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Post by bonfemme on Oct 2, 2017 11:48:56 GMT
That makes the recovery about the same as the average of my FC unsecured bad debt.
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Post by banffy on Oct 2, 2017 12:00:41 GMT
"£500K FEES" You couldn't make this up, I have lost a lot of money here and trying to get all my money out but my last 10 loans are in default or late payment and my next worry is the Boat Loan which seems another joke. They might as well put everything at 100% LTV, Good at pushing out all these loans but not bothering about lenders money when it comes to repayment. Do not invest in this company which should change their name to Funding Unsecured!
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Post by mrclondon on Oct 2, 2017 12:05:28 GMT
Administrators charged over £500,000, at an hourly rate up to £420, leaving c£300,000 for us. Promised today. "£500K FEES" You couldn't make this up, I have lost a lot of money here and trying to get all my money out but my last 10 loans are in default or late payment and my next worry is the Boat Loan which seems another joke. They might as well put everything at 100% LTV, Good at pushing out all these loans but not bothering about lenders money when it comes to repayment. Do not invest in this company which should change their name to Funding Unsecured! I'm not sure where this £500k fees comes from, however that is not from the sale proceeds. The email from FS dated 23rd August gives the sale price and a complete breakdown of costs. The email was marked confidential so I won't copy and paste here, but some points to note a) the sale price was less than £500k b) the administrator fees were capped at just below £50k (actually higher) plus costs of c. £9k c) the legal fees were capped at just below £50k (actually higher) plus costs of c. £1.5k Todays email confirming the distribution of c. £300k net proceeds is exactly as per the email of 23rd Aug, albeit a bit later than anticipated at that time.
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Post by brightspark on Oct 2, 2017 12:14:24 GMT
Small investors will probably put the matter down to experience. Larger investors may not be so sanguine. Subsequent to the valuation in their general information FS advised investors that the turbine was"complete awaiting final connection to the grid". This seems to have not been entirely the case. At the valuation the valuer opined that because all the plant had only recently been installed that any modern equivalent replacement should the need arise would be identical. This does not square with their later comments concerning bringing the plant back into use would require modernisation of some components. I could go on. Certainly in my view for those hardest hit there are grounds for taking the matter to the FCA and perhaps for going to law.
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cmep
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Post by cmep on Oct 2, 2017 13:56:08 GMT
I must agree. I wonder how many of us are needed in order to put in a joint complaint to the FCA giving the inconsistent feedback given at the various times in this deal.
Whichever way you cut it, FS seem to not have done their due diligence correctly and surely that is part of their responsibility as an FCA authorised agent?
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Post by brightspark on Oct 2, 2017 13:57:59 GMT
No one wants to use Administrators but they have at least salvaged something from this debacle. The messages to investors conveyed by this mess are
1 Take what FS and borrowers say about prospective loans with large doses of salt.
2 Be very wary of valuation documents as they are produced for the use of borrowers.
3 Be aware that FS do not pay interest until a loan is complete so the original LTV increases as the loan progresses.
Needless to say high interest earned equates to high risk.
This lesson has cost me about 400 quid. I have given myself a good kicking for being so stupid.
Having put this miserable episode behind me I now look forward to resolution of the ill-fated london loan which grinds on endlessly on another platform.
Oh the joy of peer to peer lending!
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Oct 2, 2017 14:39:32 GMT
The figure of over £500,000 was for administering the whole mess, of which the FS loan was just a part. I can't see how to separate out the costs specific to our turbine and I did not receive any email on 23rd Aug.
Actually total costs of administration, including legal etc (for the 3 companies involved) was over £800,000.
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Post by banffy on Oct 2, 2017 15:19:36 GMT
A loss of 5.5K which works out about 70% loss and on top of that 0% Interest paid back. All other loans late and in default wonder who else is in the same situation. This is clearly not working for me so trying to get as much out by having to wait as I cant sell anything cause they are all late etc. So waste of time looking at any LTV they do not mean anything and personal Guarante just as bad then Adminstration fees are the worst cripler. Sure they are all ok tho no loss to them and that is why they keep hammering out these loans like a factory at work.
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mikes1531
Member of DD Central
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Post by mikes1531 on Oct 2, 2017 15:20:29 GMT
This loss is going to have a rather significant impact on FS's loan statistics...
