But where it falls down in practice is when dealing with these cowboys, DD becomes a lottery when their operational integrity is so unprofessional as to be more or less worthless. If that is your belief (and i can understand how you'd get to that viewpoint), then a provision fund doesn't help as you're still just diversifying across the platform; if it's the platform that you have an issue with then this doesn't help.
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alanh
Posts: 556
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Post by alanh on May 30, 2019 14:48:55 GMT
I am completely (well, as much as I can be) out of FS whereas it was once my biggest platform. Watching from a distance it looks like they are making some changes and are at least trying to turn things around and I hope that they do. What they don't seem to realise is that they are not going to get another penny out of me until they begin making some progress on the backlog of defaults that have been accumulated. If that started to happen then I would begin to start dipping a tentative toe back into the water. If that takes months or years then c'est la vie - I can afford to be patient whereas from the looks of it FS can't.
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adrian77
Member of DD Central
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Post by adrian77 on May 30, 2019 18:45:00 GMT
This is ridiculous - I used to work for a major auction house and granted strange results can happen but jewellery has a specific trade value - I worked on a programme that compared expected to actual results and the experts were incredibly accurate at well over 90% within range.
I wonder if the FS valuers are confusing trade and retail prices...
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cwah
Member of DD Central
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Post by cwah on May 30, 2019 19:30:44 GMT
This is ridiculous - I used to work for a major auction house and granted strange results can happen but jewellery has a specific trade value - I worked on a programme that compared expected to actual results and the experts were incredibly accurate at well over 90% within range. I wonder if the FS valuers are confusing trade and retail prices... Maybe a case to sue the valuer then?
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alanh
Posts: 556
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Post by alanh on May 31, 2019 18:41:37 GMT
Further to my post above I note that I have just received FULL REPAYMENT (!!) of Formby plus partial interest repayment (actual return 5.3% pa apparently). Nice one FundingSecure.......thats what I'm talking about.
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sarahcount
Member of DD Central
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Post by sarahcount on May 31, 2019 20:06:18 GMT
Further to my post above I note that I have just received FULL REPAYMENT (!!) of Formby plus partial interest repayment (actual return 5.3% pa apparently). Nice one FundingSecure.......thats what I'm talking about. That's the new build house in Formby that's repaid. Partial interest at 5.3% for the first development and full 12% interest for the initial land loan. Lenders in the 10k third ranking supplementary loan have a whopping loss which is another painful reminder to lenders to avoid them. I was in the loan that repaid at 12% and was very relaxed that it would repay. Not quite so sure about the Formby flats loan though.
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Post by dan1 on May 31, 2019 21:00:23 GMT
Taking the pawn loans in isolation*, how would FS perform as a traditional pawnbroker? Would their fees+interest collected minus capital losses from defaulted sales still leave them with a healthy profit? If not, then the valuations are suspect, for whatever reason. And a further point, if (and it's a big if) the valuations are suspect then this opens FS up to the possibility of being exploited by those wishing to offload their assets for the maximum available £££. Take it even further and there's probably an arb to be exploited if the valuations are on the high side (ok, getting a bit exotic now  ). * excluding the art loans, just those they'd actually taken possession of! |
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,168
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Post by ozboy on May 31, 2019 21:12:46 GMT
Taking the pawn loans in isolation*, how would FS perform as a traditional pawnbroker? Would their fees+interest collected minus capital losses from defaulted sales still leave them with a healthy profit? If not, then the valuations are suspect, for whatever reason. And a further point, if (and it's a big if) the valuations are suspect then this opens FS up to the possibility of being exploited by those wishing to offload their assets for the maximum available £££. Take it even further and there's probably an arb to be exploited if the valuations are on the high side (ok, getting a bit exotic now ). * excluding the art loans, just those they'd actually taken possession of! The possibility?!!!!  I also know who was exploited, and it wasn't FS. 
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Post by beepbeepimajeep on May 31, 2019 21:37:45 GMT
I also know who was exploited, and it wasn't FS. Exactly
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