ashtondav
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Post by ashtondav on Sept 29, 2019 10:26:30 GMT
Lack of confidence in the performance of pre 2019 loans and SME IT and p2p global deserting the platform, reducing demand.
FC’s only chance of restoring investor confidence is to deliver on the new lender rates, becoming more selective on the quality of borrowers, hence the reduced growth rate from 40% to 20%.
We will know more when they make their imminent announcement.
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ashtondav
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Post by ashtondav on Sept 29, 2019 7:45:41 GMT
I think retail lenders will become less important for FC compared to institutions who better understand risk and reward, so iPads and vouchers will be irrelevant. You only have to look at this thread to understand the cost, customer service and PR issues of dealing with large numbers of fickle small punters. Sadly p2p will become much less p2p, and perhaps it was never a viable business model. Regardless, the individual lender will not be particularly important.
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ashtondav
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Post by ashtondav on Sept 28, 2019 7:55:47 GMT
Sale completed, £20k, email received at 06:30. Combined with loans completed over the 120 days, which I left in situ as I was paranoid that it would cancel the sale, I have just withdrawn 94.3% of my balance. Return is now 2.8%, likely to drop close to zero after the remaining £1.5k of stinky loans fester. The FC delay on 31/05 was 51 days when I started the sale and that seemed bad enough. I can't believe it has actually taken 120 days. This has caused me some major stress and I've been forced to borrow money for the purpose that the FC cash was intended for. I know many would say I should have been aware that selling times could vary but I wasn't. I sold £10k in 2018 and it went through immediately. At that point, my guard came down as I had tested every aspect of FC that I intended to use. I actually became an advocate for FC and recommended them to many people. Needless to say, that advice has now been reversed. I can honestly say I wish I had never heard of FC. Good luck to all and huge thanks to Criston and all contributors to this board, it has been invaluable. Given what you say you should never have lent on any p2p platform. Hopefully the FCA will tighten rules so the financially naive and/or unwary will not be able to lend. I suspect there are many lenders like you, drawn to p2p because government policy is raping savers.
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ashtondav
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Post by ashtondav on Sept 27, 2019 7:16:03 GMT
Now here is a thought since 28 July I've been able to get 10% of my portfolio out in repayments. Assuming a similar figure for everyone trying to get funds out and lets say 1000 people, and assuming an average investment of £25,000 possibly low but if someone corrects me I'll redo the calculation. so per person that's £2,500 not reinvested in 2 months or £5,000 over the 120 days so that's £5 Million out of circulation which is enough to pay off 1/5 of the queued loans, in effect this is becoming a self fulfilling prophesy, as more people hear about this long time to get at finds more join the queue to sell, thus reducing the funds available to buy new loans and old loans for sale thus making the queue longer, thus more people want out. is it this simple or am I living in a different reality You’re in a different reality. Look at page 1 of this thread and you will see that the sales volume is slowing. Fast. About 40 in June, single figures August and September.
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ashtondav
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Post by ashtondav on Sept 25, 2019 16:46:17 GMT
FC need bombarding from everyone to show their concerns, especially if the 'automation' of the 120 day rule has not been corrected. This is the series of my emails. My Email
My loan sale is in the queue, which is currently 117 days long. Can you reassure me that the condition 10.6 will no longer apply & my loans will not be removed after 120 days. FC Response.We’re reviewing the functionality of our secondary market to try to ensure the best possible outcomes for customers. Our terms and conditions state that loan parts put up for sale will be removed from the queue if they don't sell within 120 days, however, we will temporarily pause this condition while that process continues. My Reply.
Since the status of processing loans was changed, some time back, 'Loans for Sale' are no longer listed & do not exist. There is just an 'estimated funds for sale' figure shown. Therefore, if ever it gets to that point, I dispute FC choosing 'Loans for Sale' to be removed, as they do not exist. FC Response
We launched an improvement to the sale element; whereby the loan parts are chosen to be sold at the point an investor reaches the top of the sale queue, rather than at the point of their the initial request. This should therefore lead to sales completing as close to the requested amount as possible. Therefore your loan parts will no longer show as 'for sale', they will now show as 'live' and will be selected to sell once your account reaches the top of the sale queue; at this point they will be listed as 'for sale'. My Reply.
