My summary from a newbie

A further point loosely connected to point 4 above. This involves the suspended BL items and the time it might take to get your money back from one of these.

So far AC have been good at recovering the first defaulting loan, FF. However there are now a growing number of BL's getting into difficult territory and it is currently difficult to predict what the outcome from these will be. I made a personal decision to withdraw my holdings in AC back last autumn but at the time seven were in suspension. One (FF) has been partially recovered but the other six are still in various states of difficulty with no clear sign of resolution. The problem with these six is that the original LTV on average was 70% but now with our punitive rate of interest at 18% building up plus the costs of recovery this is rapidly being eroded. Worse still in a couple of cases and from the information available it looks like the original valuations may have been somewhat on the optimistic side. Further some of the borrowers seem to have been trained by the Awkward Brigade and are unlikely to yield without considerable and possibly expensive pressure.

In a nutshell from the current information available from AC and my own personal experience my guess is that I am going to have to wait a long while to get my money back and the longer it goes on the greater the chance of only a partial recovery of what is owed to me.

To any new entrant into P2P my advice would be to be aware that when things go wrong with a loan it can take a long while to get sorted. Secondly don't be hoodwinked into believing that because a loan is backed by property your money is safe because that is not always true!