E-Alert!

Thanks folks, get the picture now. The fact that FC could, presumably, easily create a more even chance of allowing more investors the chance to land bids into such auctions - but don't - suggests to me that they have no interest whatsoever in the 'ordinary' investor. Sad really.

They've been offered at least a dozen suggested solutions to this problem (going right back to the days of actual auctions, when near  the close fast bots would regularly crash the servers), and I've swapped emails with customer support on the issue for about 3 years now .. the basic problem is that FC don't see it as a problem. 8<. Or at least not one worth changing anything to fix (including releasing that API so everyone could have their very own bit-bot).

Heck they can't even police the rather pathetic 20% limit they currently have written down, which'd hardly be rocket science. Saner limits (like the 3 bids a minute the API was supposed to impose) remain a pipe dream.

Projected returns after defaults would be too low then.

It depends whether you believe default rates will be much lower than the 8% per annum FC expects. Before fixed rates came in minimum bid rates were introduced to protect people from not taking default risk properly into account. At current rates, projected average returns for E loans may be a little higher than other risk bands but with a warning to expect higher volatility of returns. Bot buyers don't intend to own the parts for long enough to face the full default rate if any. If they were sure of buyers they might continue the same frenzy even at lower rates, but no one should want to own E parts long term at meaningfully lower rates if they believe the projected default rates. However, secondary market rates are not much lower than primary market rates. There are nearly 7000 parts available at 17.6% or better. You get time to look at what you're buying and your money isn't idle while the borrower decides whether they want it.

No, there is an obvious and much fairer solution, which is to prevent the small number of deep-pocketed, bot-enabled lenders from hoovering up the bulk of every small to medium-sized E loan in seconds, before anyone else gets a look in. If FC lenders were limited to buying 1% of any loan rather than 20% (the notional limit which is still abused on occasions), or else to 1 bid per minute, or 10 bids maximum, or then the situation would be much improved.

I have been taking away some cash from FC over last few months to diversify a little and just had a lovely email asking why? I also had an option to explain - I included an element of what has been put here as well as some other issues I have. Hopefully they may look at it but not so sure - From this forum it looks like I am not the only one taking cash away but they keep lending more money every month and keep filling the loans so why should they worry

Controversial point to let more people have a chance - Reduce the interest rates on C/D/E loans?  - it makes their lenders happy, makes their lenders affordability issue better and they will still fill up 'E' loans as say 16-17%. As said before though still awaiting to see what the real default rate will be on these in two years time!

I've just got that email too - Who said Fawlty Castellations don't care?