mason
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Post by mason on Feb 1, 2017 20:25:57 GMT
That's the reason I put 'clarified' in quotes!  I take all policy statements from SS with a large dose of salt. I don't accept anything of that nature from them as being real until I see that it has been adopted in practice. On too many occasions, SS have announced that they were going to do something and then subsequently changed their mind without telling anyone. That isn't the way to develop the confidence of their investors, but up to now they don't seem to have been very concerned about that. We can hope that the appointment of a new Communications Officer means they are raising the priority of good communications. But, as before, I'll believe it when I see it producing results. Absolutely, although the information from cooling_dude is news to me (the discussion I remembered was something different). Unfortunately, this is something I am actually inclined to believe.
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adrianc
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Post by adrianc on Feb 1, 2017 21:54:00 GMT
The worry is that some of the people who stand to lose money or people who cannot afford to lose it and are not well educated and informed investors and fully aware of the risk. <shrug> More fool them. Who said P2P was a low-risk product for the uninformed? The bank is that way ->
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dandy
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Post by dandy on Feb 1, 2017 21:55:24 GMT
if its conspiracy theories we are going with then how about all negative loan 'interest payments' are funded by and wrapped within a well diversified portfolio paying 6% kind of like a synthetic CDO2  |
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mikes1531
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Post by mikes1531 on Feb 1, 2017 22:02:21 GMT
Those losses will be felt by the investors and not by saving stream who it feels to me are running a make a fast buck business and their strategy is to placate the masses for as long as possible to rack up more profits for their pockets. The big money to be made in a new venture such as SS doesn't come from profits that can be creamed off before a house of cards collapses. It comes from showing the model to be profitable and scalable and raking in the money from equity investors when the IPO can be organised. For that to work, the house of cards has to stay intact for at least a little while after the IPO. AC are headed in that direction, having raised something like £3M from equity investors, most of whom probably were early adopters as investors via the website. The House Crowd have done something similar. I think they've had three funding rounds so far. And as with AC, much of the money has come from their early adopters.
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GeorgeT
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Post by GeorgeT on Feb 1, 2017 22:05:50 GMT
The worry is that some of the people who stand to lose money or people who cannot afford to lose it and are not well educated and informed investors and fully aware of the risk. <shrug> More fool them. Who said P2P was a low-risk product for the uninformed? The bank is that way -> I can't see that information and a link to a bank on the SS website nor much information about the risks on the loan pages which is an FCA requirement. The hard Up single mums and little old ladies trying to earn a bit of income from their savings in these days of rock bottom interest rates may have quite a strong case if they lose their money.
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adrianc
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Post by adrianc on Feb 1, 2017 22:16:01 GMT
<shrug> More fool them. Who said P2P was a low-risk product for the uninformed? The bank is that way -> I can't see that information and a link to a bank on the SS website nor much information about the risks on the loan pages which is an FCA requirement. The hard Up single mums and little old ladies trying to earn a bit of income from their savings in these days of rock bottom interest rates may have quite a strong case if they lose their money. Should've gone to Specsavers, then. From the very, very, VERY front page of the SS website, just above the "Start Investing" button...
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bababill
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Post by bababill on Feb 1, 2017 23:05:09 GMT
In my opinion at least for PBL 040 SS have made it very clear the borrower is paying the interest.
On the updates tab from one week ago
" The customer ....is continuing to pay interest.''
I just cant figure out why the loan is negative days
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GeorgeT
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Post by GeorgeT on Feb 1, 2017 23:20:45 GMT
I can't see that information and a link to a bank on the SS website nor much information about the risks on the loan pages which is an FCA requirement. The hard Up single mums and little old ladies trying to earn a bit of income from their savings in these days of rock bottom interest rates may have quite a strong case if they lose their money. Should've gone to Specsavers, then. From the very, very, VERY front page of the SS website, just above the "Start Investing" button... As I said, not a word even in small print about any risk on the actual invest page against every loan where you actually type in the amount and invest and I think you will find that is an FCA requirement for full compliance if you read the rules. By the way please can you tell me which charm school you went to so I can avoid it.
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averageguy
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Post by averageguy on Feb 1, 2017 23:40:50 GMT
Handbags down
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Feb 2, 2017 0:30:46 GMT
Vote with yer feet, errrrrr, vote with yer Sell & Withdraw, I am!
