ashtondav
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Post by ashtondav on Sept 18, 2019 17:51:00 GMT
Of course borrowers love it. Easy cash, few checks, go into liquidation and walk away. What's not to like? FC are as tight as two coats of paint compared to Funding Secure! Returns on FC are intergalactic compared to the incompetence of FS who not only lend to the financially incontinent but also serial fraudsters. FC merely got caught up in their own IPO hype. They’ve got that sorted now - FS haven’t! p2p - if it could be classed as misselling it would be, misselling.
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ashtondav
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Post by ashtondav on Sept 18, 2019 15:03:16 GMT
But higher risk. Back in 2008 VC Trusts fell about 60%. My Zopa portfolio went up 6%.
But that was when Zopa used to meet its return estimates. Sadly not now the case.
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ashtondav
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Post by ashtondav on Sept 18, 2019 14:54:11 GMT
Whether things have improved or deteriorated is another (valid) matter. the fact remains that if you are running down eventually you will be left with only late payers and defaults. The good ones will have completed. Say your portfolio is 20 loans ten of which are good, ten of which are defaults. As the final good one repays you will be left with the ten defaults. Your returns will decrease all the way down. This is why p2p is like hotel California - you can check out any time you like, but you can never leave because you will always have a rump of defaults, probably trickling recovery repayments. I agree returns have been unacceptable which I why I too am withdrawing repayments.
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ashtondav
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Post by ashtondav on Sept 18, 2019 14:51:46 GMT
Whether things have improved or deteriorated is another (valid) matter.
the fact remains that if you are running down eventually you will be left with only late payers and defaults. The good ones will have completed.
Say your portfolio is 20 loans ten of which are good, ten of which are defaults. As the final good one repays you will be left with the ten defaults. Your returns will decrease all the way down.
I agree returns have been unacceptable which I why I too am withdrawing repayments.
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ashtondav
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Post by ashtondav on Sept 18, 2019 12:03:19 GMT
I seem to have more new defaults every time I log on. July - 74% of income (earnings plus recoveries) lost to new defaults. August 95%. September so far - 154%!! Yes, really!. I've been running down for nearly 18 months now (begrudge them a selling fee to get rid of what they lumbered me with) so I would have expected an eventual drying up of new defaults but they keep coming. I am greatly irritated by the weekly updates which continue to advertise matching at rates way above those delivered to me, consistently and for a sustained period. I am also greatly irritated by the banner they keep putting on my Statements page - "Looks like you've had some defaults - don't worry"! I get defaults every month and I do worry. I haven't so far accepted their invitation to a pointless chat with their Customer Service Team (are they going to compensate me?) nor will I expend my pay-by-the-megabyte bandwidth to watch what is no doubt a load of patronising and placatory clap-trap from Andrew Lawson. I was very happy with Zopa 8 years ago, but not now. If you’re running down at some stage you will be left only with defaults and lates, as all your “good loans” will have paid back. So it’s no surprise. I’m in the same situation. you only get anywhere near the promoted rates if you invest and then re-invest your capital and interest over the long term. You are not being invested in loans at the advertised rate that are emailed to you. Simple as that.
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ashtondav
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Post by ashtondav on Sept 16, 2019 17:08:35 GMT
But under the new system you will be able to set a 9% rate, I guess it’s just debatable how often it will be matched.
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ashtondav
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Post by ashtondav on Sept 16, 2019 17:05:15 GMT
On page 1 of this thread only 8 sellers registered in August and only one so far in September.
It’s slooooooowing, all right, and if this board is representative of the lender base (probably more negative) then the legendary 120 days will not be reached.
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ashtondav
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Post by ashtondav on Sept 12, 2019 16:06:08 GMT
Over the last two years, since I decided to reduce my exposure to P2P substantially, I have managed down my FC from £30k to now some £1600 after my May sale closed out.
