Liquidity and unsold loan parts

I'm in the same position - I have become seriously disenchanted with Funding Circle, and decided to sell up.  The problem is - I can't.
Most of my portfolio sold at par over about a six-week period, but I still had about £7K that had sat on my for sale list till they timed out twice.  I experimented with relisting them a few times to see if recently listed parts would sell quicker (a suggestion from a forum "in another place"), but that didn't help, so I have been gradually increasing the discount because I want to be out, almost at any cost.  I sold three loans this week at -1.2%, and now, I'm down to £171 out of pocket (apart from the £3K that is tied up in late / unresolved loans).

I tackled FC about the wording on their web site (also noted above by Blender) ...

... and they made a statement that the wording would be revised before last weekend - but I see it is still there.

One of the reasons for my discontent with Funding Circle is the obfuscation of the facts all over their site.  Like political spin, they don't actually lie (or at least, I don't think they do), but they certainly give a very favourable impression of their operation where it is frequently unwarranted - and the above quote is one such.  Perhaps it is true that the average time to sell loan parts at par is under two days, but the way it is worded - "On average it takes 2 days to access your money" does not give the impression that loan parts, advertised at par, can sit on the "for sale" list for 14 days - then another 14 days - then another 14 days!

When I first joined and was all enthusiastic about FC, I moved about 15% of my savings to it, and was of a mind to move all of them, as interest rates everywhere else were so poor, but a number of things bothered me about it, and I decided instead, to move them to a managed, world-wide fund on the stock market (the Purisma fund) which made 24% last year.  I don't expect it to do that every year, and I'm sure it will not be as predictable as income from lending, but I'm betting on it being better than Funding Circle over a period of several years.  Also - somebody else does all the work of managing it, where with FC, the time I have spent on it has yielded less than the minimum wage, after losses due to tax and defaults are taken into account.  I also have deep suspicion about their recovery process when loans go bad.  I have a feeling that it is not in FC's financial interest to spend time and effort chasing debts for which other people (us) have taken all the risk.

There was a loan in the past (No. 759) that went South, and FC paid out because they said that fraud had been involved - but that's the only one they have ever paid on as far as I know, although there have been several others that have defaulted very shortly after taking a large loan, and have certainly had a smell of fraud about them.  I might be tempted to do some detective work, but frankly, I've lost interest.  I'm out - or will be ASAP.

Funding Circle seemed very attractive at first, but the first big dent to my confidence came when they introduced MBR's.  I hadn't really analysed my reasons at the time, but I just felt uneasy about messing with a market.  In fact, now that it has this constriction, I'm not sure it can be called a market any more, as it is no longer regulated by market forces.  Now that I'm trying to sell up, I have a better understanding of that uneasy feeling I had.