p2pfan
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Post by p2pfan on Feb 26, 2021 14:50:49 GMT
I heard from a colleague this morning that the P2P platform TheHouseCrowd, who I've invested into, have closed down. I firstly frantically downloaded all the details about my loans from my THC account again (I always keep full records of lending) and then have spent the last few hours trying to contact THC through several different means to try to get an insight into their situation, but I can't get hold of a single person there for love nor, literally, money. Their website is still live and doesn't have any notification. Additional evidence that seems to back-up the assertion they've gone bust, or are about to, is that they have deleted their entire social media presence. None of their Facebook, Twitter or LinkedIn profiles work all of a sudden. They have probably done this to stop people chasing up their money or posting negative comments about them. I'm stuck in a no-man's-land situation now because I simply can't get hold of anyone and there is no news about this information online. I'm sure details will come to light over the coming days and weeks, but is there anything I and other THC lenders can do in the meanwhile? Important Update: as of a few seconds ago, their website now has published an administration notice! They have gone into administration.
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dave4
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Post by dave4 on Feb 26, 2021 15:00:00 GMT
Bugger !
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ilmoro
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Post by ilmoro on Feb 26, 2021 15:30:14 GMT
Seems a bit slow - two days to inform investors, nothing on FCA register yet or FCA announcement. Wonder if the Seedrs investors know?
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iRobot
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Post by iRobot on Feb 26, 2021 15:53:21 GMT
From THC's FAQ:
Having now entered into Administration, does this mean the "FCA approved wind down plan" has been torn up and placed in Quantuma's expensively administered recycling bin?
Does a P2P platform have to regularly prove to the FCA that it still has sufficient "provision" for the wind down plan to function? (If no, why not?)
If THC's Directors / Compliance Officer have a regulatory duty to ensure the Wind Down plan is viable and have failed in that duty, what scope does the FCA to discipline these failings? (And will the FCA enforce any disciplinary action available to them?)
These are, of course, largely rhetorical questions. The point being that for all the comforting words around 'be aware of all the risks, but you can trust in us to have taken care of of some them for you; we are a wholesome and viable platform with FCA regulatory approval, a wind down plan and everything!' still the greatest risk to an investors capital is platform failure.
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adrianc
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Post by adrianc on Feb 26, 2021 16:01:15 GMT
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p2pfan
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Post by p2pfan on Feb 26, 2021 16:16:08 GMT
From THC's FAQ: Having now entered into Administration, does this mean the " FCA approved wind down plan" has been torn up and placed in Quantuma's expensively administered recycling bin? Does a P2P platform have to regularly prove to the FCA that it still has sufficient "provision" for the wind down plan to function? (If no, why not?) If THC's Directors / Compliance Officer have a regulatory duty to ensure the Wind Down plan is viable and have failed in that duty, what scope does the FCA to discipline these failings? (And will the FCA enforce any disciplinary action available to them?) These are, of course, largely rhetorical questions. The point being that for all the comforting words around ' be aware of all the risks, but you can trust in us to have taken care of of some them for you; we are a wholesome and viable platform with FCA regulatory approval, a wind down plan and everything!' still the greatest risk to an investors capital is platform failure. You're totally right: as we've witnessed with other P2P platforms closing down, the wind-down plans are not worth the paper they're not written on. The P2P networks' talk of their world-class wind-down plans are just a 'feel-good' marketing ploy to give P2P lenders reassurance that their loans will be adequately handled in the eventually of a company going Pete Tong. The reality is, as I've witnessed today with spending about five hours in vain trying to get hold of any person at or associated with TheHouseCrowd - all the way from their staff, to their accountant, to their lawyers, to their development arm - everybody runs for the hills in these situations and they don't give a damn about the many millions that lenders have lost. They don't have any ethics: when I kept asking THC staff over the last few months that matters didn't seem to be going right, they would constantly rubbish my assertions. The CEO of TheHouseCrowd - an arrogant shmuck at the best of times - has already deleted any association with TheHouseCrowd from his Facebook profile and is instead advertising his dodgy coaching services as a hotshot business guru. Quantuma will now be licking their lips at the many hundreds of thousands of pounds if not £1m+ they will make from this. I've experienced too many Administrations for my liking before and, because of the Administrators filling their pockets at their £750+ an hour rates and other people syphoning off money from the businesses in Administration in a variety of ways, the likelihood of lenders getting anything from Administration processes is miniscule. In the majority of cases I've got none of the money I was owed, or, at best, 4.5p in the £1.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 26, 2021 16:33:05 GMT
