Peer-to-peer lending sites: MSE guide discussion

keyboardworrier

http://citywire.co.uk/money/peer-to-peer-lender-collateral-falls-into-administration/a1097248

'They said they were FCA regulated and they are not,' he said. 'The firm thought it was acting on permissions from the FCA.'
He added the assets had been ring-fenced and that investors should receive their money back.
'As long as the repayments [on the loans] come through there won't be any shortfall,' he said.
Senior case administrator Jessica Hodgson added: 'We are still in the early stages of the administration, however present investigations lead us to believe that investors should receive 100p in the pound of their investment.'




To answer the above questions
1) No, and I highly doubt Collateral will ever make a return after this
2) 70-80% , it's going to be interesting because there will be no more extensions and people will have to cough up the cash.
3) Two years+, I can't remember how long some of the loans had to go.


My main concerns are the multi tranche loans.

fun4everyone

keyboardworrier wrote: »

'The firm thought it was acting on permissions from the FCA.'

You see when they claim this - isn't the fact they removed the we are authorised by the FCA blurb from every communication from the 1st Feb onwards proof they knew the licence was gone?

keyboardworrier

fun4everyone wrote: »

You see when they claim this - isn't the fact they removed the we are authorised by the FCA blurb from every communication from the 1st Feb onwards proof they knew the licence was gone?

Yes, it's proof they are lying (again)!


Also, I think the administrator should be providing any updates to all investors equally to stop rumours circulating.

economic

takesyourchances wrote: »

Yes I had a fee to get out of ratesetter, it was around £25 I cannot recall the actual amount to get £1500 odd out. For me, it was worth the £25 odd, it was in the 5 year and I had reduced RS down from about £3000 with larger early repayments coming in and interest withdrawal. My overall rate dropped to 4.9%. I was logging in regular to withdraw and on a small amount. I think that £1500 will be put to better use in my S&S ISA and is a reduction as well.

Similar idea to myself with keeping ABL and LW. I think narrowed down these two are worth keeping, after our experiences a hands off auto account with LW is not a bad keep and with as good a protection that is possible within P2P in the UK.

Unbolted would not be a large sum for me, mostly it's going out in fivers anyway on bling

That is good you have got down from 50k to 36K and then derisk your 22k. I think an auto with LW and a self select with ABL would be spot on to go with on a lower amount and lets hope ABL stays on track now.

My P2P investing last year per month overtook my S&S per month so that'll change around. As you derisk the 22k will you be feeding it in your stocks?

Good that we are thinking alike. I might keep RS for now. No fee for my 1y but there is a £80 fee for a 6k 5y loan.

i also have zopa as well, 2k in it might stick with it for now but repayments go back to bank.

I am roughly 70% in stocks (350-360k) so unless we geta meaningful correction i am not putting new money in stocks, just keep in cash for now.

takesyourchances

economic wrote: »

Good that we are thinking alike. I might keep RS for now. No fee for my 1y but there is a £80 fee for a 6k 5y loan.

i also have zopa as well, 2k in it might stick with it for now but repayments go back to bank.

I am roughly 70% in stocks (350-360k) so unless we geta meaningful correction i am not putting new money in stocks, just keep in cash for now.

It has been great to share ideas and we are thinking a like here which is good with going forward. Undertand with the £80 fee, you may find you get some larger repayments in, other day I got a £370 and withdrew. Payments like that will help speed it up. I don't use Zopa any more either, but I have had my account from when they started.

That is a great stock amount for your 70%. It's a goal to see my account turn to the 6 figures. The drop the other week has recovered a good lot so still kinda high.

I split my £1500 RS cash up tonight with £700 to stocks across a few funds I wanted to top up, bought £250 shares in another property on property partner (up to £750 now across 3) at least it is equity this time on built property and not defaults in loans on half built property and put the rest to cash for towards any opportunities that come up.

mn2203

bowlhead99 wrote: »

Lots of great advice, thanks very much - lots to think about!!

Davina40

It's a shame one of the other platforms didn't quietly take Collateral over to keep a bit of confidence in the sector.

Trentenders

That was never going to happen overnight though, was it?

I'd assume that a couple of platforms will express an interest in taking on some or all of the book. Whether the due diligence makes it worth pursuing or whether the book is full of junk, who knows....

takesyourchances

Just read bondmason has expressed an interest in Collaterals loan book http://www.p2pfinancenews.co.uk/2018/03/02/bondmason-collateral-loans/

AdrianC

Interesting. I'd have thought BM already had a decent stake in COL's loanbook, so it probably makes sense from a self-interest PoV. But it's a big departure for BM to actually directly take lenders on...

<looks at own BM account> Interesting. I'd have thought they'd flag any COL loans on the watchlist, but either I'm not in any or they don't have any.