This is now around a third of my total net interest received, so I would be relaxed to switch on lending again. Except I don't want to get landed with a set of pre-IPO dud loans.
You probably wouldn’t. They’re being very careful not to land new lenders with the smelly cohorts folks here are selling. Selling takes a long time because the same reason people are selling out (fear of duds) is the same reason new lenders aren’t being allocated many of them. Thankfully not many new lenders are members of this forum, because after reading 50 pages of this thread they wouldn’t join up and the loans would NEVER sell.
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ashtondav
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Post by ashtondav on Sept 12, 2019 12:09:05 GMT
Well the good news for sale time is that sales are slowing, page 1 shows only 5 sellers (so far) in August. Maybe we’re approaching peak selling time? Or running out of forum members with money tied up in FC? True. But still good news for the sellers as it looks unlikely that the timescale will hit the magical 120 days.
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ashtondav
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Post by ashtondav on Sept 11, 2019 19:22:34 GMT
Well the good news for sale time is that sales are slowing, page 1 shows only 5 sellers (so far) in August. Maybe we’re approaching peak selling time?
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ashtondav
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Post by ashtondav on Sept 9, 2019 11:54:28 GMT
Provision Fund?
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ashtondav
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Post by ashtondav on Sept 9, 2019 11:51:08 GMT
Instant access 2% on investments up to £20k would have me reaching for my cheque book. Not interested below Marcus 1.5%.
The only differentiator for a new entrant now is interest rate!
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ashtondav
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Post by ashtondav on Sept 9, 2019 11:46:38 GMT
I am exiting RS (since June '18) and seeing my balance dropping nicely courtesy of the ever-reliable early repayments. I just don't want to eek it out for the estimated three further years before my 5 year loans all unavoidably pay down in the normal way due to the sub £10 loan issue. It occurs to me that since my sub-£10 loans are less than the fee of 1.5% of my realisable (>£10) loans, I could make then an offer to waiver some or all of the fee and just keep the unrealisable loans as 'asets' for themselves. Now can RS under FCA rules (etc) hold loans?
If this were possible I might do this.
You may be right but I have to say that despite the irritation RS is the most lucrative of my “black box” accounts. Zopa, AC, FC have all disappointed but RS chugs along, For now, delivering 6.1%. Only bettered by the much younger LWorks. I do admit the AC access accounts are also reassuring, and of course have asset backing and a PF (however enigmatic and mysterious it is). i’ll jump At the first sign of unemployment increasing for a couple of months. Until then I just reinvest at 6% and watch the returns roll in, and as long as that happens I don’t give a fig about irritating emails and a day glo website
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ashtondav
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Post by ashtondav on Sept 8, 2019 15:56:16 GMT
In the new products you can set your own rates and withdraw repayments free by cancelling orders. If you have loans in the legacy products by the cut off date you can continue to invest in them. For those of us who are sophisticated lenders not much changes. For the dumb money, they will increasingly get invested at the low RS “going rate”.
if I can no longer get 6% in 5 year or 4% in access I’m off to LW for their offer, although I’m wary of their size compared to RS. On the other hand RS has some horrid legacy dodgy loans companies on their books.
Very few p2p platforms smell of roses
FC abandoned their traditional credit checking to ramp up the loan value coming up to IPO. Legacy loans now taking almost 4 months to sell Collateral and Lendy have exploded Zopa hasn't delivered estimated rates for many investors FS has been the subject of several (many?)frauds AC bunged lenders into too few loans in some of its legacy accounts and has an impenetrable PF
and theyre just the ones ive tried. Well I did avoid Coll and Lendy TBH.
Its a new industry and many of its leading lights had no experience of p2p. My most satisfactory years were 2005 - 2010 with Zopa. Since then my faith has been tested.
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ashtondav
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Post by ashtondav on Sept 8, 2019 8:03:35 GMT
Hoping for a nibble on my 6%ers later in the month, or early October.
Or will everything change with the new products?
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