c88dnf
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Post by c88dnf on Aug 31, 2017 12:10:41 GMT
New tranche now listed. A+ @8%. No mention in the loan listing or IR of the past history of this series of loans. Still "A+" and 2 percentage points lower despite being a delinquent loan. Listed before September 18th too, so not hiding behind the wall of invisible goodies. I have to admire FC's sheer cheek. Everyone should buy lots of this loan: then I can get my money back. 
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adrian77
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Post by adrian77 on Aug 31, 2017 12:58:36 GMT
Am I being thick here or is this a joke?
This developers told us he had 70 potential buyers for earlier stages so despite this he still has
£1.5m owing at (12% ?) which has not been paid for about 8 months. So what do FC do - foreclose as they said they would - oh no- they give him another loan at 8% in which to repay it! But it gets worse - as he is borrowing money to repay prior developments then how on earth is he going to pay for this latest tranche. He is going to need to service £1.5Mor whatever for the past tranches and new loans for this latest development. Personally I have enough hassle funding current developments let alone current and prior ones!
I tell you what I think - FC know this one is problematic and they are playing us for fools. I bet once it is September 19th they will float new loans "under the bonnet" in order to fund this latest tranche (they may even possibly give him a very cheap rate just to help him clear the problem).
Once done FC will simple wait for this chap to default and sell the properties in fire sale or whatever.
That said I wonder if this loan is "safe" i.e. FC will ensure it is floated to the junk general bond
offering--- not sure will have to think about it....
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damar
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Post by damar on Aug 31, 2017 15:40:59 GMT
FC don't appear to be happy with what I consider to be quite pertinent questions and have removed them.
I wonder why..............
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acky
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Post by acky on Aug 31, 2017 15:53:42 GMT
Listing at 8% after all this history of late payment and broken promises is a disgrace and shows the contempt with which FC hold investors. They know Autobid will fill the loan so the rate is irrelevant to them. What REALLY makes me laugh is the comment against the old loans now c. 209 days late: "The borrower has expressed an interest in settling the loan" - that is SO big of them, don't you think?
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andyp
Stubborn Yorkshireman from the rhubarb triangle
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Post by andyp on Aug 31, 2017 15:53:49 GMT
It isn't a total dissent blackout, you just need to make sure that you phrase your posting as a question to the borrower, that way it complies with their rules.
For example they have retained my question from this morning..
They did however take exception to my pseudo-question this afternoon which I am happy to reinstate here
All it said was. "Is there anybody out there, or is everyone busy at FC's Thursday afternoon Complacency Club?". How could anyone take offence at what we all know sums up the position? No sense of humour some people.
People still seem happy to buy despite targeted criticism in the questions, they brought on £452,275 in five and a half hours.
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rogerthat
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Post by rogerthat on Aug 31, 2017 16:29:47 GMT
I say chaps..can we offer more encouragement to investors for just a few days more ?..be nice..please  |
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andyp
Stubborn Yorkshireman from the rhubarb triangle
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Post by andyp on Aug 31, 2017 16:40:45 GMT
Dont worry Roger, the general lending public are not deterred by trivialities like non payment or overall viability.
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adrian77
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Post by adrian77 on Aug 31, 2017 16:51:59 GMT
True but I think that will change in 1-2 years when these chickens come home to roost...to future "remoaners" I would politely say "you were warned..."
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p2p2p
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Post by p2p2p on Aug 31, 2017 17:11:29 GMT
Has the lender being paying me interest for the 8 months the loan has been late? As far I can see they've had my money for free. And now FC want to bail them with a new loan. No way should FC allow them back in the system.
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c88dnf
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Post by c88dnf on Aug 31, 2017 17:37:06 GMT
Has the lender being paying me interest for the 8 months the loan has been late? As far I can see they've had my money for free. And now FC want to bail them with a new loan. No way should FC allow them back in the system. No sir, FC want new investors - not FC - to "bail them". I would go as far as to say that FC are hoping and praying they can keep this and other delinquent property loans rolling on, so they don't have to acknowledge a default on supposedly secured investments which might just attract FCA interest. As per another thread posting, I can see this being the next PPI scandal in a few years when some P2P firms' ambitions to run "black box" investment opportunities for the less sophisticated investors result in much lower returns than headlines "targets" suggest. It would be nice if the FCA were being more assertive now, rather than bolting the stable door in due course.
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blender
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Post by blender on Aug 31, 2017 20:23:32 GMT
I thought the main role of the FCA was to apportion blame after things go wrong.
Perhaps a group of holders of this loan should take the moral high ground, and should write to the FCA demanding that FC should not repay their principal, plus 12%, with cash from other unsuspecting muppet investors, and should demand that the loan be defaulted and their principal should become losses.
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rogerthat
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Post by rogerthat on Aug 31, 2017 22:15:41 GMT
True but I think that will change in 1-2 years when these chickens come home to roost...to future "remoaners" I would politely say "you were warned..." Seems to me that FC are endeavouring with their proposed menu choice to actually remove the lending aspect of the public they are attempting to woo...what could possibly go wrong ? 
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easylender
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Post by easylender on Aug 31, 2017 23:10:44 GMT
As much of this loan has now been repaid and the first charge security has been retained isn't the LTV now much lower? Would that not justify a lower interest rate?
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blender
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Post by blender on Sept 1, 2017 7:02:09 GMT
As much of this loan has now been repaid and the first charge security has been retained isn't the LTV now much lower? Would that not justify a lower interest rate? All other things being equal, yes. However, the fact that the borrower has failed to repay a fixed-term loan for many months, and FC was on the point of defaulting, is also relevant. Moving this borrower from A to A+ is an insult.
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Post by william0101 on Sept 1, 2017 11:03:10 GMT
I'm not caught up in this particular whirlpool but is the rating for the loan or the borrower ? e.g. if Andy Capp had 5 failed property projects and then comes up with a good one why shouldn't the good one be A+ ? I'm seeing a lot of sour grapes on the property loans, I'm fortunate not to have believed in property as much as you silly UK-ians do |
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