liso
Member of DD Central
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Post by liso on Jun 22, 2020 16:29:36 GMT
This loan launched 2 weeks ago, and CP have told us today that there is a change to the original proposal, to alter the loan structure, and to change the plans for refinance on completion. This is a material change to the original proposal, and implemented without consultation with lenders.
I am a new lender with CP and would appreciate knowing, is this unusual? Have other loans also been changed after launch?
TIA
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Post by Ace on Jun 22, 2020 16:43:36 GMT
I've had 40 loans with them and not encountered that issue. There was one that got cancelled after I invested and before it went live. Can't remember the details, but was only a small opportunity loss for me.
They are quite responsive to talk to. If you're not happy with the changes they might well let you withdraw if you ask. They usually allow 24 hours to cancel pledges.
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liso
Member of DD Central
Posts: 389
Likes: 394
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Post by liso on Jun 23, 2020 11:46:29 GMT
Thanks Ace. That's useful to know.
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Post by Ace on Jun 23, 2020 13:29:23 GMT
Looks like I spoke too soon. 20 hours after my previous post I've received notification that the risk level on one of my loans has increased a bit. Its the one involving a pearl bearing shellfish!
The loan has suffered ongoing delays due to Covid19. It has been granted up to a 12 month extension, with an increased rate to lenders from 8% to 10% from the original end date (Sept 2020). The extra time and rate has obviously caused a modest rise in the LTGDV, hence the increased risk level.
Far from being annoyed or concerned at the delay I'm actually impressed with CP's handling of the situation. A plan for dealing with the likely delay has been made and communicated to lenders well ahead of the original loan end date, and lenders have been compensated with an increased rate. IMO this demonstrates good management and a firm but fair attitude towards the borrower. If anything I feel that its slightly tough on the borrower given the present situation.
Well done so far CP.
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Post by overthehill on Jun 23, 2020 15:52:42 GMT
This is not an advertisement but for anyone who hasn't latched onto Crowdproperty yet, they are/have visibly set the standard for P2P loan and risk management. Many other P2P companies will struggle as a consequence and some will fail hopefully before they do too much damage like Fundingsecure. P2P Investors are getting wiser to the red flags.
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Post by nooneere on Jun 23, 2020 16:43:10 GMT
This is not an advertisement but for anyone who hasn't latched onto Crowdproperty yet, they are/have visibly set the standard for P2P loan and risk management. Many other P2P companies will struggle as a consequence and some will fail hopefully before they do too much damage like Fundingsecure. P2P Investors are getting wiser to the red flags.
I am glad to hear someone else say this, because this forum should be pointing out any positives in the crisis that is enveloping so much of the P2P industry. I have been investing for 38 years now (meaning the stockmarket primarily), and in that time I can't think of a more compelling investment proposition than 8% per annum year on year, 100% returned. If CP can continue to survive this period, one will have to say they are an absolute goldmine. (Yes I have read the subject of this thread.) For the record, I don't actually have any money with them (in any capacity), because at present I don't have spare capital I want to tie up even for 12 months.
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Post by gravitykillz on Jun 23, 2020 18:24:30 GMT
Yeah I'm in oyster as well. I have around 3 loans that have been extended in this manner.
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liso
Member of DD Central
Posts: 389
Likes: 394
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Post by liso on Jun 24, 2020 10:32:49 GMT
As a follow up on my original post at the top of this thread....
I received a PM from CP with a clear credible explanation for the changes, and an offer to withdraw my pledge if I wished to do so. Very impressive. I have not withdrawn my pledge, and look forward to investing more with the platform in the future.
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