james21
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Post by james21 on May 8, 2017 11:02:34 GMT
when I started in PtoP last Sept I opened an account to FC and used auto buy, in my ignorance, got put into many long term unsecured loans, afterwards I selected all loans myself and only went for property that was asset backed. The defaults (and lates, probably going to default) on the non property loans are now rolling in. I have recently put all (that I can) of the original auto buy non property loans on sell and infact they have been passed on. I will be out of FC at some time in the future, I just dont like then for their non property loans and high default level
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markr
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Post by markr on May 8, 2017 13:52:51 GMT
please, what are FC's 'discretionary repayments', what's FC's criteria for awarding them and how much of the '40%' recovered has come from 'discretionary repayments'? Very, very occasionally, when a loan has gone bad, FC have returned lenders' capital to them. They don't provide a great deal of detail about why, generally blaming "unusual circumstances", and are always at pains to point out the repayment is "discretionary" or "a gesture of goodwill". I have just over 100 defaulted loans, and of these just 3 were refunded by FC. I'm not sure if there were any others. The circumstances surrounding them were: Wine merchant: Borrowed to buy stock for their off-licence, then vanished without making any repayments. FC found the borrower a few months later but they filed for bankruptcy, and at this point FC repaid lenders. Sh*t House: This borrower had an FC loan that was repaying on time. Came back for a second loan, went into administration without making any repayments on the new loan. FC refunded lenders for the new loan, but not for the original one (which had made 12 out of 36 payments). Jeans Genie: This one was a bit different in that the borrower had 2 loans and both were making repayments. The loans defaulted and at first the recovery process seemed to be proceeding as normal. The loans were secured on assets which either didn't exist or weren't worth anywhere near the loan amounts, so FC went after the guarantor. Over 3 years and much frustration later, the guarantor was jailed for tax fraud. At this point FC refunded the remaining capital on both loans. If I ignore these repayments (i.e. I assume the loans recovered nothing), my overall recovery rate falls to a bit over 35%.
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happy
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Post by happy on May 8, 2017 21:16:13 GMT
Had around 2.5 years in FC, up to £20k invested at my peak. initially A*,A loans and the occasional B or C very very carefully hand-picked SME loans, no property. Only ever had 3 defaults (all As totaling around 0.4% value of my loan book) All went Pop within a few payments and recovery has been negligible, about 1% over the last 18 months or so. One loan repaying about 50p a year (EDIT: now unlikely to pay anything!) one written off and one occasionally making a token payments whilst dodging winding up orders aplenty so chances of much further recovery are very slim. In hindsight these 3 loans should never have been A loans in the first place and I should never have lent to them either but they were fairly early in my FC journey. Based on this recoery rate I am just glad my default rate was so low. I put my low default rate down to my very strict selection criteria (i.e. almost lending to companies that really didn't need to borrow money in the first place  ) and a focus on A*/A loans however this meant that as time went on and loan quality declined along with the rates virtually no loans met my criteria so the effort became too much and at the new Completely Fixed Rates I simply couldn't justify unsecured lending.... end of! Moved on to property only after fixed rates. Now 99.9% property on which I have had no defaults and I'm gently winding these down as they get near to repayment so hoping for no more defaults before I exit FC. Lifetime defaults as a % of lifetime profit around 5%, Recovery only 1% of total losses |
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Post by gidoppp01 on May 16, 2017 21:42:19 GMT
Having invested 5 years on FC, I managed to get 40% recovery from bad debts. Overall loss after recovery is around 2%, life time return is currently 6.9%.
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Post by longjohn on May 17, 2017 18:19:48 GMT
Three and a half years in and - Bad debts = 15.1% of gross earnings Recoveries = 52% (I'm expecting 82% of recoveries from these with existing payment plans) Fees = 10.5% My overall bad debt is 0.81% which compares favourably with the estimated 2.0% on the statistics page. When taking rubbish down to our local tip I give a little smile to the demolition/recycling company next door. They're now bust with £14.04 of my money and little chance of getting much back. Their personalised number plates might be worth a bob or two though. John Just thought I'd do an update to see what changes in my bad debts have occurred in the last two years. Bad Debts = 13.1% of gross earnings. Recoveries = 39% I've picked up a few non-payers recently. Fees = 11.9% Includes sales as well. On the plus side after FC chased the demolition company through the English courts for a year and got nowhere (English law invalid in Scotland) they got the Scottish court involved and now after another year of faffing about the guarantor's solicitor has indicated that 'he might be willing to talk to FC'. John
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Post by ghostdoggywoofwoof on May 18, 2017 12:09:25 GMT
I wouldn't say English Law is necessarily invalid, but if your are pursuing a debt it ought to be raised in the right jurisdiction. Don't FC have lawyers? (Happy to act for them if they need assistance in Jockland) 
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Post by longjohn on May 19, 2017 15:41:37 GMT
I wouldn't say English Law is necessarily invalid, but if your are pursuing a debt it ought to be raised in the right jurisdiction. Don't FC have lawyers? (Happy to act for them if they need assistance in Jockland)
Perhaps invalid was too strong a word but it revolved around the original English bankruptcy order 'not being served properly' leading to the guarantor applying for a 'set aside' order in a Scottish court. Ultimately the Scottish court dismissed this so then FC went for a new bankruptcy order through a Scottish court. Naturally this has taken a while to issue and serve (properly, one hopes). The company had made 18 payments of 60 (12 before RBR and 6 after). Financials were slightly iffy in that there was only £100k profit on £7m turnover. However there was £1.5m net assets three months before the loan request so no real worries on a £100k loan. Two years later and they were bust owing £500k in 36 CCJ's.
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) and a focus on A*/A loans however this meant that as time went on and loan quality declined along with the rates virtually no loans met my criteria so the effort became too much and at the new 
