Peer-to-peer lending sites: MSE guide discussion

6391mb

As far as I'm aware, this company (Collateral) quietly allowed their FCA membership to lapse at the end of January.

No legal expert myself but as many investors actually invested with them when they were FCA members it will be interesting to see what action the FCA takes. Unfortunately it probably will be zero but there's hope I suppose.

Fatbritabroad

I've just messaged ablrate suggesting a well timed comment on the current situation may put people's minds at risk. Is there not a danger if everyone stops investing or pulls there money of a self fulfilling prophecy

fun4everyone

takesyourchances wrote: »

Yes their morning update was useless, looks so far like used to buy more time delaying us all...............................It is despicable behaviour for any business with their clients.

Totally agree. God knows what they are up to. An announcement there will be an announcement lol - completely obvious it's just stalling for time.

keyboardworrier wrote: »

I agree, this is terrible behaviour from a platform which I trusted quite a lot.

I also thought they were trustworthy I have to admit. I am glad I'm not the only one!

My concern now is loans that are repaying and interest, the money will surely go to the Collateral client account which could lead to us being hurt that way.

Unless there was a major fraud I think loans that are drawn down and active SHOULD be ok (untested before but reads that way to me).

I am mostly concerned about cash on the account, of which I had a little, and unfilled loans not drawn down. There were a LOT of these iirc.

takesyourchances wrote: »

Even if they rest of my P2P went fine from here in left at present levels, it would take several years to recoup this mess if this is lost. I am classing it as lost now, as I cannot even see a balance, so it is as good as that at the moment until this develops and the truth gets out which it will.

I hold out hope and belief we will get something but its going to be years down the line so might as well write it off as lost now agreed.

takesyourchances

6391mb wrote: »

As far as I'm aware, this company (Collateral) quietly allowed their FCA membership to lapse at the end of January.

No legal expert myself but as many investors actually invested with them when they were FCA members it will be interesting to see what action the FCA takes. Unfortunately it probably will be zero but there's hope I suppose.

I read that on the P2P forum, I am not a member but been reading with interest the detailed posts.

keyboardworrier

I've just remembered that Collateral had various valuable items (Gold, diamonds etc) which money was loaned against in safety deposit boxes controlled by them. It's going to be interesting to see what happens to said items.

Also I've just checked through various Collateral emails and the FCA regulated blurb at the bottom disappeared in the later ones.

takesyourchances

Fatbritabroad wrote: »

I've just messaged ablrate suggesting a well timed comment on the current situation may put people's minds at risk. Is there not a danger if everyone stops investing or pulls there money of a self fulfilling prophecy

Good idea, Ablrate became my preference platform out of the trio of Collateral, MT and Ablrate. I have a balance just over 5k there and I do like the platform. The problem is a hit like this with Collateral has rocked the whole boat now and will have people questioning their P2P portfolios as a whole. I don't think I would of invested in todays loan with fresh money on Ablrate as property and not what I would of been after, but my P2P brakes are on with this Collateral development and others are the same which will have a knock on effect.

economic

Does anyone know whether a fraud team or the FCA are looking into the matter? I guess FCA would not want anything to do with them but there must be an official team out there who is looking into it?

It is very strange that no one at all picked up on the fact they are not FCA regulated anymore until these issues. Seems like it was well hidden by Collateral most likely on purpose. This smells at least some level of fraud and i wouldn't be surprised it this becomes a criminal matter.

As i have been saying, its wise to completely derisk from P2P, too much risks, hassle, uncertainty and especially now with what is going on with Collateral. You are all experiencing what liquidity risk feels like.

economic

I have a gut feeling MT will be next to go down....

takesyourchances

fun4everyone wrote: »

I hold out hope and belief we will get something but its going to be years down the line so might as well write it off as lost now agreed.

Hopefully, even it it does take years to come through with something.

I can't see anything else to do but write it off as a loss when we have no access and placed in this position. It's a tough one to take on the chin, but even if the rest of my P2P was incident free I reckon it would take around 4 years interest on what I have left in P2P to see this loss back.

A whole platform down and your balance with it is a huge hit, much worse than yesterdays MT loan defaults which has become irrelevant to me at the moment. So I really have to question why carry on with P2P with that sort of timescale to break even and that is not accounting for future problems.

I will certainly be re-directing some money to my long term S&S ISA with withdrawing interest and repayments and any selling reducing I may do.

takesyourchances

economic wrote: »

Does anyone know whether a fraud team or the FCA are looking into the matter? I guess FCA would not want anything to do with them but there must be an official team out there who is looking into it?

It is very strange that no one at all picked up on the fact they are not FCA regulated anymore until these issues. Seems like it was well hidden by Collateral most likely on purpose. This smells at least some level of fraud and i wouldn't be surprised it this becomes a criminal matter.

As i have been saying, its wise to completely derisk from P2P, too much risks, hassle, uncertainty and especially now with what is going on with Collateral. You are all experiencing what liquidity risk feels like.

I do smell a rat here, this type of thing does not develop overnight. They may of tried to jump to the next level and sunk themselves and investors with it. It'll come out.

Read you were running down ratesetter. I have been too, I have been thinking today to sell out and take the fee hit, it is more cash back to re-invest in stocks and shares and leave long term. With a platform loss, the risks to continue at the sums I have invested does not stack up.

Yes, this is hard liquidity risk in real time. I am level headed enough to take it on the chin I knew there was risks and worse can happen in life. I think just got to adapt to the situation.