From THC's FAQ: Having now entered into Administration, does this mean the " FCA approved wind down plan" has been torn up and placed in Quantuma's expensively administered recycling bin? Does a P2P platform have to regularly prove to the FCA that it still has sufficient "provision" for the wind down plan to function? (If no, why not?) If THC's Directors / Compliance Officer have a regulatory duty to ensure the Wind Down plan is viable and have failed in that duty, what scope does the FCA to discipline these failings? (And will the FCA enforce any disciplinary action available to them?) These are, of course, largely rhetorical questions. The point being that for all the comforting words around ' be aware of all the risks, but you can trust in us to have taken care of of some them for you; we are a wholesome and viable platform with FCA regulatory approval, a wind down plan and everything!' still the greatest risk to an investors capital is platform failure. The CEO of TheHouseCrowd - an arrogant shmuck at the best of times - has already deleted any association with TheHouseCrowd from his Facebook profile and is instead advertising his dodgy coaching services as a hotshot business guru. Which features this delightfully boastful quote Not any more me thinks.
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jo
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Post by jo on Feb 26, 2021 16:43:02 GMT
ilmoro"The conquerors rode in a triumphal chariot, the dazed prisoners walking in chains before him. Sometimes his children robed in white stood with him in the chariot or rode the trace horses. A slave stood behind the conqueror holding a golden crown and whispering in his ear a warning: that all glory is fleeting."
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 26, 2021 16:54:33 GMT
ilmoro "The conquerors rode in a triumphal chariot, the dazed prisoners walking in chains before him. Sometimes his children robed in white stood with him in the chariot or rode the trace horses. A slave stood behind the conqueror holding a golden crown and whispering in his ear a warning: that all glory is fleeting." Drowned out by cries of Hail Frazer, Hail Frazer!
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macq
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Post by macq on Feb 26, 2021 17:26:50 GMT
Remember the pitch on Dragons Den?
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Post by Ace on Feb 26, 2021 17:50:00 GMT
I've never lent on the THC platform, but a quick scan of the website shows that it's quite similar to many that I do lend on. Therefore, I'm very interested to learn about what went wrong here, and what that might imply for other platforms. So, does anyone have any info on what actualy went wrong here?
I realise that most platform administrations are delivering very poor outcomes for lenders, but, perhaps from a nieve position, I don't see why this one should necessarily go the same way. I would have thought the 4 to 5% platform cut should be more than sufficient to manage the rundown of performing loans (CrowdProperty are turning a profit on a 2% margin). Defaulted loans will require to be administered, but that was always the case. Though THC do seem to have a rather high percentage of non- performing loans. Not sure how to put an estimate on the extra administration of the individual defaulted loan administrations. I'm guessing that's where the major vulture feeding will take place.
Obviously full sympathies for THC lenders at this uncertain time.
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michaelc
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Post by michaelc on Feb 26, 2021 18:03:12 GMT
I don't have money invested and as I've lost money in three other p2p platforms (FS, L and COL) I do have a lot of sympathy for investors who do.
Surely if it wasn't crystal clear already, this just adds to the weight of evidence that p2p in general is rotten and no retail investor should be investing on any p2p platform until the FCA gets a grip.
To be clear, I've been pulling out everywhere in p2p for some time now. The nature of the beast is it can take years to do so though.
"We are an FCA authorised platform....." worth about two strips of toilet paper.
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iRobot
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Post by iRobot on Feb 26, 2021 18:06:50 GMT
"We are an FCA authorised platform....." worth about two strips of toilet paper. Only if it's already been used.
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squid
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Post by squid on Feb 26, 2021 18:25:46 GMT
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agent69
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Post by agent69 on Feb 26, 2021 18:59:42 GMT
The CEO of TheHouseCrowd - an arrogant shmuck at the best of times - has already deleted any association with TheHouseCrowd from his Facebook profile and is instead advertising his dodgy coaching services as a hotshot business guru. Isn't that a face you'd just love to punch
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