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    • Froggitt
    • By Froggitt 14th Jun 17, 5:48 PM
    • 5,781 Posts
    • 3,060 Thanks
    Froggitt
    If it works on the same rules as other ISAs, opt to have the repayments automatically reinvested by them, rather than paid out and reinvested.
    illegitimi non carborundum
    • takesyourchances
    • By takesyourchances 14th Jun 17, 6:25 PM
    • 410 Posts
    • 236 Thanks
    takesyourchances
    With funding circle I was lent to around 137 loans, with 1 default, return rate stated at 7.1%.

    Now I am used to Moneything, Collateral and Ablrate, I feel I want to reduce down funding circle and move my funds across to the other 3 platforms.

    I feel also with 1 default so far with FC, reading here I am very lucky I don't have more! I opened this account when first getting used to P2P but now I prefer platforms like Moneything, Collateral and Ablrate.

    I looked for the first time at the sell option in Funding Circle, I had a small balance and put £200 up for auto-resale and within minutes I now have a cash balance of £263 is it normally that quick to sell out?

    I will use this to start to spread across the other 3 platforms now. I think I would much prefer to completely sell out of funding circle and fund the others so this is a start
    • dekkard
    • By dekkard 14th Jun 17, 6:29 PM
    • 68 Posts
    • 17 Thanks
    dekkard
    With funding circle I was lent to around 137 loans, with 1 default, return rate stated at 7.1%.

    Now I am used to Moneything, Collateral and Ablrate, I feel I want to reduce down funding circle and move my funds across to the other 3 platforms.

    I feel also with 1 default so far with FC, reading here I am very lucky I don't have more! I opened this account when first getting used to P2P but now I prefer platforms like Moneything, Collateral and Ablrate.

    I looked for the first time at the sell option in Funding Circle, I had a small balance and put £200 up for auto-resale and within minutes I now have a cash balance of £263 is it normally that quick to sell out?

    I will use this to start to spread across the other 3 platforms now. I think I would much prefer to completely sell out of funding circle and fund the others so this is a start
    Originally posted by takesyourchances
    Out of interest, did you use Autobid on Funding Circle? With that success rate, I guess not (?)
    Last edited by dekkard; 14-06-2017 at 6:33 PM. Reason: Punctuation
    • takesyourchances
    • By takesyourchances 14th Jun 17, 6:34 PM
    • 410 Posts
    • 236 Thanks
    takesyourchances
    Out of interest, did you use Autobid on Funding Circle. With that success rate, I guess not (?)
    Originally posted by dekkard
    Yes I used autobid, this was the first time selling on funding circle, so thought would try autobid and it was gone within minutes. I put another £100 up there, so will try it now.

    If I could get these funds spread across the other 3 I would be much happier and get out of FC with a reasonable return and apply it to the others.

    Update at £303 cash now, bit more sold typing this.

    That £100 sold very quick too!
    Last edited by takesyourchances; 14-06-2017 at 6:36 PM. Reason: Another update
    • dekkard
    • By dekkard 14th Jun 17, 6:38 PM
    • 68 Posts
    • 17 Thanks
    dekkard
    Yes I used autobid, this was the first time selling on funding circle, so thought would try autobid and it was gone within minutes. I put another £100 up there, so will try it now.

    If I could get these funds spread across the other 3 I would be much happier and get out of FC with a reasonable return and apply it to the others.

    Update at £303 cash now, bit more sold typing this.

    That £100 sold very quick too!
    Originally posted by takesyourchances
    Thanks for your reply. Sorry, I meant, did you use Autobid when you were investing(lending) ?
    • Bazofts Revenge
    • By Bazofts Revenge 14th Jun 17, 7:35 PM
    • 280 Posts
    • 145 Thanks
    Bazofts Revenge
    I was under the impression Assetz Capital now had IF-ISA's sorted out. I opened an account with them but no sign of IF-ISA been available yet. Anyone know if and when it will be available? Might end up going for the SIPP instead.
    Solar PV cost £5760 (15/03/13)
    FIT inc + Electricity saved £3500 (61% Paid back) Tax free
    Last update 30/06/17
    • bigadaj
    • By bigadaj 14th Jun 17, 8:14 PM
    • 9,579 Posts
    • 6,095 Thanks
    bigadaj
    Hi - Question on IFISA P2P reivestments!

    I have a current IFISA with Crowd2Fund that I started this tax year. I have started to get repayments back now. Am i right in thinking that if I reinvest those returns, that those sums have to be added to the ISA allowance total? Even though it is 'recycled' money within the same tax year?
    Originally posted by londonlydia
    Mo, returns within the is a are tax free and don't count to contributions. So you can contribute your full allowance within the tax year, and any income can be reinvested without affecting your total.
    • takesyourchances
    • By takesyourchances 14th Jun 17, 8:16 PM
    • 410 Posts
    • 236 Thanks
    takesyourchances
    Was able to sell another £500 on Funding Circle in a few minutes there, I don't know if it is normally this quick.

