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Post by shanghaiscouse on Nov 12, 2019 14:07:52 GMT
I have around 30k of bad loans now stuck in a portfolio with FC. All I can do is watch is resolve slowly over time. What would anyone offer me for this? I guess I can sell you the account name and the password to the account, then you send me the cash? As a starting offer, who will give me 90p on the £?
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rogedavi
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Post by rogedavi on Nov 12, 2019 14:40:24 GMT
this is really what FC should be providing.
liquidity is killing the brand
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Post by Ace on Nov 12, 2019 18:26:26 GMT
If it was legal:
I'd give you 90p in the pound for a portfolio that hadn't had any sales actioned.
However, for a portfolio like yours that's already had its performing loans sold off, I'd be prepared to outbid Deees at 15p in the pound, but no higher.
I don't think either of those offers would be certain to make a profit going forward, but I think it would be likely enough to be worth the risk. I'm pretty sure an FC fan will be along shortly to outbid me on both 😉
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ashtondav
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Post by ashtondav on Nov 12, 2019 18:40:21 GMT
 doesn't FC do what ZOPA does and flog off the bad loans to specialist companies. This enables lenders to quit the platform completely and cleanly. Is it because their recovery teams are so much better than big Z?
Instead we have the constant griping and sniping on this platform.
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benaj
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Post by benaj on Nov 12, 2019 18:47:24 GMT
If it was legal: I'd give you 90p in the pound for a portfolio that hadn't had any sales actioned. However, for a portfolio like yours that's already had its performing loans sold off, I'd be prepared to outbid Deees at 15p in the pound, but no higher. I don't think either of those offers would be certain to make a profit going forward, but I think it would be likely enough to be worth the risk. I'm pretty sure an FC fan will be along shortly to outbid me on both 😉 If someone invested all FC loans via SPV, may be the company can be sold legally.
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Post by Ace on Nov 12, 2019 18:53:37 GMT
If it was legal: I'd give you 90p in the pound for a portfolio that hadn't had any sales actioned. However, for a portfolio like yours that's already had its performing loans sold off, I'd be prepared to outbid Deees at 15p in the pound, but no higher. I don't think either of those offers would be certain to make a profit going forward, but I think it would be likely enough to be worth the risk. I'm pretty sure an FC fan will be along shortly to outbid me on both 😉 If someone invested all FC loans via SPV, may be the company can be sold legally. Steady on benaj, I thought that was my get out clause. Still expecting to get outbid though. If I'm the most bullish about FC then they really are in trouble.
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ashtondav
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Post by ashtondav on Nov 12, 2019 19:07:42 GMT
Still don't understand why they don't sell them on as ZOPA does, enabling a clean exit for lenders. Offering them on a SM at a discount does not achieve this.
It can only be (over?) confidence in their recovery ability.
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Post by davee39 on Nov 12, 2019 19:38:16 GMT
Just a guess, but I doubt there is any kind of market for duff business loans. Individual borrowers have a personal liability and can be hounded by debt collectors. A business can go bankrupt leaving nothing to be recovered. The only recourse is the personal guarantee, and a small no of failed borrowers do make repayments under this.
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Post by shanghaiscouse on Nov 12, 2019 21:34:17 GMT
Just a guess, but I doubt there is any kind of market for duff business loans. Individual borrowers have a personal liability and can be hounded by debt collectors. A business can go bankrupt leaving nothing to be recovered. The only recourse is the personal guarantee, and a small no of failed borrowers do make repayments under this. The portfolios include 3 elements, (i) already determined to be Bad Loans and in recovery, (ii) Loans where there are Late Payments but not yet bad, (iii) Loans marked as "Risk Band Removed" meaning some event has occcurred leading them to think there is a problem, but not yet Bad (i.e. not yet in recovery as some process is ongoing like a liquidation). There is definitely some value, many on this forum say they get 80% ish back but that was probably on the better loan cohorts from earlier days, not the pooer quality 2018/19 cohort.
