Peer-to-peer lending sites: MSE guide discussion

takesyourchances

Just read on the P2P forum about the FCA going to court next month regarding Collateral and the administrators along the lines of appointing their own.

It'll all work itself out I am sure, but a bit messy it seems.

fun4everyone

takesyourchances wrote: »

Just read on the P2P forum about the FCA going to court next month regarding Collateral and the administrators along the lines of appointing their own.

Just when everything seemed to be going so well. Incredible.

takesyourchances

fun4everyone wrote: »

Just when everything seemed to be going so well. Incredible.

It is incredible, it's ourselves who are ultimately most affected waiting on the first sign of a penny back and possibly more messing with this news.

[Deleted User]

Has anyone invested in Capital Rise?

I notice they are offering an Innovative Finance ISA. However, I haven't really heard of this company. They seem new, and there isn't a lot of information about them on the internet, other than their own website.

Can anyone shed any light on them, or have any experience with them?

keyboardworrier

A couple of new articles regarding Collateral

http://www.p2pfinancenews.co.uk/2018/04/04/fca-collateral-administration-protect-investors/

http://www.p2pfinancenews.co.uk/2018/04/04/hnw-lending-eyes-collateral-loanbook/

TheShape

A direct link to the FCA comment on their site:

https://www.fca.org.uk/news/news-stories/information-investors-collateral-companies

TheShape

Re Collateral:

While it is encouraging to see other platforms express an interest in managing the Collateral loan-book, they may not be so keen once they've examined the loan-book closely. While the main financial default risk would remain with the lenders, another platform is unlikely to want to take over non-performing loans as the administration might be time consuming and costly and might negatively affect a platform's reputation if it is seen to suffer defaults.

richardjmcdougall

Whats the thoughts on Orca they have a £100 bonus if you invest £1000 for a year, Orca spreads the investment over 3/4 major p2p platforms. 5% after Orcas 0.65% fee.

firestone

richardjmcdougall wrote: »

Whats the thoughts on Orca they have a £100 bonus if you invest £1000 for a year, Orca spreads the investment over 3/4 major p2p platforms. 5% after Orcas 0.65% fee.

They have been offering this product for about 2 weeks.Unless you don't want to spend the time joining each company or do not want to check an account on say a monthly basis then i can not see the point of paying the 0.65% fee.All 5 companies they offer are at the lower end of the risk scale and do not charge fee's themselves so why pay would be my question i.e Lending works pay 6% on 5 years at the moment & Octopus choice 4.2% for what should be instant access hopefully.By adding another platform you maybe increasing your risk if Orca run in to trouble(not sure where you stand with that)Also at the £1000 pound level they only use 3 out of the 5 companies.

choochootrain

firestone wrote: »

.By adding another platform you maybe increasing your risk if Orca run in to trouble(not sure where you stand with that)Also at the £1000 pound level they only use 3 out of the 5 companies.

From https://www.orcamoney.com/faqs

'If Orca were to become insolvent, your funds will not be directly impacted. The funds held in your own individual Modulr Account are held in your own name at all times and all investments on underlying P2P platforms are held in your own name, not Orca's. This means that in the event of Orca failing, you still have the rights to your funds and your investments.

If Orca was to fail, you will be given the option to withdraw from your investments and have the proceeds paid back into your bank account or to take control of your accounts at the underlying P2P platforms.'