Peer-to-peer lending sites: MSE guide discussion

jamesd

:beer:

fun4everyone wrote: »

Update to the collateral situation in a letter received from Refresh Recovery. They consider us "creditors". I would hope that makes us specifically secured creditors and NOT unsecured but what would the other option be?

Our money is supposed to be segregated from theirs in part to ensure that we don't end up being creditors of the company if it becomes insolvent. There shouldn't be any mingling of our money with theirs. That way we get all of our money back regardless of the creditor preference rules. Except if there isn't enough money to pay for the administration, then ours would be used to pay.

thenewcomer

i need to send a letter to col as a creditor!

btw with unbolted do i get notified when new cash get deposited into my account?

takesyourchances

thenewcomer wrote: »

i need to send a letter to col as a creditor!

btw with unbolted do i get notified when new cash get deposited into my account?

Why do you need to send a letter to Col? ....we should know more after the court date on direction hopefully.

Yes unbolted email when your account is credited with balance and also on any loans, repayments etc.

keyboardworrier

I'm not sending anything to the administrators of Collateral. Their latest update did nothing but confuse matters further so I am going to wait until after the court date, we will all have a clearer idea of where we stand then.

I did see this update from this website http://explorep2p.com/collateraluk/ which could explain why they think some people may be creditors


One concern we have, however is that during February, Collateral UK changed its terms and conditions to say that !!!8220;if Collateral was to become insolvent then any money held by it would not be held in accordance with the FCA!!!8217;s client money rules, which require in particular that client money is held separately from a firm!!!8217;s own money, and it is likely you would rank as an ordinary unsecured creditor. Ordinary unsecured creditors rarely make any recovery on insolvency.!!!8221; We hope that these changes to the terms and conditions have no impact on the legal position of Collateral UK!!!8217;s investors. Particularly as the changes to the wording were made without any consultation or explicit notification.

jamesd

thenewcomer wrote: »

with unbolted do i get notified when new cash get deposited into my account?

That''s an option in your email preferences on the site. Current options are:

"Would you like to receive an email...
...immediately when your account is credited?
...immediately when a loan repayment occurs?
...immediately when a sale payment occurs?
...immediately when a withdrawal is processed?
...immediately when an AutoLend instruction is executed?
...immediately when an asset for an overdue loan is put on sale?
...immediately when a new loan is put on sale?
...with a summary of activity, at the end of each day? "

Just tick the ones you want to get.

thenewcomer

thanks those who replied to my questions.

managed to invest 10 quids in todays unbolted loan.

i doubt RR will continue as the administrator for collateral after this. but i have still sent an email to tell them that i am a lender/ creditor.

economic

I remember i had a couple of hundred quid in a loan and almost no cash with Col. The loan was due to be repaid around the time Col went into admin. What happens in that case? I am i creditor in which case i am unsecured OR am i a lender? Two totally different positions to be in and would have different outcome when all is settled.

I thought legally i am a lender but if the loan was repaid whilst it went into admin, would i then be a creditor as i was not able to withdraw the cash?

jamesd

economic, I don't think that the status of money in the client money account is entirely clear, in part because it seems that they had no authorisation to hold client money and even have such an account. In general, money in client money accounts is not an asset of a business but belongs to its customers.

takesyourchances

James how do you feel the Collateral situation will eventually resolve?

I've mostly put it out of my mind as outside my control type thing and while recycling money in some p2p platforms I'm now putting most of my fresh investment funds into my s&s ISA as time on my side to ride things out. With basically just under half of my p2p unresolved between Collateral and MT defaults I think this is best for me at present and aiming towards some goals in my S&S ISA and also IT based dividend amounts.

keyboardworrier

A few days ago, Kuflink emailed investors letting us know that they' are ending their 20% skin in the game, and replacing it with a provision fund instead. This is an awful development for investors IMO, with their 20% initial investment it gave me a lot of confidence in the platform but now I will be exiting and not putting money back in (Unless the rates increase to around 10% which is very unlikely)