mikeb
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Post by mikeb on Jul 3, 2014 17:20:59 GMT
The bad debt isn't necessarily irrecoverable The part I labelled "irrecoverable" is due to FC saying, in so many words, "we have closed the book on this one, there is nothing to recover". I'd call that pretty irrecoverable 
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markr
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Post by markr on Jul 3, 2014 18:01:30 GMT
The part I labelled "irrecoverable" is due to FC saying, in so many words, "we have closed the book on this one, there is nothing to recover". I'd call that pretty irrecoverable I have some bits like that too but on the bright side I also have some that are making regular payments and will probably be complete recoveries one day 
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 3, 2014 23:37:31 GMT
Im on 11% recovery. Tired of FC so now mostly withdrawing funds, with the odd lend on secured loans, given that PGs generally seem to be worthless. Not convinced that FC have the staff to keep on top of the volume anymore, seem to have to do a lot of chasing & prompting for info. I have one loan which went late in Feb with only a couple of payments left but no comments posted for 4 months (after my prompting?)and nothing further since. More hassle than its worth now IMHO |
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min
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Post by min on Jul 4, 2014 6:07:18 GMT
Im on 11% recovery. Tired of FC so now mostly withdrawing funds, with the odd lend on secured loans, given that PGs generally seem to be worthless. Not convinced that FC have the staff to keep on top of the volume anymore, seem to have to do a lot of chasing & prompting for info. I have one loan which went late in Feb with only a couple of payments left but no comments posted for 4 months (after my prompting?)and nothing further since. More hassle than its worth now IMHO I'd pretty much concur with this. Current recovery 10.5% and is rising with about a dozen making regular payments. Problem as I see is I have no idea (and no way of finding out) how far the repayments are eating into original bad debt.
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jm72
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Post by jm72 on Jul 4, 2014 7:35:17 GMT
Im on 11% recovery. Tired of FC so now mostly withdrawing funds, with the odd lend on secured loans, given that PGs generally seem to be worthless. Not convinced that FC have the staff to keep on top of the volume anymore, seem to have to do a lot of chasing & prompting for info. I have one loan which went late in Feb with only a couple of payments left but no comments posted for 4 months (after my prompting?)and nothing further since. More hassle than its worth now IMHO I'd pretty much concur with this. Current recovery 10.5% and is rising with about a dozen making regular payments. Problem as I see is I have no idea (and no way of finding out) how far the repayments are eating into original bad debt. I'm sitting on a 14.5% recovery and rising - but heavily influenced by the loans that FC repaid. The only way that I've found to keep track of remaining outstanding amount is through the transaction statements - means tracking each loan part for each loan and summing up. Things do seem to be improving, both in the case of less loans going into Bad Debt (as can be seen from graphs on the statistics tabs), but also in recovery - there seems to be more systematic pushing to get things set up, charging orders, bankruptcy. About a year ago, it used to be - we're chasing our lawyers for an update. FC did say at one stage that they had done a review of all old loans, I think it was early this year, which led to the Zombie loan death knell, but also reinvigorating some old loans (for example, one loan where there was a charge on the guarantors property - nothing was being done to actually get cash, just waiting for the property to be sold / remortgaged. On the recent threat of enforced sale, the guarantor is now coughing up money). I see this as a positive move. Plus moving the recovery process in house is meant to mean higher recovery - previously up to 20% (I think) of recovery could be charged as a fee, this is now being covered by the 1% monthly fee that we all pay. One other thing that isn't always clear is whether recovery means capital or capital and interest. There seems to be a push to getting capital and interest, but I'm not sure about the tax implications of as I though that recovery payments were capital rather than interest and therefore subject to capital gains?