Up to the end of August, total lost capital was £49k. The number will be 15 times as large when this loss is included.
At the end of August, the difference between the expected return and the actual return was 0.27% (13.54% vs. 13.27%). If that difference were to increase proportionately, it would become 4.05%, and that would result in an actual return of 9.49%. I recognise that the impact is unlikely to be exactly proportional, and there are also other factors involved, such as the length of time investors' funds were tied up -- which, in this case was more than three times as long as a 'normal' FS loan. The impact of this loss will be diluted somewhat by the loans repaid successfully in September and October, but I wouldn't be surprised to see the actual return reported at the end of October to be below 10%.
Quite sobering, actually.
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ribs
Probably not James Marshall
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Post by ribs on Oct 2, 2017 16:02:05 GMT
Bye bye Funding Secure.
I was winding down my money with them anyway, but maybe with a view of coming back one day.
After this utter farce with the turbine they will never see another penny from me ever again. Thankfully I didn't lose much, as I always diversify and live by the rule of "if I lost this money forever, how utterly ticked off will I be?" and if the answer is between "a fair bit" and not "lose sleep over it" then I invest.
Whilst I don't doubt that Funding Secure will continue to attract investment in the future, from newbies or those more forgiving than myself, I can't help but think their performance this past 12 months is really going to hurt their abilities to gain investment long term.
Given the entire point of the business model is that it shouldn't really matter if the debtor repays or not, given the security, this situation never should have happened.
Only two more loans to go... Both of which are in trouble... and I'm out for good, assuming I get anything back on either...
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Post by diamon89 on Oct 2, 2017 16:03:36 GMT
FS seem to be getting a hard time for this loan here, but we are all getting very high interest rates on our investments. Some of them will go sour. But as long as you don't have too much tied up in one loan, the fact that one or two loans go bad should still leave you with a much higher return than anything else. A lender with, say, 1% of their capital in the turbine loan has just lost about 0.7% of their capital (because around 30% was recovered). Really doesn't seem that bad. Of course, sometimes it is tempting to put more money in to get the bonuses or because there aren't enough loans to invest in ... the arithmetic quickly looks worse if you have 2% exposure per loan ... and ten loans go bad and recover just 50% of capital, then you've lost about 10% of your capital (10x 2% = 20%, * 50% recovery =10%)
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duck
Member of DD Central
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Post by duck on Oct 2, 2017 16:22:43 GMT
I don't know if anybody else read the affidavit that was written by one of the directors but it wasn't comfortable reading especially if you were one of the other principals involved.
As far as I'm concerned, the loan is closed so I'm moving on with a lighter wallet. Yes there are aspects that have frustrated me but to lay the blame at FS's door is I feel unjust, there was a lot more going on in the a...s companies.
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rgog
Member of DD Central
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Post by rgog on Oct 2, 2017 16:34:58 GMT
Diversify, Diversify, Diversify and keep to your investment plan. It is no different to investing in equities. Don't be tempted to "go large" for the bonus/higher interest rate. Remember your risk/return. And you are still going to have losses, accept it and plan accordingly.
Yes I have lost on this loan but over all I am making money, not as much as the headline rate, but I never expected to.
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rgog
Member of DD Central
Posts: 95
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Post by rgog on Oct 2, 2017 16:36:38 GMT
I don't know if anybody else read the affidavit that was written by one of the directors but it wasn't comfortable reading especially if you were one of the other principals involved. As far as I'm concerned, the loan is closed so I'm moving on with a lighter wallet. Yes there are aspects that have frustrated me but to lay the blame at FS's door is I feel unjust, there was a lot more going on in the a...s companies. Where can one access the affidavit>
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Post by diamon89 on Oct 2, 2017 16:39:47 GMT
I don't know if anybody else read the affidavit that was written by one of the directors but it wasn't comfortable reading especially if you were one of the other principals involved. As far as I'm concerned, the loan is closed so I'm moving on with a lighter wallet. Yes there are aspects that have frustrated me but to lay the blame at FS's door is I feel unjust, there was a lot more going on in the a...s companies. Can you point us in the direction of that affidavit, please? I don't think I've seen it.
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