Peer-to-peer lending sites: MSE guide discussion

shoi

keyboardworrier wrote: »

.. The FCA will be watching a certain situation closely but they will not get involved, they will likely just stop non institutional investors getting involved with P2P, which I am starting to think may be a wise idea.....

It would rather put the kybosh on the name P2P

shoi

masonic wrote: »

A 'survey' is no substitute for a robust legal agreement that spells out what happens to delinquent borrowers and which is adhered to.

`....

I definitely agree that sticking to the agreement is Plan A (although apparently it's not always considered as treating borrowers fairly which I find hard to understand when the borrower is a business). BUT you also have to think of the art of the possible and maximising recovery, which might mean a plan B is preferable.

shoi

takesyourchances wrote: »

Interesting, yes the least hassles it would seem would be from the likes of Lending Works at the moment and those styles of accounts. ....

Least hassle definitely. But you don't know what lies beneath the smoooth surface, Wellesley came close to coming a cropper, Ratesetter have had their moments.

See https://www.orcamoney.com/analytics/lending-works

masonic

shoi wrote: »

I definitely agree that sticking to the agreement is Plan A (although apparently it's not always considered as treating borrowers fairly which I find hard to understand when the borrower is a business). BUT you also have to think of the art of the possible and maximising recovery, which might mean a plan B is preferable.

Even when it exposes lenders to legal proceedings that could result in them being held liable for damages far in excess of what they invested in a loan?

Lenders should not be involved in the decision making process at all, unless they do so after receiving legal advice and preferably have some liability insurance in place. The process should all be detailed in the contract and that process followed to ensure that lenders are not exposed to an action for breach of contract.

My comments are in relation to a specific instance where a borrower has taken a P2P platform to court to compel the platform to disclose the names and addresses of lenders who invested in the loans (the court has ordered that the platform must hand over these details). The purpose of this disclosure is so that the borrower can hold those lenders jointly and severally liable for a further advance of funds and for damages resulting from their failure to meet a purported contractual obligation to advance those funds. I'm not involved but I understand there was a lender vote that set this course of action in motion. When is that ever the most preferred course of action? It shouldn't even be plan Z.

Here is the court transcript for those interested: https://www.3harecourt.com/assets/asset-store/file/UKT_2018_03_44227436.pdf

bxboards

Looks like Lendy is shutting up shop - this has always one of my 'wouldn't touch it with a barge pole' platforms.

Front page on Financial Times:

https://www.ft.com/content/a19cd1d8-db65-11e8-9f04-38d397e6661c

FT links sometimes don't work so google: 'UK P2P lender looks into selling the loans on its platform' if my direct link doesn't work.

Good luck to all who are unfortunately to be with these people - the Lendy Wealth attempt which I bargepoled a month or two back must have been the last throw of the dice?

keyboardworrier

bxboards wrote: »

Looks like Lendy is shutting up shop - this has always one of my 'wouldn't touch it with a barge pole' platforms.

Front page on Financial Times:

https://www.ft.com/content/a19cd1d8-db65-11e8-9f04-38d397e6661c

FT links sometimes don't work so google: 'UK P2P lender looks into selling the loans on its platform' if my direct link doesn't work.

Good luck to all who are unfortunately to be with these people - the Lendy Wealth attempt which I bargepoled a month or two back must have been the last throw of the dice?

The Lendy rep on the P2P forum said they are seeking to offload some of the loan book but only if lenders choose to accept the offer. I have such a small amount left with Lendy that I am only concerned with one particular loan.





Interesting email received from MoneyThing this afternoon regarding putting into place a secondary market with premiums and discounts, it might start making the SM move again if lenders vote for it.

fun4everyone

Thanks for the link bxboards. I never liked them from back in the "Saving Stream" days and was vocal about it on here which got me a lot of flack (they made dubious claims on their front page back then which made me think they were ones to avoid). I hope nobody loses out and I also hope this is not a sign of things to come from other platforms.

takesyourchances

@keyboardwarrior I filled out the MT questionnaire in favour of it, I'd like to see this in place as the secondary market can be crazy slow with months in some cases. It should help the exit process if this was brought in

Nardge

bxboards wrote: »

Looks like Lendy is shutting up shop - this has always one of my 'wouldn't touch it with a barge pole' platforms.

Which other P2P sites would you not touch with a barge-pole...

I read of Collateral's collapse, Moneything, and Lendy/Saving Stream from the 101 pages here...

Could you advise of any other dubious platforms to less knowledgeable investors such as myself?

Also, if P2P companies (bar 1) are not turning a profit, how is it they survive and pay their staff?

Malthusian

keyboardworrier wrote: »

The Lendy rep on the P2P forum said they are seeking to offload some of the loan book but only if lenders choose to accept the offer.

It would be an act of great optimism and courage to not accept any offer to get rid of a portfolio of loans which is complete junk and which exposes you to the possibility of legal claims to get you to hand over even more money.