pip
Posts: 542 
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Post by pip on Oct 24, 2019 8:43:41 GMT
Totally unscientific poll on how much FS investors will recover. Poll open for a day.
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Post by spareapennyor2 on Oct 24, 2019 9:01:40 GMT
breakeven @ 75.8%
kiss that goodbye
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n
Member of DD Central
Yet another Nick
Posts: 882
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Post by n on Oct 24, 2019 9:17:46 GMT
I put 'not a penny' but this is actually only my expectations on my own loans, the youngest of which is 821 days 'active'. I think any scraps remaining to be recovered will go in admin fees.
But to be fair, the question relates to all outstanding loans. I am sure some of the younger ones will achieve something after fees.
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benaj
Member of DD Central
N/A
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Post by benaj on Oct 24, 2019 9:41:22 GMT
See things from another perspective, these 8%+ platforms doesn’t charge a service fee before “administration”
FC charges service fee on interest collection and yet made a profit.
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Post by brightspark on Oct 24, 2019 9:57:14 GMT
I put 'not a penny' but this is actually only my expectations on my own loans, the youngest of which is 821 days 'active'. I think any scraps remaining to be recovered will go in admin fees.
But to be fair, the question relates to all outstanding loans. I am sure some of the younger ones will achieve something after fees.
My sentiments too. I have been stuck in 5 non-performing loans 2 years plus fortunately for a relatively insignificant sum. Other lenders will do better but I suspect virtually all will emerge not completely unscathed. I hope the demise of FS does not have a domino effect on other platforms due to a loss of confidence in the sector. Other platforms must do much more by due diligence to reject initially, financially weak borrowers and to come down harder and earlier on underperforming loans. Like Lendy, FS was killed by its borrowers and not by disloyalty from a very long-suffering cadre of lenders.
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stokeloans
Member of DD Central
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Post by stokeloans on Oct 24, 2019 11:14:51 GMT
Given all my loans were already in default or written off I don't expect to get a penny back.
Fortunately I've been running down my loan book with FS over the last couple of years so only stand to lose £1,500
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Post by defaultinator5000 on Oct 24, 2019 11:39:02 GMT
That "loyalty" existed merely because it became impossible to liquidate the non-performing loans. Most investors stopped deopsiting/reinvesting a while ago, but at that point it was too late to get out for many.
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Post by mrclondon on Oct 24, 2019 11:53:38 GMT
Most investors stopped deopsiting/reinvesting a while ago, but at that point it was too late to get out for many. Most but not all. Although I have reduced my exposure to FS by over 50% during the last 12 months I was still investing .... and I am now kicking myself because I have cash on account (from recent redemptions) that I was intending to invest in the SM the night before the demise of FS but forgot. (Would have been better to be accruing interest in a well secured loan, than sat as cash )
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Oct 24, 2019 20:22:09 GMT
Most investors stopped deopsiting/reinvesting a while ago, but at that point it was too late to get out for many. Most but not all. Although I have reduced my exposure to FS by over 50% during the last 12 months I was still investing .... and I am now kicking myself because I have cash on account (from recent redemptions) that I was intending to invest in the SM the night before the demise of FS but forgot. (Would have been better to be accruing interest in a well secured loan, than sat as cash ) The cash should be 100% safe, but the loan, however well secured it may appear to be may not be. I would be more happy with the cash. 
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Oct 25, 2019 8:23:24 GMT
Most but not all. Although I have reduced my exposure to FS by over 50% during the last 12 months I was still investing .... and I am now kicking myself because I have cash on account (from recent redemptions) that I was intending to invest in the SM the night before the demise of FS but forgot. (Would have been better to be accruing interest in a well secured loan, than sat as cash ) The cash should be 100% safe, but the loan, however well secured it may appear to be may not be. I would be more happy with the cash. And recovering loans might get saddled with a high proportion of Admin fees.
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Post by charlata on Oct 25, 2019 9:00:58 GMT
Do we know if this is the case? Ordinarily, an administrator wouldn't be able to offset their own losses on one loan against profits on another, but this isn't 'ordinarily'. I can see clear room for creativity in how they allocate their time/expenses to different loans. That said, loans where there is insufficient equity to cover the administrator's fees must be fairly few.
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paulb
Member of DD Central
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Post by paulb on Oct 25, 2019 9:53:40 GMT
As I understand it (and I welcome corrections), there are two levels of recovery now going on - the individual loans, and FS themselves. Essentially, the lenders should benefit from the former (after recovery costs of each loan individually), and the creditors of FS should benefit from the latter (after administrator fees). I think that appointment of the administrators will speed things up for the loan recoveries - I don't think there will be any better outcome, but the results will come sooner. This could be helpful for those foolish enough to have lower-ranking loans, as their capital is being eaten up by interest paid to the higher-ranking loans. I admit I fall into this category as I foolishly assumed that a low LTV on a short-term loan would still be safe - however, I made that mistake almost two years ago (on Land in LSA and C House) and I'm still paying for it. I do appreciate charlata's attempt to inject some humour into the situation though - there are loans where the borrower has just walked, or driven, off with/in the security (and yes, I'm in both Art and Cars loans), or other cases where FS just didn't bother securing the assets. |
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