09dolphin
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Post by 09dolphin on Dec 12, 2018 9:01:28 GMT
Whilst I'm now only in these loans for £50.00 and I have benefitted from interest in the renewals in the past I do think FS are treating investors really badly - and I don't understand why or what they have to gain by doing so. Someone may be able to explain!!
To not keep your investors fully informed when things go wrong seems counter productive when investors are your life blood. People do respond to honesty but uncertainty is death to investment.
It is my money that I have entrusted to FS and I accept that investments can go wrong but surely we, the investors, have a right to know what is happening - obviously FS disagree.
Does this increase my confidence in FS - NO Would I make further cash investments using FS - NO
Sorry FS but the days of my investing or even reinvesting are long gone because I just don't trust your management of existing loans where there are problems and your LTVs leave a lot to be desired.
I do have one comment on a more positive note. The concept of a pawn broking site was good. On a more negative note - Shame that the management of loans leaves an awful lot to be desired
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arby
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Post by arby on Dec 12, 2018 9:25:10 GMT
Whilst I'm now only in these loans for £50.00 and I have benefitted from interest in the renewals in the past I do think FS are treating investors really badly - and I don't understand why or what they have to gain by doing so. Someone may be able to explain!!
To not keep your investors fully informed when things go wrong seems counter productive when investors are your life blood. People do respond to honesty but uncertainty is death to investment.
It is my money that I have entrusted to FS and I accept that investments can go wrong but surely we, the investors, have a right to know what is happening - obviously FS disagree.
Does this increase my confidence in FS - NO Would I make further cash investments using FS - NO
Sorry FS but the days of my investing or even reinvesting are long gone because I just don't trust your management of existing loans where there are problems and your LTVs leave a lot to be desired.
I do have one comment on a more positive note. The concept of a pawn broking site was good. On a more negative note - Shame that the management of loans leaves an awful lot to be desired
Many people would argue the opposite- people in general do not accept honesty, and it's often better to give no update than an uncertain update. I'm someone who is quite happy to be told "recoveries are uncertain, but we expect to be able to recover 60-90% of the capital", but most companies are advised to not give such updates as uncertainty is a bigger killer than just silence.
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r1200gs
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Post by r1200gs on Dec 12, 2018 10:51:36 GMT
Live help said that the delay was in allocation of the money, it does not take from 30/11 to 12/12 to allocate the money. Something stinks. Can't be bothered with live help any more, as soon as you ask any difficult questions live help becomes no help at all.
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coop
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Post by coop on Dec 12, 2018 14:22:39 GMT
Are they seriously just longing out on this to pad the stats for another month?
Or have they forgotten which assets belonged to which loan, what sold and for how much?
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arby
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Post by arby on Dec 12, 2018 14:26:11 GMT
Are they seriously just longing out on this to pad the stats for another month? Or have they forgotten which assets belonged to which loan, what sold and for how much? If they sold assets across multiple loans as a single job lot then it would create some issues regarding how to allocate any shortfall. Does every loan get the same shortfall? Would that leave FS open to claims that some of the assets were clearly more valuable than those in other loans, and therefore the shortfall should be less in one loan than the other? A right headache. Much easier if the separate loan assets were actually sold as separate batches. Obviously I (we?) have no clue how they actually were packaged.
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coop
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Post by coop on Dec 12, 2018 14:31:04 GMT
Indeed, I hadn't considered that.
However grouping items together for sale in auction (or, perhaps otherwise) when they are from different loans is an obvious accident waiting to happen. Wouldn't put it past FS though.
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arby
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Post by arby on Dec 12, 2018 14:34:36 GMT
Indeed, I hadn't considered that. However grouping items together for sale in auction (or, perhaps otherwise) when they are from different loans is an obvious accident waiting to happen. Wouldn't put it past FS though. Let's hope not, but it would be one reason why a seemingly simple allocation exercise isn't so simple...
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Post by df on Dec 12, 2018 15:00:05 GMT
Are they seriously just longing out on this to pad the stats for another month? Or have they forgotten which assets belonged to which loan, what sold and for how much? If they sold assets across multiple loans as a single job lot then it would create some issues regarding how to allocate any shortfall. Does every loan get the same shortfall? Would that leave FS open to claims that some of the assets were clearly more valuable than those in other loans, and therefore the shortfall should be less in one loan than the other? A right headache. Much easier if the separate loan assets were actually sold as separate batches. Obviously I (we?) have no clue how they actually were packaged. I'd imagine if the remaining lot was sold in one package the shortfall will be allocated proportionally. I doubt of any claims can be successful as nobody knows what is the value of each individual item. We'll see what happens, but I'll be happy with any repayment and looking forward for "train" case to be closed. Even if there is some capital loss - I'd rather know where I stand with my gains and losses.
