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Post by valerieb on Aug 21, 2017 8:20:13 GMT
Describing this as 'an exciting new lending experience' just about sums up what's wrong with FC for me. The great withdrawal continues; pity about those zombie loans paying back 1p every few months, not to mention everyone's favourite, the short term London loan - I'd even stretched to £60 on that one - reckless.
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Post by wiseclerk on Aug 21, 2017 8:21:29 GMT
Wow that's a lot of changes announced together: - no more manual bidding (effective Sept. 18th)
- changed rates (effective August 30th)
- no more fees on secondary market (effective today)
- no more discounts or premiums on secondary market (effective today?)
- when you sell, you cannot directly influence which loans you sell, only what amount
Other p2p lending services took the step from manual bididng to autoinvest only (and at least one partly allowed more selection lateron again)
It will be interesting to see how this pans out for FC.
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Post by spiker on Aug 21, 2017 8:22:56 GMT
Thats me fully sold out
30k dumped at 0%
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Post by grahamreeds on Aug 21, 2017 8:23:54 GMT
Woah. 59 days left on SM for sale! They have got rid of that silly 14 day rule.
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IFISAcava
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Post by IFISAcava on Aug 21, 2017 8:26:48 GMT
Wow that's a lot of changes announced together: - no more manual bidding (effective Sept. 18th)
- changed rates (effective August 30th)
- no more fees on secondary market (effective today)
- no more discounts or premiums on secondary market (effective today?)
- when you sell, you cannot directly influence which loans you sell, only what amount
Other p2p lending services took the step form manual bididng to autoinvest only (and at least one partly allowed more selection lateron again)
It will be intersting to see how this pans out for FC.
still able to set discounts/premia, today at least
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blender
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Post by blender on Aug 21, 2017 8:29:50 GMT
Wow that's a lot of changes announced together: - no more manual bidding (effective Sept. 18th)
- changed rates (effective August 30th)
- no more fees on secondary market (effective today)
- no more discounts or premiums on secondary market (effective today?) 18th Sept I think
- when you sell, you cannot directly influence which loans you sell, only what amount
Other p2p lending services took the step form manual bididng to autoinvest only (and at least one partly allowed more selection lateron again)
It will be intersting to see how this pans out for FC.
Please see above. I am selling my short-life property loans at par, and will re-think after 18th.
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jayjay
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Post by jayjay on Aug 21, 2017 8:33:33 GMT
Wow that's a lot of changes announced together: - no more manual bidding (effective Sept. 18th)
- changed rates (effective August 30th)
- no more fees on secondary market (effective today)
- no more discounts or premiums on secondary market (effective today?) 18th Sept I think
- when you sell, you cannot directly influence which loans you sell, only what amount
Other p2p lending services took the step form manual bididng to autoinvest only (and at least one partly allowed more selection lateron again)
It will be intersting to see how this pans out for FC.
Please see above. I am selling my short-life property loans at par, and will re-think after 18th. Manual selling might be surviving after 18 Sep if you don't choose a portfolio option. That is my current interpretation. So long property might be good to hold until 2 months with a captive audience to buy at the end (No premiums though but also no sale fees).
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IFISAcava
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Post by IFISAcava on Aug 21, 2017 8:35:19 GMT
Unlike others, this actually makes me more likely to use FC. i think time spent managing money on other platforms (eg Lendy, MT, AC, FS) is better rewarded than time spent on FC. So a target 7.5% with no need for much management time, no selling fees + diversification away from property, held within an IFISA, will fill a niche in my portfolio.
After all, 7.5% in an ISA is equivalent of 13.6% outside an ISA for a 45% taxpayer. And 13.6% takes some getting.
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jaswells
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Post by jaswells on Aug 21, 2017 8:44:23 GMT
I agree , this will make me favour FC more. I have never got on well with their secondary market. I have always sensed i'm being conned somewhere along the way and felt the time and reward ratio was not healthy. Autobid has been a farce for years. With the sheer scale of FC and the number of loans they deal with this seems a good move.
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treeman
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Post by treeman on Aug 21, 2017 8:58:10 GMT
Well, no fees to escape - guess they had to allow a no penalty exit given the massive changes.
That's it for me too ...........
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Post by valerieb on Aug 21, 2017 8:59:25 GMT
Contrary to everyone else on this forum, I think this is a great move. I was previously an FC investor and bailed because it was too time consuming to manage. I moved my cash into FCIF. If people on this forum calculated their earnings / hour, I question how strong all of the returns really are. I will now likely return as an FC investor because: - It's a level playing field for all investors - no more concerns that autobidders are picking up the
 . I can fire and forget. - Maximum loan parts are now £100 on autobid - there was an issue before for larger investors where loan parts would get purchase in enormous chunks and therefore couldn't be sold.
