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Post by bulyou on Oct 7, 2022 22:41:19 GMT
If funding circle had folded, would any company who took them over be obliged to collect any remaining defaults? would they have much incentive to? i know it doesn't really matter anymore in regards to fc, but from my experience with them, i want to have a more informed picture of some of the possible eventualities for the future if i find myself in a similar position
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p2pfan
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Post by p2pfan on Oct 8, 2022 0:14:20 GMT
Had Funding Circle folded, Administrators would have taken over and, yes, one of their responsibilities would have been to continue to manage the loans and try to collect all remaining funds for the benefit of FC's lenders.
However, as we've witnessed with many other P2P companies folding, the Administrators would charge £500+ an hour in fees plus all manner of expenses and do everything possible to craftily drag out the matter as long as possible.
They would bill for thousands and thousands of hours and do everything in their power to make sure the process would take years and years and years. They would state FC's systems and loans were atrociously run and extraordinarily difficult to get to the bottom of, the process of managing everything was terribly complicated and therefore required expensive specialist handling to deal with.
Eventually, after say four or five years, when the Administrators and the buddies they went to the same public schools and universities with (lawyers, accountants etc.) have stolen charged many millions of pounds for themselves, there would have been very little left in the pot for lenders. You may perhaps have eventually received 10p or 20p in the £1 of what you were owed.
Look on these forums or Google the Administrations of P2P companies to see how they pan out.
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Post by bulyou on Oct 8, 2022 22:24:10 GMT
hey, thanks for the informative post, that makes for depressing reading.... It can be quite hard to sense when a company is in trouble if they disguise things well, or they are able to block you anyway from withdrawing when things are about to go pear shaped, so its hard to see how you could prevent something like that in the future.
and that sounds like an awful experience for those who had investments with firms who folded, i had no idea, i thought things were bad with FC!
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Post by HMS Ardent on Oct 9, 2022 7:36:32 GMT
"It can be quite hard to sense when a company is in trouble"......not necessarily! The FCA gave the likes of Lendy and Wellesley full approval even knowing they were in trouble!
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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 Nov 1, 2022 17:02:24 GMT
hey, thanks for the informative post, that makes for depressing reading.... It can be quite hard to sense when a company is in trouble if they disguise things well, or they are able to block you anyway from withdrawing when things are about to go pear shaped, so its hard to see how you could prevent something like that in the future.
and that sounds like an awful experience for those who had investments with firms who folded, i had no idea, i thought things were bad with FC!
Even more depressing can be administrations of companies with physical assets. The Administrators will appoint Auctioneers, A friend of mine works for a firm of auctioneers that specialise in this sort of thing, the administrators expect a percentage of the commission ( 10-15% is the norm ) The auctioneer charges for publicity, cataloging the articles etc, which comes from the takings, they also charge up to 20% sellers commission, and 15% buyers, Now I buy at these auctions, and I know that if an item is worth £100 I need to bid well under that. Because if I bid let's say £70 then VAT goes on the top £14, Commission £10.50, VAT on the Commission £2.10 that's £96.60. Because I need to make a profit I'd only bid that high on something with a guaranteed instant sale So I'm buying stuff at under 50% value then the Auctioneer takes a sales commission so probably another 10% off. And yes stuff can sell for silly prices, just 2 weeks ago I got a box with a scanner and keyboard in it ( according to the auction description ), for £1 plus the add ons call it £1.50. The box contained 2 bar code scanners worth at least £50 each second hand, a very fancy stock taking scanner with Wifi etc built I I will get £100 plus for, a credit card terminal with built in printer etc. I don't get this sort of bargain very often, but when I do it's well worth it. And yes I do sometimes feel sorry for the creditors who get pennies in the pound back.
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Post by mostlywrong on Nov 2, 2022 11:13:16 GMT
I have dipped in and out of that market over the years.
It can be rewarding but, as you say, you have to keep a beady eye on your outlay. It is too easy to think "just one more bid and I will have that...".
I note that I dropped out in 2019 as I was turning up at auctions and being comprehensively outbid, time and time again.
At the time, I thought it was because there was too much money sloshing around the system and ebay et al made selling the goods a lot easier.
And then along came Covid!
I have thought of having another go but, looking at some of the commissions now charged by auction houses, they appear to be having a laugh!
MW
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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 Nov 2, 2022 14:09:59 GMT
Recently the contents of an "outdoor store" came up
The Auctioneers marked the RRP on the new items. I seriously don't know where they got the figures from but I could certainly buy below them. However they had dozens of rather nice tents, RRP £599 and up, you had idiots knowing that the the VAT, Commission etc was 38% bidding at £550 plus for the cheapest ones.
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benaj
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Post by benaj on Nov 3, 2022 13:25:11 GMT
If FC allows retail investors to carry on, some investors may see better returns from loans originated in 2020. 2017&2018 are definitely the bad apples.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Nov 3, 2022 15:00:21 GMT
If FC allows retail investors to carry on, some investors may see better returns from loans originated in 2020. 2017&2018 are definitely the bad apples. I started winding down in September '17 but bought a few loans on the secondary market at the end to replace loans I felt I shouldn't have sold off. Regretted that initially as bad debts went a bit mad during 2019 but have since 'recovered' some of those losses.
Less than a fiver remains lent out now but so far I've made £5.5k on a £12k investment overall so can't complain 
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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 Nov 4, 2022 22:51:06 GMT
I have thought of having another go but, looking at some of the commissions now charged by auction houses, they appear to be having a laugh!
MW
Tell me even the smallish Local Auction house has increased the buyers commission from 10-15% this year.
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