My point is, that there is not any individual loans showing, that would have been for sale up to 120 days. The original 120 day rule was in the days of 'self select' & was intended for those trying to exploit their position. The rule should be removed once & for all, as this no longer applies. My sale is just a normal sale & the rule should not be used for your company to try & reduce the ever increasing waiting time. I realise why I am having to wait & I will wait as long as it takes, but this ruling should be abolished now. No reply from FC yet.
Oh for goodness sake.
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ashtondav
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Post by ashtondav on Sept 25, 2019 15:19:01 GMT
I can’t see them enforcing the 120 day rule, it would be the beginning of the end of them. It would hit a lot more news outlets than there current difficulties, leading to many more lenders wanting out and virtually no new lenders. At the moment many lenders will be blissfully unaware of any trouble, and happily leaving their money where it is. I was one of those until about 3 weeks ago when I contacted FC to ask them to transfer my loans into an ISA. I was told they couldn’t transfer, I’d need to sell my existing loans and then buy new loans in the ISA. So I put my loans up for sale, expecting them to be sold in a day or two. When they hadn’t sold after a week, I googled FC selling times and found this thread. That was the first I knew about a problem. I suspect the bulk of FC lenders don’t know about the problem. The last thing FC wants to do is publicise the issue and cause a tidal wave of people anting out, something that would happen if they enforced the 120 day rule. That's exactly my experience. I had previously no intention of taking out funds, but the requirement to sell from classic to buy in ISA alerted me to the increasing sell time to the point that I no longer want to invest in the ISA.
It also means it is difficult to make full use of the ISA. If it takes 120+ days to sell from classic then thats four months of lost ISA allowance. There’s no tidal wave now. Look at logged sales on page1 for August and September. The tidal wave was a couple of months ago.
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ashtondav
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Post by ashtondav on Sept 23, 2019 9:15:42 GMT
FC - wouldn’t have the cojones
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ashtondav
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Post by ashtondav on Sept 23, 2019 7:15:42 GMT
...seen on another forum
Hmmm, lending dosh to a foreign student.
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ashtondav
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Post by ashtondav on Sept 23, 2019 7:05:14 GMT
It is demoralising. I'm on day 113 .was hoping I'd be celebrating tonight. Crazy. Celebrating with my own money Maybe go for the quick access accounts offered by the likes of LW and AC?
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ashtondav
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Post by ashtondav on Sept 21, 2019 9:28:46 GMT
the weekly emails over the last year or so seem to indicate monthly lending stable at about £80M. No more growth for Zopa p2p? Hence the banking initiative.
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ashtondav
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Post by ashtondav on Sept 21, 2019 9:26:21 GMT
4.4% is pretty damned impressive in a near zero interest rate world!
Of course compared to predicted returns at time of investment, not damned impressive!
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ashtondav
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Post by ashtondav on Sept 20, 2019 10:34:06 GMT
P2p global (now pollen street) also ditched FC loans after underperformance.
Two big sources of capital have dried up suddenly.
On the plus side page 1 shows only 8 sellers in August and two month to date September, so selling pressure is easing if this forum is representative of the whole universe of lenders.
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ashtondav
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Post by ashtondav on Sept 20, 2019 6:59:33 GMT
RS has delivered 6%pa far more consistently and reliably than my other “near” black box accounts, and I am delighted with that result over the last few years. FC, for example, initially estimated 7% - now nearer 4%. Zopa+ estimated 6%+ - my wife has achieved 2.6%. As for (non black box) FS - freaking disaster, probably worse than collateral punters will end up with.
Should I be unable to achieve c6%pa I will move on, probably to LW. Until then they can d1ck about with the interface, website, colour scheme and product range as much as they want.
Yours sincerely
6%
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ashtondav
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Post by ashtondav on Sept 19, 2019 13:01:45 GMT
...has deserted p2p and changed its name to Pollen Street Secured Lending plc.
Well that should help performance, together with ditching FC as a platform!
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ashtondav
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Post by ashtondav on Sept 19, 2019 10:32:59 GMT
The key part:
“The normal lifespan of these investments should be the length of the initial loan period,” he warned. “If investors try to fight that by buying and selling mid-loan, they will sometimes get caught out."
Mr Faulkner said he expected it would take months for Funding Circle's liquidity crisis to ease.
I’m surprised FS didn’t get a mention. No chance of getting anything out of them. FC - a bed of roses in comparison!
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