    I will transfer this to my bank and then redeploy these funds into Moneything, Albrate and Collateral and start working these into loans on these platforms.
    • takesyourchances
    • By takesyourchances 15th Jun 17, 12:07 AM
    • 410 Posts
    • 236 Thanks
    takesyourchances
    That is £2500 sold out tonight on Funding Circle, I feel better selling out of this platform now to use the funds elsewhere and I have already bought some SM loans on Ablrate and added more to Moneything and Collateral while the FC funds come back to my bank acc.

    I feel that my P2P is more tidy now as I did not like the random loan selections on FC and unsecured loans and have learnt from I opened that account I feel.

    Everything sold really quick so happy with that
  • jamesd
    Why should the FOS be involved? Clearly all the punters who invested in this loan should have "done their research". ... Maybe the FOS will give you your money back, but be careful what you wish for. If you start putting in expensive complaints to the P2P platforms then they might actually decide they have no option but to start hiring professionals to do due diligence.
    Originally posted by Malthusian
    The P2P firm is already required to ensure that their financial promotions are fair, clear and not misleading. That includes not making false representations about a guarantor. Whether knowingly or unknowingly false and whether negligent or not. The FOS gets to be involved because the risk of the loan was misrepresented by the platform.

    In this case I'm having difficulty in seeing how it can be anything other than negligence. Ownership is presumably properly registered at the Land Registry and basic checks of ownership of anything to be used as security or to back a guarantee should be basic routine work by the platforms as part of them making sure that their promotions meet the requirements. If they skip such basic checks they should expect to pay the cost.
  • jamesd
    put £200 up for auto-resale and within minutes I now have a cash balance of £263 is it normally that quick to sell out?
    Originally posted by takesyourchances
    If I recall correctly, yes provided you set a price that autobid will accept. No premium.
    • justme111
    • By justme111 15th Jun 17, 8:14 AM
    • 2,750 Posts
    • 2,638 Thanks
    justme111
    That is £2500 sold out tonight on Funding Circle, I feel better selling out of this platform now to use the funds elsewhere and I have already bought some SM loans on Ablrate and added more to Moneything and Collateral while the FC funds come back to my bank acc.

    I feel that my P2P is more tidy now as I did not like the random loan selections on FC and unsecured loans and have learnt from I opened that account I feel.

    Everything sold really quick so happy with that
    Originally posted by takesyourchances
    Question is whether you feel happy almost all your P2P investment is in property now and far less diversified ( as platforms that you mentioned have far fewer loans). How long have you been on FC for and what was your yearly yield?
    • takesyourchances
    • By takesyourchances 15th Jun 17, 8:41 AM
    • 410 Posts
    • 236 Thanks
    takesyourchances
    Question is whether you feel happy almost all your P2P investment is in property now and far less diversified ( as platforms that you mentioned have far fewer loans). How long have you been on FC for and what was your yearly yield?
    Originally posted by justme111
    I was in FC under a year with one default and a few others coming up with late payments, in interest was down as 7% a year with the default, would of dropped has more happened.

    I felt I was lucky with one default with the amount I have read about and the autobid I was not so comfortable loans being selected blindly after learning more.

    I still have ratesetter which I may keep still with my funds at 5%,

    What I prefer is better quality loans with the other platforms and some of them shorter durations and to keep the funds flowing and be selecting them myself with reading the information and also the P2P forum. I felt with FC there was more problems waiting to happen and more warnings was appearing also with payments late for several months and flags appearing.
    • justme111
    • By justme111 15th Jun 17, 8:53 AM
    • 2,750 Posts
    • 2,638 Thanks
    justme111
    How did you sell ones that were paying late - I believe loans in arrears become unsaleable. Why I am asking - I been on there the same as on all other platforms you mentioned for 5 months and trying to see what fits where.
    • takesyourchances
    • By takesyourchances 15th Jun 17, 10:34 AM
    • 410 Posts
    • 236 Thanks
    takesyourchances
    How did you sell ones that were paying late - I believe loans in arrears become unsaleable. Why I am asking - I been on there the same as on all other platforms you mentioned for 5 months and trying to see what fits where.
    Originally posted by justme111
    I got 2500 out which I am waiting to clear in my bank from FC and I have 74 I can't sell that's one default of 18.68 and the rest will be new flags of late payments. I'll just check and draw whatever if any I can but I got my bulk out so I'm happy.

    With what I've learnt from opening that account i never would of picked many of those loans and for the return as the more experienced posters on here have pointed out there are better options out there for potential higher returns for the risk. So between all of this learning I'm more happy to spread that 2500 across the other 3 I've been investing in and building these platforms up more.

