Peer-to-peer lending sites: MSE guide discussion

masonic

Daz2009 wrote: »

They're the administrators,if they don't have the powers to act on your behalf who's going to do it for you ?
This should be a given and if they needed to ask permission they should have done it at the start of the process.

They have powers to act on behalf of the companies in question for the benefit of all creditors. We are lenders/investors with trust claims first, and unsecured creditors second.

keyboardworrier

Daz2009 wrote: »

They're the administrators,if they don't have the powers to act on your behalf who's going to do it for you ?
This should be a given and if they needed to ask permission they should have done it at the start of the process.

I will likely give permission because I would not like my actions to adversely affect things for my fellow investors in these loans. My concern is not with BDO it's with Borrower's who may take objection to the actions taken - we're the ones in the firing line not BDO.

masonic

keyboardworrier wrote: »

I will likely give permission because I would not like my actions to adversely affect things for my fellow investors in these loans. My concern is not with BDO it's with Borrower's who may take objection to the actions taken - we're the ones in the firing line not BDO.

It is unlikely we would be in the firing line if we did not explicitly endorse the actions taken (for example through a lender vote), but that assumes the terms of the contract provide for such actions to be taken.

For the bling loans this is not relevant, as the borrowers have declined to buy their assets back, but for the property loans I don't believe we have seen the loan agreements.

taylornj

masonic wrote: »

No, it threatened a borrower with potential recovery action, which is not the same as following through. The loans were then repaid voluntarily.

Maybe but just how effective was a small outfit like Collateral, compared to BDO with the threats?


BDO gets a bigger chunk of the pie, if they are the ones getting the recovery fees from the loans. A slight conflict of interests maybe.

masonic

taylornj wrote: »

Maybe but just how effective was a small outfit like Collateral, compared to BDO with the threats?

There isn't enough data about either party to make any meaningful comparison.

BDO gets a bigger chunk of the pie, if they are the ones getting the recovery fees from the loans. A slight conflict of interests maybe.

BDO will appoint receivers where property loans are put in recovery. Those fees will obviously be deducted from the proceeds in exactly the same way as if Collateral was still operational. There would be some additional administrative costs vs a loan that repaid, but to suggest BDO would refuse repayment of a loan so that it can charge additional fees seems quite a stretch. The more likely scenario would be one whereby BDO behaves more like Lendy and FS and drags the process on and on without taking such action.

dont_use_vistaprint

Snow_Dog wrote: »

So, as 2018 draws to a close how did everybody get on with their p2p?

2018/19 so far looking excellent.

Gross yield 13.7%, annualised 10.9% (gross). Annoying the stuff within IF-ISA not started so well, 7.5% so far but early days. So glad I got my money out of Vanguard into P2P. I have 5 overdue loans that if they become bad debts would drop my gross to around 9.5%, but so far the recoveries team have not lost a single penny

Snow_Dog

dont_use_vistaprint wrote: »

2018/19 so far looking excellent.

Gross yield 13.7%, annualised 10.9% (gross). Annoying the stuff within IF-ISA not started so well, 7.5% so far but early days. So glad I got my money out of Vanguard into P2P. I have 5 overdue loans that if they become bad debts would drop my gross to around 9.5%, but so far the recoveries team have not lost a single penny

Not a bad yield. I took the easy route on the IFISA and dumped it into Assetz 30 day at 5.1% (though it also qualifies for the christmas/summer bonus so I figure 7%+ in the end on the IFISA chunk).


As for Vanguard probably wasnt a good choice of mine earlier in the year to divert more into VLS60 & 80 than into p2p, especially since I have rechecked and p2p is less than 1% of net worth.

masonic

For those interested, Ratesetter's operating company has published its accounts at Companies House, showing the £26.7m loss for the year reported earlier this month, which is a cumulative loss of over £50m over 2 years. Some further commentary available here.

fun4everyone

Toast to my fellow Collateral sufferers, we are getting our money back from all these scammers eventually.

takesyourchances

fun4everyone wrote: »

Toast to my fellow Collateral sufferers, we are getting our money back from all these scammers eventually.

Toast to that!! :beer::beer::T