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Post by dram2013 on Jul 17, 2014 12:23:42 GMT
I agree with markr that the figures are fairly meaningless; I too expect to recover more than 4% over time and FC appear to be pursuing lates with more alacrity than previously. Personally, my experience of bad debt/late payments etc has not dented my enthusiasm for p2b lending generally or FC in particular. Only a tiny percentage of my loans give me any cause for concern; the majority of the bad debts/lates had some degree of predictability and were often a reflection of my desire to get the money out of my account quickly whilst ignoring warning bells, some were less predictable or completely unforeseen e.g. fires (although I did invest in a number of firework importers!). The vast majority of my loans pay up on time each month and I expect will continue to do so..........if that isn't tempting fate.......fingers crossed.I think you have the key to it - "only a tiny percentage of my loans give me cause for concern". So spread the risk as wide as possible. I took some heavy hits a couple of years ago because some (bad) loans each accounted for 5% of my portfolio. Since then, I've restricted each loan to 0.25% (eventually falling to 0.1% as total investment increases) and my net return has recovered nicely - obviously, it will be even better if recovery rates improve.
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Post by GSV3MIaC on Jul 17, 2014 12:53:04 GMT
It's called de-worseification .. eventually you can be guaranteed to meet the average head on, but you'll never manage to beat it.
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Post by valerieb on Jul 21, 2014 11:08:31 GMT
It's called de-worseification .. eventually you can be guaranteed to meet the average head on, but you'll never manage to beat it. Which average are you talking about? Is it the fully diversified return rate FC quote on our summary pages? If so, isn't that easily beaten? I spread my loans widely but not indiscriminatingly; there are weeks when several or more loans look appealing and at other times none. The difficulty I find is, in a poor week, in stopping myself from overriding my initial assessment by throwing recycled money into the least bad looking offer because I want the cash to be out and working asap. (I'm talking £20 bids here; I'm ultra careful at the TC £1000 min bid level). I'm not averse to being a diversification criminal. Nearly all of my bids are at the 0.1% level but one is currently around 5% having worked it's way down from 10%, every now and again I top it up from the secondary market.
I think I'm trying to say that almost anyone can beat FC's average rates but it means investing quite a bit of time as well as money.
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Post by GSV3MIaC on Jul 24, 2014 13:10:48 GMT
It's easily beaten if you don't go putting £20 in everything which appears. Actually you can probably beat it even then if you shop on the secondary market, or if you have time to be in at auction closes.
The best, and worst, returns will always belong to the diversification criminals though (he says, sitting at 12.3% in one company).
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jo
Member of DD Central
dead
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Post by jo on Sept 1, 2014 14:26:41 GMT
1/9 update 5.02% (from 3.6% on 1/7).
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min
Member of DD Central
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Post by min on Sept 2, 2014 7:11:08 GMT
1/9 update 5.02% (from 3.6% on 1/7). Similar movement here: 11.6% on 1/9 (10.7% on 4/7). Would be better but had 3 (small) defaults in same period.
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min
Member of DD Central
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Post by min on Oct 3, 2014 16:58:10 GMT
1/9 update 5.02% (from 3.6% on 1/7). Similar movement here: 11.6% on 1/9 (10.7% on 4/7). Would be better but had 3 (small) defaults in same period. Went to 12.25% earlier today with a 50% recovery (ok I only had £17 in the loan). FC double whammy at 5 pm. 2 x defaults (one of £14 and one of £9). Now 12.1% FC give with one hand ..........
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niceguy37
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Post by niceguy37 on Oct 7, 2014 16:00:09 GMT
I'm on 0%  Admittedly it's only one loan, but it's disappointing to get nothing back when it was an accounting firm with a director's guarantee (loan 154). One assumes the guarantor is a chartered accountant, and that his reputation is probably worth the cost of the loan, so I can't understand how FC are unable to squeeze any recovery out of him/her. It's been 2 years so I've given up & gone to TC & AC. |
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Post by gaspilot on Nov 3, 2014 17:12:28 GMT
Mine's 0.94% on 5 defaults!!!
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min
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Post by min on Nov 3, 2014 19:39:51 GMT
Mine's 0.94% on 5 defaults!!! 12.8% on 60!! defaults. That's over 3.5 years. Annualised return = 7.5% Recovery payments much improved over last year.
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