CP late loans

Another project is in default, so now 33 in default (60 defaulted, of which 27 have since repaid/settled, 1 of which had a capital loss).

Ace My latest just in case you're (still) interested? Got a bit more back but that was just stuff that was due.

Are you still a believer in these guys? I'm so far gone now I'm wondering if I can take a tax loss on most of this.

Place your bets on what happens to the £100.

Perhaps you are right Ace, and I sincerely hope you are. Looking at this, it's only human to be concerned or disillusioned.

But with another loss practically confirmed, there are certainly more questions about their due diligence and how they handle late or underperforming loans.

This is really the acid test now for them, with things not going smoothly, can they reassure investors and turn things around.

Maybe use some of their fees to cushion the blow to investors as a token of good faith? Aren't the fees they charge high.

I don't think that their fees are particularly high. I do have concerns that their fee structure has swung more towards upfront and penalty fees and less towards the interest margin. The current structure seems to reward loan quantity over quality. 

Take yesterday's loan as an example. The Borrower pays 10.5% and we get 10%. That margin seems too low to me. There used to be a virtually fixed 2% margin. The upfront fee yesterday was 1.5%. So, not much fat if the loan performs. The penalty protection fees for overrunning are an extra 5% margin (of which lenders get 2%) and a 1.5% fee. There's clearly much more work needed when a loan runs over, so not unreasonable, and there sometimes needs to be a stick to get the borrower to pull their finger out, but I'd much rather see more of the fees in the margin to reward the platform for good loans, and perhaps a too of the penalty fees between overrunning and default. 

Hi, new to this thread but not new to CP. Still figuring out the degree to which I share the concerns expressed here. 

In my case, 54% of my CP loanbook value is "non-performing" (i.e. overdue), which doesn't sound great. But it occurs to me that's not abnormal compared to other platforms, when you consider  most platforms simply extend the maturity date when a loan comes due and report it as "performing". This in itself is expected I suppose, given the nature of the asset class. But it does make CP stand out a bit when they continue to report the original overdue maturity date and don't extend it as readily as other reputable platforms do. 

For example in Loanpad's pool of 239 loan parts, I calculate 43% of loanbook value has been extended by more than 90 days from the original published maturity date and up to 1 year. They report them as in "Extended" status, so it's explicit.

Similarly in Kuflink's autoinvest pool of 422 loan parts, 48% of loanbook value has been extended between 30 days and 2 years. The one that was extended 2 years isn't even reported as in "Default" and a majority of extended loans are reported in "Performing" status.

I actually quite like that CP don't extend  maturity dates as readily as other platforms, as it's easier to ascertain at a glance how many of them are overdue. In that regard, you could argue it's more transparent rather than less. 

Certainly there is the trend of a growing number of overdue loans, but I'm not sure we can say with certainty that's peculiar to CP and not a cyclical trend common to all platforms. Perhaps it's for some of the reasons suggested by 4thWay here?

Another loan in default has just repaid in full will penalty interest (P**t 3, S*********k, K****n), so now 35 in default (63 defaulted, of which 28 have since repaid/settled, 1 of which had a capital loss).

I expect the stats page will be updated accordingly overnight.