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Post by transo on Jan 2, 2015 13:22:10 GMT
I had assumed that as it was downgraded and had the comment; "This loan has been downgraded as we have received notice that the company is entering a voluntary arrangement. We have been advised by the prospective supervisor that we are included in the arrangement and are expected to be paid in full. In any case, we have a fixed charge security." that payment had stopped. I have checked the repayments, and of course you are corrert. Thank you, a good note to start the New Year. I have had time today to download the December figures and run a couple of queries on the account transactions. Yep couple of entries as recorvery payments. So loans become downgraded, but still pay? So what loans make up the bad debt figure? Are these loans in default? Is money from a defaulted loan classed as a recovery, not a repayment? Do Faulty Crew flag defaulted loans in some way? How would I work out money "lost" to set against tax post April? Ahh, I didn't think to check whether the risk band had been removed (i.e. the loan had been downgraded). Downgraded loans (where FC remove the risk band) are not defaults and you still continue to earn the interest on these loans. Any repayments they make will continue to be treated as normal repayments, not recoveries or anything. Just because a loan has been downgraded doesn't mean you won't get repayments, sometimes the downgrades are quite short and the risk band is re-introduced, in others they remain downgraded for ever. I've had ones which were downgraded because the original company went bankrupt but which continued to be paid on time every month by the guarantor until the loan was paid off. I've got one at the moment where it was downgraded because of financial difficulties at the firm, but they've now made payments on time and FC are proposing to re-instate the risk band if the next payment is received on time. If the company does enter into a voluntary agreement I'd be interested to hear what happens with the asset security (I used to hold the loan but sold it a while back as the rate wasn't very good). There aren't many asset secured (not property) loans on FC at the moment unfortunately but I've always thought they should be quite a good bet. Hopefully this case won't disprove that theory. Comments on downgraded loans get highlighted in yellow in the comments section at the bottom of your home page. Unfortunately they don't seem to do anything to highlight defaulted loans.
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blender
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Post by blender on Jan 2, 2015 13:27:47 GMT
Hi Loanstar.
The default is the key event. Money distributed to you before default counts as repayments. FC do not distribute part repayments received and so at the time of default these are held over. When a loan defaults, or is defaulted, the amount of principal outstanding to you (excluding accrued interest and excluding any part repayments held by FC) becomes a loss. That amount is then fixed both in your summary as aggregate losses and in your loan listing as the loan/part loss. Any further money distributed to you after the loan has been defaulted comes as recoveries, net of invisible FCRL fees, which accumulates in the aggregate recoveries in your summary, but the figure appears nowhere else except in the transaction statement. Finding where you are on recovering each default is hard work (deliberately so? Surely not?)
There are some wierdnesses here. One loan was accepted and subsequently not taken up because the asset which was to be bought and owned by FC was no longer required. The money never left the FC client coffers but because the loan was active from the acceptance date, FC defaulted the loan, paid back all the principal and called it 100% losses and 100% recoveries.
Edit - missed Transo's post, sorry for any duplication.
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jo
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Post by jo on Jan 8, 2015 8:28:18 GMT
1/9 update 5.02% (from 3.6% on 1/7). 4/11 update: 6.17%. Bad news is the absolute number is slightly higher  8/1/15 update 11.27%. Moving in the right direction.
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markr
Member of DD Central
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Post by markr on Feb 5, 2015 10:58:40 GMT
Thanks to a full recovery of capital on loan 1358, my figure has increased to 19.4% overall, or 12.2% if I disregard the 2 loans that FC repaid.
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min
Member of DD Central
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Post by min on Feb 6, 2015 7:12:58 GMT
Thanks to a full recovery of capital on loan 1358, my figure has increased to 19.4% overall, or 12.2% if I disregard the 2 loans that FC repaid. Similar story after 1358 recovery. 14.9% overall - 13.6% if I don't count Flailing Capstans repayments on loan that was deemed to be v dodgy (default before 1st payment).
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Steerpike
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Post by Steerpike on Feb 6, 2015 8:48:32 GMT
My bad debts are 5.17% of total earnings and recoveries are .2% of bad debts - do I win a prize?
