Peer-to-peer lending sites: MSE guide discussion

takesyourchances

Plenty coming up with Ablrate going on their update and they seem to be interested in Collateral. Hopefully Collateral investors get some updates soon, ideally start to see something returned and the web site returned for viewing accounts.

[Deleted User]

I know there's some talk on MT in terms of both communication (or lack of!) and the 'secrecy' - that term struck me as odd too, but as jamesd says, it's not an MT rule. Although I'd hope the relevant third party has been told it'll be listed on a large P2P platform.... there's bigger issues than a simple confidentiality clause if they aren't aware!!!

If they are aware.... they must know that confidentiality clause isn't worth much - how many people are registered on MT??

Also I had my LendInvest default back a few days ago, 5 months after the end of the term. Given that the borrower only requested an extension a matter of days before expiry of the term in terms of interest rates and communication MT are miles better.

And saying that, I've got 2 defaulted MT loans I haven't seen any recovery on yet either!

I doubt I'll be going back to LendInvest, as their rates are so much poorer for what seem similar risk loans IMO.

MT I'm skeptical of going back in until I see some capital recovery - plus nearly every end date has been missed that I've invested in. With possibility of needing the capital this year, I think I'll stick to Growthstreet @ 5% - never had an issue with them and 30 day (max) notice is a lot safer. Only way you'll get a late payment with GS is if they declare a 'resolution event' which would erode confidence - so seems somewhat unlikely (although not impossible)

takesyourchances

Somerset_La_La_La wrote: »

MT I'm skeptical of going back in until I see some capital recovery - plus nearly every end date has been missed that I've invested in. With possibility of needing the capital this year, I think I'll stick to Growthstreet @ 5% - never had an issue with them and 30 day (max) notice is a lot safer. Only way you'll get a late payment with GS is if they declare a 'resolution event' which would erode confidence - so seems somewhat unlikely (although not impossible)

I agree with your post, I am not putting anymore into MT, certainly not until some movement with the defaults happens and recovers, if I even put any back in, it won't be property developments. I am trying to reduce the platform at the moment down.

I read about Growth Street in reviews and the fact the loans are just 30 days, it seems interesting for an automatic account and lower risk.

As I reduce down from MT and fingers crossed get something back from Collateral, I am just keeping Ablrate with no reduction plans and using Lending Works etc with some in unbolted.

I may take a look at Growth Street with the shorter durations of loans and the different style of loans for some of the money I hopefully can reduce from MT and get back from Collateral.

economic

i decided to keep lending works - have 10k in there. abl will also keep have 4k.

rest - fc, rs, zopa, assetz will wind down as loans mature.

im down from 52k peak P2P exposure to 35k. Feel a lot more comfortable now but some way to go to get to desired levels.

economic

fc - has been experiencing quite a few bad loans. have exited nearly everything bar a few hundred stuck because of defaults. will see what actual returns are but my guess is that is not what is advertised but below.

rs - locked in 5-6% loans for 1y and 5y. Have 10k with them will just let mature as rates are very good given current rates.

assetz - waiting for 30d account to give my cash then will just have 2k in the manual account at decent rates which will just mature.

zopa - have 2k with them will just let mature or may sell later at a cost. rates are too low for risk imo.

jamesd

AdrianC wrote: »

They're MT's "rules", and all MT lenders agreed to abide by them when they opened their account.

Most of the rules of the other forum have nothing to do with MT. Want to write about the Lendy DFL015 Penrhos Court, Lyonshall, Kington, Herefordshire loan or share due diligence information with everyone, go ahead, * free, complete with links to Companies House or much, though not all, Land Registry information. That's all completely public information and the restrictions at the other place are just the invention of the admins there.

This specific MT loan does have a restriction which should be respected because not doing so could invalidate the protection involved and harm both borrower and lenders. It's the sort of thing that really does need protecting.

jamesd

Somerset_La_La_La wrote: »

I know there's some talk on MT in terms of both communication (or lack of!) and the 'secrecy' - that term struck me as odd too, but as jamesd says, it's not an MT rule.

