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Post by Deleted on Feb 14, 2020 19:57:31 GMT
I reversed out of FC about eighteen months ago, but I still have approx. 300+ bad debt loans paying various dribbles of recovery payments. So every now and then I log in to see what small amount I can withdraw. My question is: how long will this go on? Obviously longer than the longest remaining term, so I guess it is anyone's guess? No doubt there will be many thousands of FC customers in the same position.
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Post by takeshi on Feb 14, 2020 22:48:43 GMT
It's a long standing 'feature' of fc and p2p in general.
There's no exit. I've seen the problem raised numerous times, with no meaningful response.
Suggestions of donating small residual amounts to some sort of charity pot have been ignored.
It's of course particularly pertinent to executor accounts.
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Post by capricorn on Feb 15, 2020 0:56:21 GMT
How long will it (recoveries) go on? Well I've got defaulted loans from 8 years ago still making tiny repayments so quite a while is the answer! Some defaulted loans do eventually get closed by FC because there is no prospect of further recoveries or, in a few cases, because a full recovery is made. About 30% of my defaulted loans over an 8 year period are closed. About 40% of my bad debt has been recovered which I think is about what is expected given enough time. FC would have to sell off the debt from defaulted loans to a third party debt collections agency to allow lenders to make a clean exit from the platform and this is not the model they operate. Recoveries contribute to the headline rate they advertise and I suppose they would argue this gives lenders a better return than debt sales. Lenders pay the price through the inability to exit in one go. Even without the problem of defaulted loans the number of late loans in a portfolio means an investor wishing to liquidate their investment will find that when they click on 'Access Funds' the figure available will be quite a bit less than their portfolio total (only about 70% of it in my case due to late paying property loans that FC seem unable to deal with). This also means a lender can't withdraw their investment in one go and an underperforming chunk of the investment stays trapped in the platform for an unpredictable amount of time. New lenders need to be aware of the 'end game' when they decide to invest.
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Post by investor1925 on Feb 15, 2020 10:49:32 GMT
I read a post on Assetz about closing your account, instead of waiting years & years for the pennies to drip feed in. At the time I had an FC account with £29 in it, in 2 loans, both of which were defaulted. They were paying back around 1p each month in recoveries. I asked FC if I could just close the account & walk away. They said I could do this by assigning the rights to my loans to their pet charity, which was duly done & dusted in less than 2 weeks via 1 signed pdf declaration. The main reason I did this was that the amount was small & the repayment timescale would have made me a world record holder if I were still alive when it all ended, close to 300 yrs old ha ha. If you're fed up with it all, you can always take this option. Look at the link below, which is the Assetz thread "close account and accept losses option" p2pindependentforum.com/thread/16503/close-account-accept-losses-option?page=2 |
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,594
Likes: 2,624
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Post by keitha on Feb 15, 2020 17:14:08 GMT
I reversed out of FC about eighteen months ago, but I still have approx. 300+ bad debt loans paying various dribbles of recovery payments. So every now and then I log in to see what small amount I can withdraw. My question is: how long will this go on? Obviously longer than the longest remaining term, so I guess it is anyone's guess? No doubt there will be many thousands of FC customers in the same position. Wowi'd say 1000 loans was a big portfolio so 300 bad debt loans is huge or do you mean £300+ in bad debts
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Post by Deleted on Feb 15, 2020 19:18:36 GMT
I reversed out of FC about eighteen months ago, but I still have approx. 300+ bad debt loans paying various dribbles of recovery payments. So every now and then I log in to see what small amount I can withdraw. My question is: how long will this go on? Obviously longer than the longest remaining term, so I guess it is anyone's guess? No doubt there will be many thousands of FC customers in the same position. Wowi'd say 1000 loans was a big portfolio so 300 bad debt loans is huge or do you mean £300+ in bad debts Sadly yes it is 300+ loans in bad debt, and it was a lot more than that some time ago. Defaults and fees are well over £8k, net earnings well under £5k covering many years and some largish sums... Most of these loans were very small (£10 to £100) and with director guarantees but even with all that diversification, and supposedly inbuilt protection with DG's it all went rather wrong! I guess I should be thankful to be away from FC now and still to be drawing some modest amounts whilst it all winds down.