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Post by ranjeb on Feb 6, 2015 9:47:12 GMT
I'm sitting on 0.02% bad debt/total earnings and 55% recovery after 3 years in FC, this is only one loan and hoping for a 100% recovery.
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eddie
i have put up with a great deal from the likes of you people, a very great deal....
Posts: 63
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Post by eddie on Mar 29, 2015 12:15:03 GMT
£710 in bad debt, from £2770.00 earned, with £18 in recoveries, over 14 months. im trying to get odds from betfair on being struck by meteorite debris.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Mar 29, 2015 12:28:44 GMT
£710 in bad debt, from £2770.00 earned, with £18 in recoveries, over 14 months. im trying to get odds from betfair on being struck by meteorite debris. I actually received a recovery payment from Fudged Computations on the day of the eclipse,which is ironic as they tend to come along with the same frequency.
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merlin
Minor shareholder in Assetz and many other companies.
Posts: 902
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Post by merlin on Mar 29, 2015 15:37:07 GMT
I gave up trying to sort out my net losses gains etc. in detail awhile back now. I have been investing in FC for a bit over three years now and my net annual earnings across this period work out to 6.7% pa. To put another way 42% of my earnings have been taken up by FC's costs and losses. I should perhaps state that I have not been involved in flipping. For nearly a year now I have not added to my FC investment as I can no longer get the rates that I need to maintain my net earnings. Consequently my gross investment in FC is falling and if the status quo is maintained for very much longer my investment will run down to nil.
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markr
Member of DD Central
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Post by markr on Mar 30, 2015 9:37:24 GMT
Nooo, you're looking at it the wrong way, Fictitious Companies isn't about net earnings and returns and percentages, after all if the numbers were important Flawed Counting would get their sums right. No, it's all about putting the Fun in Fundamentally Crappy. It's about silly names and creative asterisks, punny loan titles, chuckling about the latest lame excuse for not paying, marvelling at the antics of the tall one and occasionally donating 20 quid to the Welsh Scrap Merchant Benevolent Fund.
Fairground Candyfloss is like the 2p falls at the seaside; it's a mildly entertaining way to spend a wet weekend, and it allows you to have some fun with your loose change before it all inevitably disappears into the bowels of the machine.
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eddie
i have put up with a great deal from the likes of you people, a very great deal....
Posts: 63
Likes: 21
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Post by eddie on Mar 30, 2015 16:48:49 GMT
I gave up trying to sort out my net losses gains etc. in detail awhile back now. I have been investing in FC for a bit over three years now and my net annual earnings across this period work out to 6.7% pa. To put another way 42% of my earnings have been taken up by FC's costs and losses. I should perhaps state that I have not been involved in flipping. For nearly a year now I have not added to my FC investment as I can no longer get the rates that I need to maintain my net earnings. Consequently my gross investment in FC is falling and if the status quo is maintained for very much longer my investment will run down to nil. actualy just worked out that my bad debt is 4.4% of my total investment. why did i think when fc talk about bad debt that the figures they quote would be on interest earned? my bad.
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eddie
i have put up with a great deal from the likes of you people, a very great deal....
Posts: 63
Likes: 21
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Post by eddie on Apr 11, 2015 9:52:09 GMT
I notice it is not possible to isolate bad debt from late-processing, making it difficult to fully engage in obsessing and quibbling with fat chance about recovery rates. Also when checking tax statement it would be good if bad debt listed in that period had loan numbers attached and amounts.
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jo
Member of DD Central
dead
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Post by jo on May 8, 2015 13:46:44 GMT
4/11 update: 6.17%. Bad news is the absolute number is slightly higher 8/1/15 update 11.27%. Moving in the right direction. 20% recovery as of today...still heading right direction.
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Steerpike
Member of DD Central
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Post by Steerpike on May 8, 2015 14:57:12 GMT
My bad debts are 5.17% of total earnings and recoveries are .2% of bad debts - do I win a prize? Bad debts are now 5.78% of gross earnings, recoveries 3.16% of bad debts, and fees 10.83% of gross earnings
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