- There is no charge for liquidity - the 0.25% selling fee has been abolished.
- FC's average return has been strong over the years and their model is somewhat proven - therefore investors can expect to achieve this return, all other things remaining equal.
I will be investing in the higher risk / return loan bucket if I do return.
Yes, you make some valid points and obviously represent the type of investor FC wishes to attract and retain. Fair enough - you get a better return than from most mainstream investments and little time or effort are involved. For me, having come to P2P with little financial knowledge, I've learnt so much about investment over the last 6 years, initially from reading other more experienced investors' questions and comments on FC offerings and then from following this forum. The returns on FC were great for the first few years but, yes, it took a lot of time studying loan details and being logged on for the last few minutes of bidding to achieve the best rates. But, apart from being financially rewarding, it was also fun and became an enthralling hobby. Now I feel I have enough knowledge to make my own decisions and seriously doubt whether FC's new offering will deliver better results. It will be interesting to see what rates are actually achieved on these new accounts; personally I would have more faith in the auto-invest accounts on AC where at least the loans on offer are better secured and there is a provision fund to contribute towards covering defaults.
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acky
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Post by acky on Aug 21, 2017 9:01:53 GMT
Please see above. I am selling my short-life property loans at par, and will re-think after 18th. Manual selling might be surviving after 18 Sep if you don't choose a portfolio option. That is my current interpretation. So long property might be good to hold until 2 months with a captive audience to buy at the end (No premiums though but also no sale fees). It's not my interpretation that manual selling will survive - see following extracts from their Q&A: On and after 18th September: Any remaining loan parts listed for sale at a premium or discount will be delisted and the option to sell loan parts individually will be withdrawn. The Loan Request (where you can bid on individual loans and ask borrowers questions) and Loan Parts (where you buy individual loans from other investors) pages will be withdrawn on 18th September.
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sl75
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Post by sl75 on Aug 21, 2017 9:03:23 GMT
Missed this bit: A simpler selling process
Just tell us how much you’d like to withdraw and you can sell a selection of your loan parts directly to other investors. The option to sell individual loan parts and set a premium or discount will be removed.
Oh dear "A selection" implies you get to select. That's not what they mean is it? If I go into a supermarket and buy a "selection" of chocolates pre-packaged in a box, I don't get to select the specific chocolates inside. When I leave the box on the table of an office tea-room, lots of people will "select" the chocolate(s) they want to eat - in some cases simply by grabbing whatever first comes to hand. This will be much the same - your automated agent creates a "selection" of loan parts to sell, and sends the "box" to the SM (like the office tea-room). Hungry autobid agents then select the loan parts they require from that "box", and before you know it the box is empty. If there are a few flavours of chocolates that nobody much likes, they'll just go stale in the corner, as there are always people bringing in new selection boxes including everyone's favourites!
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Post by gadget on Aug 21, 2017 9:04:42 GMT
I think this has been the direction of travel for a while now but i'm still a bit shocked. It's basically the final end of the P2P model. Of the big guns FC has always seemed a bit of a holdout to the original ideals: no provision fund, lender choice etc.
I can see why it makes sense from their view as a business. Deal just with big institutions. Funnel money to low return loans. Free customer service reps from dealing with small fry activist investors complaining about losses.
What's particularly galling is rather than be honest about their reasoning they've let the PR folks run wild: "We’re launching an exciting new lending experience", "improved and upgraded version of our existing Autobid and Autosell lending tools". Just admit you can't be bothered with activist investors and cut the bull.
I've been withdrawing funds to make it available for the FC ISA when it becomes live but we'll have to see if i still want to.
Either way it's clearly no longer P2P. If i do stay invested it'll be treating it as just an SME bond fund. I enjoyed it whilst it lasted but at least now i'll have an extra hour or so a week to waste in other ways on the internet...
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jayjay
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Post by jayjay on Aug 21, 2017 9:07:53 GMT
Manual selling might be surviving after 18 Sep if you don't choose a portfolio option. That is my current interpretation. So long property might be good to hold until 2 months with a captive audience to buy at the end (No premiums though but also no sale fees). It's not my interpretation that manual selling will survive - see following extracts from their Q&A: On and after 18th September: Any remaining loan parts listed for sale at a premium or discount will be delisted and the option to sell loan parts individually will be withdrawn. The Loan Request (where you can bid on individual loans and ask borrowers questions) and Loan Parts (where you buy individual loans from other investors) pages will be withdrawn on 18th September.
Thanks I had not seen that more explicit wording. It is still altogether not clear what happens to those lenders who have not chosen a lending style and it raises loads of quirky transitional thoughts.
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. I can fire and forget.