Other Platforms are about as we know who offer good Loans, good Returns, and good Communication.
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greeb
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Post by greeb on Feb 2, 2017 8:18:18 GMT
If as CD suggests SS has in recent weeks changed their policy about covering interest for borrowers on negative day loans, this combined with the much larger proportion of negative day loans that has developed over the last year is significant in terms of platform risk. SS you have undertaken to improve comms and make this a priorty. It is really time for a clarifying statement, especially to identify in loan updates which loans are not servicing interest themselves. The secondary market is sending a clear message.
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Post by jackpease on Feb 2, 2017 8:44:59 GMT
Vote with yer feet, errrrrr, vote with yer Sell & Withdraw, I am! Other Platforms are about as we know who offer good Loans, good Returns, and good Communication. Beware of being dazzled by good communication! Some current basket cases had and still have excellent communication that lulled me into a false sense of security And bad communication does not necessarily mean that the underlying health of a platform is bad. Sometimes I think that 'good communication' is conflated with 'good news' - platforms that have high risk loans that apt to overrun may actually be only able to offer no news, or bad news. I sort of get why a platform might be reluctant to pump out endless no news/bad news updates - meanwhile younger platforms with fewer defaults/delays can carry on pumping out good news and look like angels. Jack P
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 2, 2017 11:13:52 GMT
Vote with yer feet, errrrrr, vote with yer Sell & Withdraw, I am! Other Platforms are about as we know who offer good Loans, good Returns, and good Communication. Beware of being dazzled by good communication! Some current basket cases had and still have excellent communication that lulled me into a false sense of security And bad communication does not necessarily mean that the underlying health of a platform is bad. Sometimes I think that 'good communication' is conflated with 'good news' - platforms that have high risk loans that apt to overrun may actually be only able to offer no news, or bad news. I sort of get why a platform might be reluctant to pump out endless no news/bad news updates - meanwhile younger platforms with fewer defaults/delays can carry on pumping out good news and look like angels. Jack P Bad news is better than no communication. For starters, I think investors need to understand that defaults should be considered the norm, and unless there is a problem with the security, it isn't necessarily bad news. The same with 'no. of defaults' stats; there will be defaults, the fact that SS have only had 2 (3 if you include the Hotel) is only an indication that it is still a young platform, and it has only grown substantially in the last year. A more telling stat is the amount recovered, not the number of defaults. This is an issue surrounding information available to investors, and the fact every loan is tradeable on the SM. Investors both potential and current, have the right to know what is happening with their loan.
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r1200gs
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Post by r1200gs on Feb 2, 2017 11:22:05 GMT
Beware of being dazzled by good communication! Some current basket cases had and still have excellent communication that lulled me into a false sense of security And bad communication does not necessarily mean that the underlying health of a platform is bad. Sometimes I think that 'good communication' is conflated with 'good news' - platforms that have high risk loans that apt to overrun may actually be only able to offer no news, or bad news. I sort of get why a platform might be reluctant to pump out endless no news/bad news updates - meanwhile younger platforms with fewer defaults/delays can carry on pumping out good news and look like angels. Jack P Bad news is better than no communication. For starters, I think investors need to understand that defaults should be considered the norm, and unless there is a problem with the security, it isn't necessarily bad news. The same with 'no. of defaults' stats; there will be defaults, the fact that SS have only had 2 (3 if you include the Hotel) is only an indication that it is still a young platform, and it has only grown substantially in the last year. A more telling stat is the amount recovered, not the number of defaults. This is an issue surrounding information available to investors, and the fact every loan is tradeable on the SM. Investors both potential and current, have the right to know what is happening with their loan. Exactly my point on the other thread. Certain loans are still being gleefully snapped up while VERY relevant information is not being released. :-(
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Post by jackpease on Feb 2, 2017 11:51:22 GMT
Please don't get me wrong - I agree that platforms should provide info, and I reckon there are loans on the secondary market at SS which could be bought by newbies who could then make an arguable claim that they were mis-sold because of the lack of info.
The upside of SS stepping back from communication is the breakdown in trust and increased scrutiny of its loans and highlighting of the risks involved.
Jack P
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