investibod
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Post by investibod on Mar 7, 2016 20:27:13 GMT
I am going to take a good luck when the details appear. Depending on what I see i will either take a very small bite, or more likely, avoid touching it with anybody's barge pole. You'll need good luck if you invest in this loan! Freudian spelling mistake. Fixed it now thanks.
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Mar 7, 2016 23:26:39 GMT
Perhaps FS are just assessing the number of real "mug punters" they have on their books before they launch a similar one for a couple of million.
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ben
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Post by ben on Mar 8, 2016 0:36:17 GMT
you would like to think with how long it took the others to fill lately it would not go quick but I wonder with the offer of 15% if some just get it without knowing what they are getting
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Steerpike
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Post by Steerpike on Mar 8, 2016 8:55:02 GMT
Apparently it is a leading tennis star and she will be promoting a major sports brand.
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Post by polonius on Mar 8, 2016 9:51:34 GMT
Why would a HNW individual need / want to borrow £125k @ 15%. I'm sure they could get better deals elsewhere, if they need the money so badly?
I think the rate to borrowers is more than 15%.
The reason a high net worth celebrity would have to come to FS is because
(1) all their assets (the Rolls, the mansion) are already mortgaged to the hilt and
(2) their credit history is such that no one else would touch them. Bankruptcy is not uncommon in the entertainment world.
Note that unlike other unsecured personal loan lenders, FS carries out no credit checks. Also according to their FAQ their sole means of recovery of a defaulted loan is to auction any securities. We know from previous defaults that they do not pursue the borrower through the courts. The lender takes the hit.
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Post by Deleted on Mar 8, 2016 12:08:59 GMT
You have to have a massive pinch of salt to consider the following positively 1) high net worth individual 2) needs to borrow large sum 3) has an income stream contract, that will have get out clauses ('cause they do) 4) the asset that is offered up is, not any of the high net value assets, but the risky asset you know that moment when you bite into an apple and find the mouldy bit in the middle I just wish it didn't remind me so much of the hp income stream on a bunch of high mileage cars  You see it isn't the 15% that I might get that worries me, it is the 100% that I might lose.  Note; that you cannot be a High NET worth individual if your assets are mortgaged to the hilt. |
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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 Mar 8, 2016 12:49:01 GMT
My virus protection is reporting that the email message was corrupted and originally read: "Dear Ambassador. At 11am you will be offered the chance to be branded." This was sent by www.whenatattoowon'tdo.com ? We apologize that the firewall didn't work properly. |
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oldgrumpy
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Post by oldgrumpy on Mar 8, 2016 13:09:42 GMT
Sapristi!!! It's going like hot burnt cakes - nearly 11% gone after two hours!!!  15%? I'm not greedy. I'll leave it to the more needy investors.  |
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grahamg
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Post by grahamg on Mar 8, 2016 13:24:27 GMT
I can't believe that lenders are putting £1000 a go into this at least 7 so far. Hope they have stocked up on shirts for when they lose the one they are wearing.
The borrower has to be in debt and the net worth mortgaged to the hilt already.
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Post by yorkshireman on Mar 8, 2016 14:22:32 GMT
You'll need good luck if you invest in this loan! Freudian spelling mistake. Fixed it now thanks. You're welcome!!
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mikes1531
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Post by mikes1531 on Mar 8, 2016 16:45:33 GMT
Note that unlike other unsecured personal loan lenders, FS carries out no credit checks. Also according to their FAQ their sole means of recovery of a defaulted loan is to auction any securities. We know from previous defaults that they do not pursue the borrower through the courts. The lender takes the hit. This is standard practice in pawnbroking. No credit checks, so they can get the money quickly. I expect that the inability to take the borrower to court is built into the contract, and it's one of the reasons the borrower goes to the pawnbroker. So there's no recourse if the security turns out to be overvalued. That's the risk the broker takes, and that's why the interest rates are as high as they are.
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mikes1531
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Post by mikes1531 on Mar 8, 2016 16:46:59 GMT
polonius , you are of course quite right in that FS do charge borrowers much more than 15%. Their stated APR is 46.5% and I'm not sure if they add fees to that. Any quoted APR ought to include the effect of all fees.
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mikes1531
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Post by mikes1531 on Mar 8, 2016 17:06:10 GMT
4) the asset that is offered up is, not any of the high net value assets, but the risky asset It's worse than that, because the asset isn't even offered as security. If FS were to use their standard pawnbroking contract, they probably couldn't chase the borrower if they didn't repay, so hopefully they're using a different contract. What really boggled me, however, was that FS sent out the announcement of the unsecured loan in a message headed with their logo, which says...I really don't think FS thought this idea and it's presentation through very well. And if this loan doesn't repay FS investors in full, IMHO the resulting complaints will cause significant damage to the platform. I'm afraid this incident has caused a severe dent to my confidence in FS's ability to run their business well.
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Mar 8, 2016 17:56:20 GMT
4) the asset that is offered up is, not any of the high net value assets, but the risky asset It's worse than that, because the asset isn't even offered as security. If FS were to use their standard pawnbroking contract, they probably couldn't chase the borrower if they didn't repay, so hopefully they're using a different contract. What really boggled me, however, was that FS sent out the announcement of the unsecured loan in a message headed with their logo, which says...I really don't think FS thought this idea and it's presentation through very well. And if this loan doesn't repay FS investors in full, IMHO the resulting complaints will cause significant damage to the platform. I'm afraid this incident has caused a severe dent to my confidence in FS's ability to run their business well. If it doesn't repay in full the ramifications could be much worse than just p*ssing off the punters IMO but we shall just have to wait and see.
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SteveT
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Post by SteveT on Mar 8, 2016 20:25:36 GMT
It's crawled to just 16% filled after 9 hours. Could be a short (but hopefully conclusive) pilot ...
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