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richv
Posts: 42
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Post by richv on Nov 12, 2019 21:52:55 GMT
Just a guess, but I doubt there is any kind of market for duff business loans. Individual borrowers have a personal liability and can be hounded by debt collectors. A business can go bankrupt leaving nothing to be recovered. The only recourse is the personal guarantee, and a small no of failed borrowers do make repayments under this. The portfolios include 3 elements, (i) already determined to be Bad Loans and in recovery, (ii) Loans where there are Late Payments but not yet bad, (iii) Loans marked as "Risk Band Removed" meaning some event has occcurred leading them to think there is a problem, but not yet Bad (i.e. not yet in recovery as some process is ongoing like a liquidation). There is definitely some value, many on this forum say they get 80% ish back but that was probably on the better loan cohorts from earlier days, not the pooer quality 2018/19 cohort. I don't know how we could make it work, because of the get payments out one would need to set up a bank account, and that needs to be varied, maybe its possible? but leaving that aside I could be interested, how much is in each of the i) ii) and iii) how old is the oldest lone, and the newest loan, and how much is coming out each month in, Late payments, interest, and recovery? it may be possible to get a screen shot of the account summary and post. But I should say, there is a lot of risk to this so I would not be prepared to go that high, I don't think that the 80% recovery thing is normal, the 2012 loans had just over 50% on average, and it seems to have drooped since then.
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Post by shanghaiscouse on Nov 12, 2019 22:09:17 GMT
I think its easy to change the bank arrangements, you just do that from within the account once you buy it. Before sale, the original owner can just delete their original bank details.
I was thinking to make a summary of my loan book for potential buyers. It is hard to do as the FC data turns out to be garbage. E.g. I have a loan which they had as an A+ rating which is now a bad debt, but they don't change the risk rating (in some cases they remove the risk rating but not in all cases, I have no idea how they decide which to remove from and which to stick to original rating although clearly innappropriate). Many of the comments show they have no idea what is going on, if I search companies house I can find a lot more updated information than FC seem to have.
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richv
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Post by richv on Nov 12, 2019 22:21:14 GMT
I think its easy to change the bank arrangements, you just do that from within the account once you buy it. Before sale, the original owner can just delete their original bank details. I was thinking to make a summary of my loan book for potential buyers. It is hard to do as the FC data turns out to be garbage. E.g. I have a loan which they had as an A+ rating which is now a bad debt, but they don't change the risk rating (in some cases they remove the risk rating but not in all cases, I have no idea how they decide which to remove from and which to stick to original rating although clearly innappropriate). Many of the comments show they have no idea what is going on, if I search companies house I can find a lot more updated information than FC seem to have. As they are all now 'Bad' in some way I'm less conserned if they were ones A+ A or whatever, then how many have defulted and how many are just late, and so on.
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blender
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Post by blender on Nov 12, 2019 22:46:48 GMT
Long ago it was suggested on the forum that FC should create a charitable trust which lenders (or their heirs) could endow with unwanted residual FC accounts. FC would not consider it, though you would think it could generate some good publicity. I guess you could leave your FC account to a cats home in your will.
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Post by Badly Drawn Stickman on Nov 12, 2019 23:00:03 GMT
Long ago it was suggested on the forum that FC should create a charitable trust which lenders (or their heirs) could endow with unwanted residual FC accounts. FC would not consider it, though you would think it could generate some good publicity. I guess you could leave your FC account to a cats home in your will. That is very lazy donating, accounts should be appropriately gifted... Ones with only peanuts left should go to monkey sanctuaries Stubborn payers to donkey sanctuaries Ones that go round and round but never get anywhere to hamster homes OK I'm out if you want anymore you can think of them yourselves
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Post by Ace on Nov 12, 2019 23:01:19 GMT
Long ago it was suggested on the forum that FC should create a charitable trust which lenders (or their heirs) could endow with unwanted residual FC accounts. FC would not consider it, though you would think it could generate some good publicity. I guess you could leave your FC account to a cats home in your will. unding Cats
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doesn't FC do what ZOPA does and flog off the bad loans to specialist companies. This enables lenders to quit the platform completely and cleanly. Is it because their recovery teams are so much better than big Z?
