taca
Posts: 29 
Likes: 8
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Post by taca on Aug 14, 2015 14:01:54 GMT
Is it just me or is everyone else's rate decreasing every time they log on. as the 60 day+ overdue loans build up? Bondora must do something about their appalling recovery rate. I get the impression that many 'borrowers' have been taking the mickey, and getting free money just because they can. Anyway, stopped investing ages ago and just withdrawing every week now. Feel like a bit of a mug TBH.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Aug 14, 2015 17:46:41 GMT
All they seem to be interested in now is filling their rubbish loans with awful default rates. Everything they change works against the interest of their existing investors, so that they can make money from loans which nobody in their right mind would choose to invest in.
Not to be trusted in my opinion. Be very careful how you use this platform.
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Post by gmaxkenny on Aug 14, 2015 18:15:44 GMT
Started investing with Bondora June 2013.It was very good for about a year but no more. Stopped putting in new money in sept.2014 and stopped completely in March this year. I have 644 loans in default and still rising and they have only recovered 12 loans so far. Cant get my money out fast enough from this shower. Borrowers must think Christmas has come early when Bondora hit town.
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james
Posts: 2,205
Likes: 955
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Post by james on Aug 14, 2015 19:39:34 GMT
Is it just me or is everyone else's rate decreasing every time they log on. as the 60 day+ overdue loans build up? Bondora must do something about their appalling recovery rate. I get the impression that many 'borrowers' have been taking the mickey, and getting free money just because they can. Anyway, stopped investing ages ago and just withdrawing every week now. Feel like a bit of a mug TBH. If you have mostly Estonian loans you'll find that the Bondora calculated return peaks around the tenth to fifteenth of the month as most payments come in, then drops until the next time. Other countries with different most popular payment dates cause this to vary. Late payments follow a similar pattern, with the lowest level on say the ninth of the month and highest around the fifteenth, which then gradually drops as the late payments come in, until next time. New 60 day lates also increase most around the peak payment days. Initial experiences of Bondora for foreign investors were good so you're not really a mug. At worst just someone who didn't know about or agree with the reports that things were changing and the relevant changes. Bondora has provided a good demonstration of how, where and why to be cautious with lending, so you don't lose more money than you make. I got in early enough and stuck to Estonian lending so I'm still in positive territory even with the exchange rate moves. Something between 5% and 15% or so up depending on recovery rates at the moment. Later joiners, particularly in the last year using their lending profiles, would not have such a good result, by far.
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james
Posts: 2,205
Likes: 955
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Post by james on Aug 14, 2015 19:43:22 GMT
Started investing with Bondora June 2013.It was very good for about a year but no more. Stopped putting in new money in sept.2014 and stopped completely in March this year. I have 644 loans in default and still rising and they have only recovered 12 loans so far. Cant get my money out fast enough from this shower. Borrowers must think Christmas has come early when Bondora hit town. It does appear that most Slovac loans were not legitimate, or Bondora tapped into a vast market of those unable to repay. Might even be 100% defaulted by now, last I saw was something like 85+%. Estonian recovery through the courts and bailiffs works and the courts take only a couple of months. Whether the borrower has money or property or income to be seized varies but it happens, routinely. I've had five defaulted Estonian borrowers completely repay all owed capital and usually all owed interest and penalties. 68 still working their way through the system in various states, though some are quite old now. Spanish courts seem to have at least a two year time lag before anything happens. Don't know about Finland. One of my concerns about Bondora is the cost of recovery, borne initially by Bondora. I worry that they may have switched to less robust collection approaches to save their cash flow.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Aug 15, 2015 8:55:43 GMT
Yes, for the benefit of others reading this topic the changes are detailed here: www.bondora.com/blog/legal-structure-what-are-we-changing/The part which appears to change the financial agreement between Bondora and the lenders says I hope they are not planning to apply these changes to existing loans which default in future, which would be quite wrong. Bondora seems to think it is acceptable to constantly make changes to the detriment of their investors. |
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