alison
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Post by alison on Jan 15, 2014 18:03:22 GMT
Email suggests I might have my first duffer on Funding Knight - payment overdue since before Xmas and no contact possible.
S**a UK
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jhma
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Post by jhma on Jan 15, 2014 18:16:44 GMT
Alison
You beat me to the post!
The New Year has brought its expected share of problems across a number of platforms
Could this one be the first distressed loan on FK at all. Period?
No doubt I'll be corrected if there have been others.
Will be interesting to see how FK takes this forward. IMO the email had an impressive blend of tact and assertiveness - but of course all responses could be worthless in reality.
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Post by batchoy on Jan 15, 2014 18:35:34 GMT
I have the received the same email, a pity there is no flagging, or record of FK's actions on the FK website, so I'll have to remember to keep my emails.
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jimbo
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Post by jimbo on Jan 15, 2014 19:21:52 GMT
I have the received the same email, a pity there is not flagging, or record of FK's actions on the FK website, so I'll have to remember to keep my emails. Batchoy, When viewing the "Loan Details" for the affected borrower, click on the tab entitled "The Loan" and then scroll down. Late payment updates are posted here. I too have been impacted by this, but fortunately not by much. Good luck to all. Jimbo
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spyrogyra
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Post by spyrogyra on Jan 16, 2014 13:03:46 GMT
There's another one which may ran into trouble - Ran.... H.. Ltd. Parts can't be put for sale on the SM.
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alison
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Post by alison on Jan 16, 2014 13:26:45 GMT
There's another one which may ran into trouble - Ran.... H.. Ltd. Parts can't be put for sale on the SM. But payment is not due till tomorrow. (Though the first payment in December was shown as 1 day late.) Do they suspend SM sales when a payment is going through possibly?
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spyrogyra
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Post by spyrogyra on Jan 16, 2014 13:35:07 GMT
Yes, they suspend them but that's not the case.Lenders were unable to sell slices of this loan for days. Payment is due on 17th, we'll see what happens on 18th.
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Post by mrclondon on Jan 16, 2014 13:37:29 GMT
There's another one which may ran into trouble - Ran.... H.. Ltd. Parts can't be put for sale on the SM. But payment is not due till tomorrow. (Though the first payment in December was shown as 1 day late.) Do they suspend SM sales when a payment is going through possibly? I had an email from FK (last week ?) admiting to a bug that was mis-calculating the buyers rate for secondary market parts when the previous payment was received late, and advising that my parts in Free*** S***** that I had for sale had been withdrawn from the secondary market and secondary market sales suspended in that loan for the time being. I suspect Ran.... H.. Ltd is in the same boat.
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spyrogyra
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Post by spyrogyra on Jan 16, 2014 14:08:54 GMT
Could be. Surely they could have e-mailed everyone who's exposed. I don't think the company in question is troubled, they are very local to me and I've heard good things about them, so no panic at all, it's more a question of proper conduct in such situations
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Post by captainconfident on Jan 16, 2014 18:19:58 GMT
I hold some of the troubled loan S*** (UK). This is an interesting moment where us lenders get to know a little more about what FK will be like in the long term.
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alison
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Post by alison on Jan 16, 2014 18:46:26 GMT
I hold some of the troubled loan S*** (UK). This is an interesting moment where us lenders get to know a little more about what FK will be like in the long term. Very true - exciting times!! One thing I have noticed having checked through the repayments on all my loans is that seem to make a late payment charge if there is any delay at all. A lot of payments seem to have been due on a Saturday or Sunday but FK expect those payments to be made on the Friday and add a charge if the payment is not made till the Monday. Harsh but none of mine have done it more than once!!
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Post by mrclondon on Jan 16, 2014 20:12:23 GMT
I had an email from FK (last week ?) admiting to a bug that was mis-calculating the buyers rate for secondary market parts when the previous payment was received late, and advising that my parts in Free*** S***** that I had for sale had been withdrawn from the secondary market and secondary market sales suspended in that loan for the time being. I suspect Ran.... H.. Ltd is in the same boat. Now I'm at home I can quote from the email sent last Wednesday: "I am writing to you in relation to the loan parts which you have offered on the Loan Exchange for Free*** S*****
Possibly due to the recent Christmas period and associated bank holidays this loan payment was made late. Unfortunately, when the payment was received and processed we identified an issue with the way the effective interest rate is displayed on the Loan Exchange. This only affects loans where the most recent borrower payment was received late.
Our IT team are working on this to have the issue resolved as soon as possible. However, in the meantime, I regret to inform you that it has been necessary to withdraw all affected loan parts from the Loan Exchange and temporarily suspend any transactions on the affected loan parts. We would ask you to please bear with us whilst we work on this problem and would reassure you that we will be conducting a review of any transactions that have taken place over the affected period. We will of course keep you updated when we have resolved the issue."
So in the absence of any other nfo, I think there is no reason to suspect Ran.... H.. Ltd is in trouble.
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Post by bengilbert on Jan 18, 2014 17:04:09 GMT
I wasn't in on the deal that seems to have gone wrong, but Funding Knight wrote yesterday in their general investor update email ('the good, the bad and the inevitable' - this was in the 'inevitable' section):
'It is with great sadness I report that this week, we have had to notify Investors of the first potential loan default. Our Chief Executive, Graeme Marshall, wrote in his Christmas email about its eventual inevitability, but that we were enjoying our default free record whilst it lasted!
We have notified all potentially affected Investors of the details and, whilst the payment is only 3 weeks late, we are sufficiently concerned by the lack of communication from the borrower that we have instigated our formal debt recovery process.
Unfortunately, defaults are always a possibility and I would remind you that the best way to minimise the risk to your return is to spread your investments across as many loans as possible. To read more about spreading your investment, please take a look at our page on understanding the risks.'
Credit to them for being so open about it - it bodes well for future transparency. I think openness about track record is going to be an important part of credibility for platforms as years of data start to build up. Availability to lenders of accurate information will be important in creating the right incentives for platforms to keep loan quality / recovery levels high.
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Post by bracknellboy on Jan 18, 2014 22:03:00 GMT
We have notified all potentially affected Investors of the details and, whilst the payment is only 3 weeks late, we are sufficiently concerned by the lack of communication from the borrower that we have instigated our formal debt recovery process. Starting formal debt recovery process after 3 weeks ? What is the world coming to ? That's barely enough time for a single WACTCTB comment on another platform.
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oldgrumpy
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Post by oldgrumpy on Jan 18, 2014 22:37:21 GMT
Very interesting. I have a small holding in this. I have a very small holding in FK generally (mainly because of low numbers of available opportunities in the last six months) and the way FK follow this default up will be watched by a large number of FC investors, methinks.
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