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Post by dereksdad on Dec 18, 2016 17:42:29 GMT
Still getting to grips with the conventions of P2P lending, but enjoying the experience.
Repayment of one of my FC loans is now 25 days late. FC are making some effort but the borrower is not apparently providing the information they promised. My question is: is it acceptable for me to email or telephone the borrower direct to inquire what their repayment plans are. My investment is small and I'm not in a panic - just interested to know the correct procedures.
If it's not considered appropriate to directly contact a borrower, then why not??
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Liz
Member of DD Central
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Post by Liz on Dec 18, 2016 18:06:27 GMT
Still getting to grips with the conventions of P2P lending, but enjoying the experience. Repayment of one of my FC loans is now 25 days late. FC are making some effort but the borrower is not apparently providing the information they promised. My question is: is it acceptable for me to email or telephone the borrower direct to inquire what their repayment plans are. My investment is small and I'm not in a panic - just interested to know the correct procedures. If it's not considered appropriate to directly contact a borrower, then why not?? No, that is a very bad idea. It is probably against the site rules for a start, secondly, how does the firm know who you are? They will probably tell you to do one.
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star dust
Member of DD Central
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Post by star dust on Dec 18, 2016 19:12:37 GMT
Still getting to grips with the conventions of P2P lending, but enjoying the experience. Repayment of one of my FC loans is now 25 days late. FC are making some effort but the borrower is not apparently providing the information they promised. My question is: is it acceptable for me to email or telephone the borrower direct to inquire what their repayment plans are. My investment is small and I'm not in a panic - just interested to know the correct procedures. If it's not considered appropriate to directly contact a borrower, then why not?? I don't know of any platform who supplies contact details for their borrower's even if they may advise lenders of their identity (and they don't always do that), there are privacy and other legal reasons for that. As Liz said, this type of activity would no doubt be a breach of your contract with the platform, if you don't want your account suspended, or yourself ending up in the courts I'd advise against it. Legal reasons aside, for some loans there could be hundreds or even thousands of lenders - do you think a bombardment of emails or phone calls from them will help the business or their situation? Put yourself in their shoes, you may not have missed any payments, but have you ever borrowed any money; would you want the lender - bank, credit card, relative, friend, or if it was a P2P loan hundreds of lenders, contacting you to demand information on what you did with the money or how you are going to repay? If you think 25 days is late you ain't seen nothing yet. Loan defaults are part of the territory and must be expected, if you've escaped them so far then you are lucky. For non-asset backed loans where the platform doesn't have a provision fund you need to factor them in to your expected overall return, for secured lending you will still get defaults, but probably have a better chance of getting at least some of your capital back eventually (although you may not). Expect delayed repayments, loss of interest, and even loss of capital, but diversify and you should still end up with a decent return. Oh, and welcome to the a forum by the way, you'll find a lot of knowledge, experience and useful information here 
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Post by Harland Kearney on Dec 19, 2016 1:21:33 GMT
Do not attempt to contact the borrower directly, this is a breach of the platforms services. Diversify and expect Delays/Uncertainty though update information and defaults/losses of capital and/or interest. Unsecured lending comes with this risk but factor it into your projected returns and you will come out with a decent return.
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