Peer-to-peer lending sites: MSE guide discussion

takesyourchances

Having been in Ratesetter before, to me anything under 5% is not really worth it and certainly not for 2% and 3%'s.



To get 5% at times your funds have to be invested for 5 years. Personally, I thought after a period of time, if I am prepared to tie funds up for 5 years and then re-invest re-payments which again re-starts the 5 years and goes on longer in total I prefer this money to be invested with better potential in my S&S ISA with dividends and possible capital growth.



Basically I don't feel money tied up in Ratesetter for 5 years is worth it really. Of course my S&S ISA is a view way beyond 5 years, but this is money I would of kept invested overall beyond 5 years over the long term.


I have got my funds out of these types of accounts and placed them across my Investment Trusts etc. Just some thoughts I have formed after having the likes of Ratesetter etc.

masonic

bhjm wrote: »

I agree - it is until now a very good rate for the low risk.

How have you assessed the level of risk? One of the reasons I don't touch RS is that it's so opaque it's impossible to know what the risk is up front.

Psyduck1980

Until quite recently as soon as my "available funds" in Funding Circle (i.e. interest payments on loan parts) reached £20 they were immediately reinvested. However, over the past month or so my available funds are continuing to grow and not being reinvested. I assumed my lending settings had been accidently changed but FC have confirmed this is not the case. Is anyone else facing a similar issue? If the available funds are not being invested promptly (or at all) I might well withdraw them and put them to use elsewhere.

Trying17

Hi, just sold my small holding in Funding circle,
they all sold in seconds, I think they have a shortage of loans,


The reason I pulled out what I could , was two loans going bad already, and there seems to be very little asset security, on the loans, I'm sticking with my S&S Isa from now on.

MarkFromCornwall

Psyduck1980 wrote: »

Until quite recently as soon as my "available funds" in Funding Circle (i.e. interest payments on loan parts) reached £20 they were immediately reinvested. However, over the past month or so my available funds are continuing to grow and not being reinvested. I assumed my lending settings had been accidently changed but FC have confirmed this is not the case. Is anyone else facing a similar issue?.

Yes, me too. I would be happy for my available funds to be re-invested but since this isn't happening I am withdrawing them as I don't want to see them sitting there earning no interest.

bxboards

masonic wrote: »

How have you assessed the level of risk? One of the reasons I don't touch RS is that it's so opaque it's impossible to know what the risk is up front.

One of the issues I have with RS as you say is the opaque-ness.

When the adpop / car loan issue came to light last year, those bad loans alone would have completely wiped out the provision fund.

To me that showed the danger vividly of relying on a provision fund to feel safe. Too be fair, the RS people realised they'd made a boo-boo and covered the losses.

I'd prefer good assets, sensibly valued with quick liquidation possibilities over a provision fund. To me a PF is for marketing purposes only. There is no 'safety' there, in bad times, it will probably last less than a week before being depleted.

agent69

Psyduck1980 wrote: »

Until quite recently as soon as my "available funds" in Funding Circle (i.e. interest payments on loan parts) reached £20 they were immediately reinvested. However, over the past month or so my available funds are continuing to grow and not being reinvested.

I contacted FC about this a week ago and was told there is a temporary shortage of loans. The algo distributes new loan parts with the aim of everyone having the same percentage of unallocated cash. For me that was 15%, which is way too much cash drag so I withdrew most of it.

taylornj

New Collateral speculation on the P2P forums if same person involved...


https://www.professionalpensions.com/professional-pensions/news/3034509/tpr-suspends-trustee-after-police-investigation-into-fraud


http://www.thepensionsregulator.gov.uk/press/trustee-suspended-after-police-investigation-launched-into-pension-fraud.aspx


Raises more questions.

jamesd

That would help to explain why the FCA wasn't happy with his role in the administration.

takesyourchances

taylornj wrote: »

New Collateral speculation on the P2P forums if same person involved...


https://www.professionalpensions.com/professional-pensions/news/3034509/tpr-suspends-trustee-after-police-investigation-into-fraud


http://www.thepensionsregulator.gov.uk/press/trustee-suspended-after-police-investigation-launched-into-pension-fraud.aspx


Raises more questions.

All very murky indeed