    Hope that helps and this is what here is for
    • justme111
    • By justme111 15th Jun 17, 11:36 AM
    • 2,750 Posts
    • 2,638 Thanks
    justme111
    So 7% was after £74 which could be recovered? I am having fun hand picking loans there for now after initial investment with autobid. I suppose on any platform with let's say 10% interest rate if no more than 1 in 10 loans default irrecoverably one is not going to see loss other than opportunity cost..
    • takesyourchances
    • By takesyourchances 15th Jun 17, 12:30 PM
    • 410 Posts
    • 236 Thanks
    takesyourchances
    So 7% was after £74 which could be recovered? I am having fun hand picking loans there for now after initial investment with autobid. I suppose on any platform with let's say 10% interest rate if no more than 1 in 10 loans default irrecoverably one is not going to see loss other than opportunity cost..
    Originally posted by justme111
    Yes the 7% is after one default of 18.68 the rest of the 74 is flagged but not in default so chance to get more back from this. If I don't I've not lost. The default was an A rated loan.

    I prefer asset backed now at least it gives a better chance than unsecured and platforms that too are more selective of the loan quality they offer. Another interesting blog I read is financial thing and I see in a recent update the guy withdrew from FC and you can read his opinion on FC in his updated blog.

    I will pick up some more on Ablrate sm tonight and work on these 3 platforms when fresh loans appear too.

    I'll keep ratesetter for now as it's easy and my funds are 5% but won't add fresh money to it at the moment and review.

    My plan is to work on continuing to spread across the 10% plus loans as I feel after reading posters here too also the risk taken needs higher returns.

    So far defaults are low across those 3 platforms on FC I'm reading all sorts and more would of hit my rate below 7%.
    Last edited by takesyourchances; 15-06-2017 at 12:32 PM.
    • Malthusian
    • By Malthusian 16th Jun 17, 10:49 AM
    • 2,596 Posts
    • 3,693 Thanks
    Malthusian
    In this case I'm having difficulty in seeing how it can be anything other than negligence. Ownership is presumably properly registered at the Land Registry and basic checks of ownership of anything to be used as security or to back a guarantee should be basic routine work by the platforms as part of them making sure that their promotions meet the requirements. If they skip such basic checks they should expect to pay the cost.
    Originally posted by jamesd
    Agree entirely, it couldn't be more basic.

    Whether the generalist FCA rule on promotions being "clear fair and not misleading" is wide enough to cover this situation is open to interpretation. Funding Circle can point to its terms & conditions which say (my emphasis):

    1.3 Funding Circle gives each loan a risk band classification at the time a loan request is processed, which is based on information included in the borrower's application and the results of an online check made against records held by credit reference agencies.
    (note that it does not say that they will do Land Registry checks on the information provided by the borrower, or any other due diligence checks beyond the Experian report)

    1.4 While Funding Circle adds value to the credit analysis as part of our loan application review and assessment processes, the provision of a risk band classification is intended to be informative only and an investor must form its own opinion regarding the creditworthiness of a borrower and undertake its own research, analysis and assessment of each borrower for each loan and, where appropriate, seek its own independent financial advice.

    1.5 Save in certain specified circumstances, Funding Circle does not edit the information submitted or uploaded by borrowers which it then makes available to prospective investors via the Funding Circle platform and, therefore, we cannot guarantee its accuracy. Accordingly, we accept no responsibility or liability for the accuracy of the information provided by borrowers to prospective investors or the risk band classifications.
    Now, we all know nobody reads terms and conditions, and furthermore a firm cannot escape its obligations under the FCA's Conduct of Business Rules by saying in its terms & conditions that it doesn't have to comply with the FCA's Conduct of Business Rules.

    But equally the FCA's rule on financial promotions being "clear, fair and not misleading" is a deliberately broad rule and therefore open to interpretation. Is it clear that borrowers can't assume that the information given by the borrowers is true and must do their own due diligence? Abundantly, from FC's terms & conditions - it may be small print but it's very clear small print. Is it fair? Well, if you want 10% per annum returns you have to accept some risks. Is it misleading? Yes, but it was the borrower doing the misleading. If a fund manager makes misleading statements on its fact sheet then my complaint is against the fund manager, not Hargreaves Lansdown or Trustnet because I read the misleading promotion on their website. Funding Circle will argue that it is only acting as a conduit.
    • Adam1991
    • By Adam1991 18th Jun 17, 10:19 PM
    • 1 Posts
    • 0 Thanks
    Adam1991
    HI
    I have a help to buy ISA

    if I do a P2P on let's say landbay
    would I loose the help to buy ISA become void
    as the help to buy ISA is for first time buyers only
    does joining and investing in a P2P affect that ?
  • jamesd
    Is it misleading? Yes, but it was the borrower doing the misleading.... Funding Circle will argue that it is only acting as a conduit.
    Originally posted by Malthusian
    It was FC's financial promotion to prospective lenders and FC is responsible for ensuring that those are clear fair and not misleading. The borrower may have tried to mislead FC but it wasn't the borrower's financial promotion.

    Well worth this one going to the FOS if that's what it takes.
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