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Post by Financial Thing on Jun 21, 2015 12:37:18 GMT
I don't know if this exists or not, but it would be really helpful if there was a master thread or simple list which explains who we are lending to with regards to each platform. Are we lending the platform or the direct borrowers? That way at least people here can be informed on the risks they face due to a platform default.
Thoughts?
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Post by uncletone on Jun 21, 2015 17:30:34 GMT
If you explore the sites of each platform, the answers should be there.
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j
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Penguins are very misunderstood!
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Post by j on Jun 21, 2015 22:07:25 GMT
Would be useful to have a summary table comparing the various platforms & their defualt rates in numbers/percentage temrs
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Post by Financial Thing on Jun 22, 2015 21:46:40 GMT
If you explore the sites of each platform, the answers should be there. Very true, but what I'm suggesting would make things easier for the forum community rather than every individual spending time hunting for the same answers.
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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 Jun 22, 2015 23:00:48 GMT
Not even sure the answers are always that clear, but | Platform | Receipent | | Assetz Capital | Borrower | | Funding Circle | Borrower | | Funding Knight | Borrower | | Funding Secure | Borrower | | Moneything | Platform | | Ratesetter | Borrower | | Saving Stream | Platform | | Zopa | Borrower | | Ablrate | Borrower | | Wellesley | Platform? | | Fruitful | Platform? | | Rebuilding Society | Borrower | | Thincats | Borrower | | Bondora | Borrower | | eMoneyUnion | Borrower | | Funding Empire | Borrower | | LendingWorks | Platform? | | Mintos | Borrower |
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Edit: incomplete of course |
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spiral
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Post by spiral on Jun 23, 2015 11:37:35 GMT
Wellesley is either depending on whether you take the P2P route or the bond route.
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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 Jun 23, 2015 12:16:44 GMT
Wellesley is either depending on whether you take the P2P route or the bond route. Thats my problem. There are a number of sites where there is no clear link between lender & borrower. If a platform funds the loan then moves the loan on to lenders who are we lending to. eg MT funds the koans itself then legally assigns a part to lenders - are we lending to the platform or to the borrower directly. Even on SS the position isnt 100% clear.
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shimself
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Post by shimself on Jun 23, 2015 16:01:35 GMT
If you explore the sites of each platform, the answers should be there. could schmould I challenge you to interpret lendinvest, members of the p2pfa, but not in fact p2p in my view. other platforms might also be deceptive
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Post by batchoy on Jun 23, 2015 16:01:46 GMT
Wellesley is either depending on whether you take the P2P route or the bond route. However you lend on Wellesley you are lending to Wellesley. With their mini bonds you are lending to Wellesley directly and they use the money to run the business, when you take the P2P route you are lending to Wellesley but they assign the security they take against the loans they make to the investment you have made. In the P2P Bond ISA you are lending to Wellesley directly by way of a bond but they theoretically ring fence the money so that they can only invest it in P2P rather than in the business.
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Post by Financial Thing on Jun 24, 2015 21:33:08 GMT
Very helpful il moro, thanks for posting the list.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jun 25, 2015 0:54:49 GMT
While we discuss the consequences of a platform default, I've not seen anything to say what safeguards and backup procedures a platform takes to mitigate against the possibility of catastrophic data failure. We all assume that each platform has this covered, but can we be sure ?
I cannot imagine many lenders printout their loan book daily, and would it be legally admissible anyway?
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Post by Financial Thing on Jun 25, 2015 2:09:46 GMT
While we discuss the consequences of a platform default, I've not seen anything to say what safeguards and backup procedures a platform takes to mitigate against the possibility of catastrophic data failure. We all assume that each platform has this covered, but can we be sure ? I cannot imagine many lenders printout their loan book daily, and would it be legally admissible anyway? Great question, one we should ask platform rep's. I would hope data is backed up to the cloud to which a third party has access to the information if needed. Who knows though? It's been my experience that anytime a business fails, the lawyers get most of the receivables and the investors get the scraps so let's hope we don't face a platform default.
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Post by jevans4949 on Jun 25, 2015 11:51:00 GMT
It might also be useful if platorms' software / methodologies were placed in escrow somewhere, so that somebody could take over the engagements of business and sort it out. The platforms where the borrower has the liability are theoretically a better bet against total failure, but imagine trying to sort out thousands of micro-loans.
EDIT: Maybe this is something the FCA could regulate upon.
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