Discussion
There was a thread on this a short while ago - I seem to recall some were having trouble getting access to their funds. The website gives no indication of problems - what's happening/what's the underlying issue? Are other P2P affected?
A curious bystander by the way, rather than an investor.
A curious bystander by the way, rather than an investor.
anonymous said:
[redacted]
I was contacted by a reporter who claims they are doing a piece for a documentary to be aired in the near future. My advice would be to sell everything you can on the SM and brace yourself for rest. More than £50M now in defaults & Recoveries. They are going to be forced to accept some losses imminently, and the new money will stop flowing. Can't help thinking it will unravel very quickly from there.
Trustpilot and the likes are getting hit with a tidal wave of people demanding some action, yet the only action Lendy are taking is pulling as many reviews as they can.
It looks to me like the RICS valuations were rigged, with many loans turning out to be in excess of 100% LTV.
It's not going to be pretty.
Darkslider said:
As a current borrower with Zopa this concerns me, is the whole P2P house of cards about to come crashing down? What are the implications for borrowers if this is the case?
Most of the better p2p sites have info readily available on their current portfolio about any concerns. Ratesetter have recently updated their contingency fund provision to accommodate a slight increase in loan defaults but it's still well in their safe zone. There's nothing to suggest the p2p market is going tits up because of one poor lender.I think you have to keep aware and reading up and only put at risk what you can afford to lose.
I pulled out of zopa last year and am currently only on ratesetter, 3.1% on the rolling market as we speak with fairly instant access
Darkslider said:
Badda said:
Oof, I wonder what the 'contagion' risk is for other P2Ps?
As a current borrower with Zopa this concerns me, is the whole P2P house of cards about to come crashing down? What are the implications for borrowers if this is the case?I’ve been quite vocal on PH over the last decade regarding my disdain for P2P. Many of the platforms are just badly run enterprises by people of dubious ability and the whole sector is based around the deliberate mispricing of risk and smoke and mirror data to attract people desperate for yield. The lax regulation and being blocked from the FSCS should be a warning to all involved that they are not being paid anywhere near enough return for the money they are risking.
These firms really don’t scrutinise who they lend to beyond the most basic of box ticking exercises. They don’t hold anywhere near enough reserves to cover defaults and they offer terrible, terrible rates to people who think they are partaking in something akin to bank lending, something the platforms are incredibly keen to foster but in reality the lenders are also risking capital.
Mispricing risk is bad enough but to do so deliberately as a core function of your business model is corrupt.
These firms really don’t scrutinise who they lend to beyond the most basic of box ticking exercises. They don’t hold anywhere near enough reserves to cover defaults and they offer terrible, terrible rates to people who think they are partaking in something akin to bank lending, something the platforms are incredibly keen to foster but in reality the lenders are also risking capital.
Mispricing risk is bad enough but to do so deliberately as a core function of your business model is corrupt.
I assume the administrators wind down all the loan agreements over time if they cannot find another firm to transfer them all to? But i’d hazard that by the time any loans that can be repaid are and the costs applied there won’t be anything going back towards the lenders. Modern administrators rely very much on the FSCS pool to pay out the client while any funds in the business find fees to absorb them.
https://support.lendy.co.uk/hc/en-us/articles/1150...
https://uk.trustpilot.com/review/www.lendy.co.uk
My wild and random guess is that Baker Tilly will call in all loans, get the book all into default, sell on the debts and deliver an invoice that matches what is received.
https://support.lendy.co.uk/hc/en-us/articles/1150...
https://uk.trustpilot.com/review/www.lendy.co.uk
My wild and random guess is that Baker Tilly will call in all loans, get the book all into default, sell on the debts and deliver an invoice that matches what is received.
Edited by DonkeyApple on Monday 27th August 19:27
Edited by DonkeyApple on Monday 27th August 19:30
sidicks said:
EddieSteadyGo said:
Grim reading
Indeed, but as DA said above, there were plenty of people warning that these things weren't as good as they looked to be, and were often shouted down by those who had achieved good returns in the past.Gassing Station | Finance | Top of Page | What's New | My Stuff