keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Feb 19, 2020 20:13:04 GMT
I've seen this a few times on my loans
"On a RAG (Red, Amber, Green) rating system, we would give this loan a Red status, as the prospect of recovery is uncertain at this point, however, we are hopeful that this rating will improve once we have a better understanding of what the guarantors can afford to repay."
has anyone ever seen other than a red status, or one updated
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Post by capricorn on Feb 20, 2020 0:57:38 GMT
As far as I can see the RAG system has fallen into disuse and is now redundant. However it is still referred to in the standard comment when loans are defaulted which has never been updated. When the system was introduced some years ago you did see loans where the RAG rating was changed but my guess is that FC gave up on it because recoveries are so unpredictable. I've got several loans that retained a red status right up to the point of a full recovery being made! Green seemed to mean something originally, as most of the greens had good recoveries and secured property loans were usually amber because of the security held and, apart from a couple of notable (infamous!) exceptions, fairly good recoveries were made on these (although some are still ongoing and the final reckoning may end up being not so good). FWIT Green = >90% recovery expected over 5 years, Amber = >30%, Red = <30%. But my advice would be to ignore it, it's meaningless now.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Feb 20, 2020 9:47:20 GMT
RAG still seems to be applied to some defaults and not others, perhaps because some employee at FC towers hasn't cut and pasted the new words into their cut and paste document to use on defaults.
not that I'm getting more sceptical about these people
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ceejay
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Post by ceejay on Feb 20, 2020 10:10:49 GMT
My "portfolio" here is now exclusively defaulted loans. There are some Ambers and Greens among them, although I've never seen a status change, even when the circumstances clearly have. To be fair, all of the Ambers and Greens have had some level of recovery, which is more than you can say for most of my Reds.
Although, to underline the essential randomness of it all, the one full recovery I've had was a Red.
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