There is actually an MT rule, though:

"19.2 You agree not to make attempts to establish the identity of or contact any of our other Lender Members or Borrowers."

That's so obviously a failure to treat lenders fairly and an unfair contract term that until they clarified that it was not intended to block normal discussion and due diligence I was going to report it to the FCA unfair contract terms team. On its face it prohibits:

1. Due diligence or doing anything other than relying on MT's marketing material.
2. Asking someone else if they use MT. Chatting with them in the pub or in other ways if they do.
3. Use of the MT section in any forum unless you first verify that you're the only lender using it.
4. Taking financial advice about an MT loan (your IFA would have to sign up and would then be barred from communicating with you). Your IFA wouldn't be able to help much anyway, the regulated activity is advising on P2P loan contracts and MT refuses to disclose them so the only possible advice is either don't or we can't advise.
5. Forming an MT lender's association or action group.
6. There's an MT loan to a hotel but you're banned from using that hotel because you'd have to contact the borrower to check in or order a meal.
7. There's an MT loan for student flats but you're banned from buying them because you'd have to contact the borrower.

It's good that they clarified but that term really needs replacing with something sensible.

takesyourchances

economic wrote: »

i decided to keep lending works - have 10k in there. abl will also keep have 4k.

rest - fc, rs, zopa, assetz will wind down as loans mature.

im down from 52k peak P2P exposure to 35k. Feel a lot more comfortable now but some way to go to get to desired levels.

Good to read your P2P latest and what you have decided on. Lending Works and Ablrate I think are a good choice to keep. I am happy to add into Lending Works from repayments from MT etc.

I got out of FC way last year, I got out with a small profit, but defaults are about £70 with nothing back from it. The sellout was fast and got out with about £100 on top. I would not touch FC again.

That is good you are at a more comfortable level, that is important. Growth Street interests me as a little diversification for short term loans along with Lending Works on the auto accounts to keep things simple.

I am fully out of fc, rs, zopa and assetz now.

I have also been upping my cash levels a bit too. Hopefully things are heading in the right direction. My Ablrate is at £5500 and so far so good and if I keep 2 - 3 other auto accounts - Lending Works, Unbolted and maybe Growth Street I would be happy with that at the moment and raise my cash level back up more towards my levels of last year which I am working on.

jamesd

economic wrote: »

what happens int he situation when there are no assets to pay administrators?

Investors pay. That's the situation the customers of stock broker Beaufort Securities that entered administration on 2 March are in.

takesyourchances

jamesd wrote: »

There is actually an MT rule, though:

"19.2 You agree not to make attempts to establish the identity of or contact any of our other Lender Members or Borrowers."

That's so obviously a failure to treat lenders fairly and an unfair contract term that until they clarified that it was not intended to block normal discussion and due diligence I was going to report it to the FCA unfair contract terms team. On its face it prohibits:

1. Due diligence or doing anything other than relying on MT's marketing material.
2. Asking someone else if they use MT. Chatting with them in the pub or in other ways if they do.
3. Use of the MT section in any forum unless you first verify that you're the only lender using it.
4. Taking financial advice about an MT loan (your IFA would have to sign up and would then be barred from communicating with you). Your IFA wouldn't be able to help much anyway, the regulated activity is advising on P2P loan contracts and MT refuses to disclose them so the only possible advice is either don't or we can't advise.
5. Forming an MT lender's association or action group.
6. There's an MT loan to a hotel but you're banned from using that hotel because you'd have to contact the borrower to check in or order a meal.
7. There's an MT loan for student flats but you're banned from buying them because you'd have to contact the borrower.

It's good that they clarified but that term really needs replacing with something sensible.

What is your thoughts going forward at the moment James with MT, are you also looking to scale back from the platform?

The MT rule above is way over the top.