Peer-to-peer lending sites: MSE guide discussion

choochootrain

Why has this happened?
The Company was operating in the belief that it was authorised and regulated by the
Financial Conduct Authority under interim permission. It has transpired that this is not the
case and consequently the Company has ceased lending.

I have lent money via the Collateral platform do I need to do anything?
No. Subject to the borrower continuing to make payments of interest and capital those will
be returned to you in accordance with the Collateral terms and conditions.

What is the future for Collateral?
The Directors of the Company have recently appointed new external counsel and specialist
compliance consultants with regard their business model and approach.
In terms of the current business model and the Company's correspondence with you:
a. The Company has ring fenced the existing loan book and will look to wind this down
over the life of the loans in an appropriate way.
b. The Company is reviewing how it might best continue the business, a number of
potential routes forward have been identified but these are still being assessed.

economic

What happens to the blackburn loan? It was due to be repaid end of feb. What if it had been repaid, would it count as unsecured money lent to Col? And therefore unlikely to be recovered?

fun4everyone

First impressions : Looks about as good as we could have hoped for.

Sit tight and loan repayments will come to us.

Biggest unanswered question is what happens to the half filled loans that had not been drawn down yet.

EDIT : Really hope they put the site back online so we can login and get exact figures and know what is what. No buying/selling/investing of loans will be allowed if that happens though clearly.

takesyourchances

keyboardworrier wrote: »

I'm very relieved to see that. It looks like we will not be taking 100% capital loss after all!

I am relieved too there is hope of something back and not 100% capital loss. It could of been much, much worse, or no update at all tonight. We don't have anything until it happens, but at least we are in the picture. When your told the truth you can face it.

keyboardworrier

fun4everyone wrote: »

First impressions : Looks about as good as we could have hoped for.

Sit tight and loan repayments will come to us.

Biggest unanswered question is what happens to the half filled loans that had not been drawn down yet.

EDIT : Really hope they put the site back online so we can login and get exact figures and know what is what. No buying/selling/investing of loans will be allowed if that happens though clearly.

According to Collaterals T&C's that money can be taken by anyone who is owed money by Collateral.

Tomorrow will be interesting , I also hope the site is put back up so I can start withdrawing interest at least.

takesyourchances wrote: »

I am relieved too there is hope of something back and not 100% capital loss. It could of been much, much worse, or no update at all tonight. We don't have anything until it happens, but at least we are in the picture. When your told the truth you can face it.

I agree, and I am still annoyed that Collateral lied to us by saying the site is simply undergoing server maintenance.

I've learned a valuable lesson due to this saga and that is to keep a check on a P2P platforms financial health.

fun4everyone

Operating without an FCA licence lol. What a joke. I guess some medium risk debt investments via other means might be more appropriate for me going forward.

takesyourchances

fun4everyone wrote: »

First impressions : Looks about as good as we could have hoped for.

Sit tight and loan repayments will come to us.

Biggest unanswered question is what happens to the half filled loans that had not been drawn down yet.

EDIT : Really hope they put the site back online so we can login and get exact figures and know what is what. No buying/selling/investing of loans will be allowed if that happens though clearly.

Totally agree with you, it's as good as we can hope for when you have accepted it was lost. I would like to see our accounts back for viewing repayments and the situation.

On another note, I sold out of ratesetter funds already transferred out to my bank. So that will be trimmed off my total P2P by £1500 and will earmark this for one of my investment trusts.

I was thinking while taking a break I need to trim this P2P back after this lesson and prior to this I was getting uneasy with these large development loans too much is going wrong with them and can go wrong. There is a lifeline thrown here with this update, I would like to run MT down and will keep my Ablrate holding and I need my P2P to not run away like it had.

I am sure we will all exchange ideas and thoughts, this topic and the forum members has been really helpful with these events

TheShape

Hopefully the administration will proceed smoothly. However, on Monday when I put up for sale a loan part of an overdue diamond loan, I did think to myself that I very rarely see loans redeeming on the platform. I'd thought little of it previously but having recently (approx 6 mths) opened an account with Unbolted I notice loan repayments occurring regularly. I would expect to see plenty of defaults against individual pawn items, perhaps less so for group asset loans.

keyboardworrier

I do not believe that they were unaware that they were not FCA authorised, the emails I have show that the FCA info at the bottom got removed.

fun4everyone

takesyourchances wrote: »

I was thinking while taking a break I need to trim this P2P back after this lesson

Yep we did all take a lesson here. This was a respected and trusted platform by a lot of top posters on this site and the p2p forum. Operating without an FCA licence and causing this drama. Quite possibly we will be losing the cash on our accounts and money allocated to loans that hadn't filled. If that's the worst case scenario then it could have been a lot worse. I'm glad of this outcome and have also learned a lesson. Luckily I did diversify my p2p pretty widely and didn't have anywhere near as much in it as I do normal investments.

TheShape wrote: »

Hopefully the administration will proceed smoothly. However, on Monday when I put up for sale a loan part of an overdue diamond loan, I did think to myself that I very rarely see loans redeeming on the platform.

That is a good point. If nobody takes over the platform then I wonder if the receivers will just expect the people who we loaned money to to pay back on completion date. They can't offer a renewal? We could see some defaults in that case as what you say is very true.

keyboardworrier wrote: »

I do not believe that they were unaware that they were not FCA authorised, the emails I have show that the FCA info at the bottom got removed.

Exactly the same for me. Any email Feb 1st and beyond had the FCA authorisation text removed.