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Post by beepbeepimajeep on Dec 12, 2018 17:48:27 GMT
Can we have a vote of no confidence in Funding Secure. This unexpected delay is in contempt of investors.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Dec 12, 2018 18:17:10 GMT
If they sold assets across multiple loans as a single job lot then it would create some issues regarding how to allocate any shortfall. Does every loan get the same shortfall? Would that leave FS open to claims that some of the assets were clearly more valuable than those in other loans, and therefore the shortfall should be less in one loan than the other? A right headache. Much easier if the separate loan assets were actually sold as separate batches. Obviously I (we?) have no clue how they actually were packaged. I'd imagine if the remaining lot was sold in one package the shortfall will be allocated proportionally. I doubt of any claims can be successful as nobody knows what is the value of each individual item. We'll see what happens, but I'll be happy with any repayment and looking forward for "train" case to be closed. Even if there is some capital loss - I'd rather know where I stand with my gains and losses. It will be intresting to see if you make an overall loss re. Investment / Return....
At the moment I could get nothing back capital wise and still be ahead as remaining capital was reinvestment from sales or partial repaymets and profit overall would be 8-12% if no further funds were forthcoming.This is a total % not APR
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p2ploser
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Post by p2ploser on Dec 12, 2018 19:09:41 GMT
I'd imagine if the remaining lot was sold in one package the shortfall will be allocated proportionally. I doubt of any claims can be successful as nobody knows what is the value of each individual item. We'll see what happens, but I'll be happy with any repayment and looking forward for "train" case to be closed. Even if there is some capital loss - I'd rather know where I stand with my gains and losses. It will be intresting to see if you make an overall loss re. Investment / Return....
At the moment I could get nothing back capital wise and still be ahead as remaining capital was reinvestment from sales or partial repaymets and profit overall would be 8-12% if no further funds were forthcoming.This is a total % not APR
Suggest raising a formal complaint with a view to taking it to the FCA when not satisfied with their response. This loan is a great example of their failed business model, loan is 20 months overdue then it takes weeks to “allocate the funds”. FS won’t listen to its investors, maybe if someone threatens their ability to do business they will listen.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Dec 13, 2018 2:41:27 GMT
It will be intresting to see if you make an overall loss re. Investment / Return....
At the moment I could get nothing back capital wise and still be ahead as remaining capital was reinvestment from sales or partial repaymets and profit overall would be 8-12% if no further funds were forthcoming.This is a total % not APR
Suggest raising a formal complaint with a view to taking it to the FCA when not satisfied with their response. This loan is a great example of their failed business model, loan is 20 months overdue then it takes weeks to “allocate the funds”. FS won’t listen to its investors, maybe if someone threatens their ability to do business they will listen. Still within the 24 months you should allow for all P2P investments to settle, however this usually applies to property and as mentioned not an overall loss just a reduced profit which will still be many times this years stock market or bank 🏦 deposit returns. What is the alternative sell to first person who wants to buy and take a loss or wait for better market conditions and get greater return. It is all in the mental attitude. Write it off mentally and it should not be a problem if you have managed your portfolio properly. It should have already been taken care off in your factored in default allowance which could be up to 20% of portfolio with up to 100% capital losses (highly unlikely nearer 5%) in a 2 year period and still get good return.
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adrian77
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Post by adrian77 on Dec 13, 2018 9:01:09 GMT
this is why I am doing my mega list allied with the excellent graphs being done - I would say the above figure is quite reasonable but I guess the key question is quite simply what is the average return for an FS loan - for me pretty close to zero as about 1/3 of my loans are "still active " with them being 6 -18 months late. Being a born-again slaphead I failed to consider just how damaging such problematic loans are to the bottom line especially when I suspect there are many more disastrous recoveries to come...
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coop
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Post by coop on Dec 13, 2018 9:40:46 GMT
Interesting point about return vs length of loan here. Even if full capital is recovered if the whole thing takes 3 years total to resolve and you end up with 12% interest overall after losses and/or loss of interest you're only at 4% APR which are far too low for associated risks and uncertainties in what I think of as the higher risk band of P2P lenders.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Dec 14, 2018 0:33:14 GMT
Interesting point about return vs length of loan here. Even if full capital is recovered if the whole thing takes 3 years total to resolve and you end up with 12% interest overall after losses and/or loss of interest you're only at 4% APR which are far too low for associated risks and uncertainties in what I think of as the higher risk band of P2P lenders. Yes it may be 4% if you just buy and leave loans. (Which is still x2 most ISAS) Manage Loans ie. buy/sell invest minimal amounts and you get >15% APR My current 3 year average is above this. Even taking £26000 in collateral as a 100% loss only reduces return a few % points and nowhere less than 10% and I’m sure even collateral will return min 50% (of course FCA will feel morally bound to make up difference.  ) P2P means PATIENCE x2 PATIENCE the only way to stay sane .
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