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Post by gravitykillz on Feb 18, 2020 9:30:42 GMT
Didn't the british business bank used to buy a percentage of fc loans ?
I am curious to know if they made a profit during their trial or how many defaults they eventually had.
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Post by investor1925 on Feb 18, 2020 9:58:20 GMT
Didn't the british business bank used to buy a percentage of fc loans ? I am curious to know if they made a profit during their trial or how many defaults they eventually had. Yes they did invest. Don't know if they made a profit or not. Not only that, but I also spotted a certain County Council investing in FC (better than Icesave I suppose)
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Likes: 2,624
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Post by keitha on Feb 18, 2020 10:15:51 GMT
Didn't the british business bank used to buy a percentage of fc loans ? I am curious to know if they made a profit during their trial or how many defaults they eventually had. Yes they did invest. Don't know if they made a profit or not. Not only that, but I also spotted a certain County Council investing in FC (better than Icesave I suppose) British business bank still investing as far as I know
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dorset
Member of DD Central
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Post by dorset on Feb 20, 2020 18:18:42 GMT
I reversed out of FC about eighteen months ago, but I still have approx. 300+ bad debt loans paying various dribbles of recovery payments. So every now and then I log in to see what small amount I can withdraw. My question is: how long will this go on? Obviously longer than the longest remaining term, so I guess it is anyone's guess? No doubt there will be many thousands of FC customers in the same position. And you will have some of them forever and you will be an "investor" in FC forever. For example my loan 3201 which defaulted in December 2014 is paying back at 1.1% of the contractual amount. Quite a bunch of my 370 defaults are paying back at less than 20% of the contractual amount. Nice if there was a market to create a portfolio of all of these defaults and sell on at say 5P in the £ otherwise I will never ever be clear of FC.
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ceejay
Posts: 975
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Post by ceejay on Feb 21, 2020 16:22:19 GMT
And you will have some of them forever and you will be an "investor" in FC forever. ... Nice if there was a market to create a portfolio of all of these defaults and sell on at say 5P in the £ otherwise I will never ever be clear of FC. My remaining portfolio is delivering around 30p a month in recoveries at the moment! Occasionally a little more, and there are a few loans where hopeful noises are being made. I'll probably give it another year and then take the Charity write-off option, as referred to upthread, just to be shot of the thing.
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Post by shanghaiscouse on Feb 22, 2020 19:52:56 GMT
I reversed out of FC about eighteen months ago, but I still have approx. 300+ bad debt loans paying various dribbles of recovery payments. So every now and then I log in to see what small amount I can withdraw. My question is: how long will this go on? Obviously longer than the longest remaining term, so I guess it is anyone's guess? No doubt there will be many thousands of FC customers in the same position. Wowi'd say 1000 loans was a big portfolio so 300 bad debt loans is huge or do you mean £300+ in bad debts I had a 1,000 loan parts plus portfolio with a similar incidence of bad debt so I'd say that was normal in FC
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Post by Deleted on Feb 23, 2020 9:19:54 GMT
And you will have some of them forever and you will be an "investor" in FC forever. ... Nice if there was a market to create a portfolio of all of these defaults and sell on at say 5P in the £ otherwise I will never ever be clear of FC. My remaining portfolio is delivering around 30p a month in recoveries at the moment! Occasionally a little more, and there are a few loans where hopeful noises are being made. I'll probably give it another year and then take the Charity write-off option, as referred to upthread, just to be shot of the thing. I'm averaging about £25 per month so will hang in for awhile, but the charity thing is a good idea hen it drops significantly
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