Peer-to-peer lending sites: MSE guide discussion

AdrianC · 21 May 2019 at 6:40PM

So, given that it needs to be done to give us any chance of seeing any money (except as a big lumped-together single %age, regardless of if you'd deliberately avoided certain loans or held a cash balance), who else should be paying?

fun4everyone · 21 May 2019 at 6:44PM

AdrianC wrote: »

who else should be paying?

Of course the directors should be liable but there is precisely 0.0000000000000000000000000% chance there is any money coming from them or anywhere else bar recoverys-fees and hopefully FCA compensation. It is the latter that we should focus on as a group imo.

Empor · 22 May 2019 at 3:14PM

Has something changed with Ratesetter? On the rate trends chart the rate lines used to jump around everywhere, but since the beginning of March they're pretty smooth.

AdrianC · 22 May 2019 at 3:17PM

Rates have been terrible for a few weeks. I'm just churning the 1mo, because it's not worth the longer markets.

Froggitt · 22 May 2019 at 6:51PM

Empor wrote: »

Has something changed with Ratesetter? On the rate trends chart the rate lines used to jump around everywhere, but since the beginning of March they're pretty smooth.

This is what they told me

In regards to the market rate volatility, on the 20th of March, we updated the way in which the market rate is calculated. Previously, this was calculated by taking the weighted average of the loans that were formed the previous day between 6am and 10pm. The market rate is now calculated by taking the weighted average of the past 28 days.

Presumably you may still get a higher rate than the average rate on any particular day, but they only show the average rate, rather than the range.

AdrianC · 23 May 2019 at 1:04PM

Lendy have closed their secondary market. They've done this simply by suspending all "live" loans.

One claim in another place, allegedly from the horse's mouth, is that they're "reviewing" it since transaction volumes are so low. There is a certain degree of scepticism at this... Nothing has been sent to lenders as yet, or at least I've not had anything...

fun4everyone · 23 May 2019 at 9:15PM

Just a heads up, this has been happening for a couple of months but I only noticed now.

There's another court case going on in p2p land where the borrower is going after the lenders in the loan. Similar to "The London Loan" on Lendy except this time the affected platform is Unbolted.

They are only at the stage where they are in court trying to get the details of the individual lenders in their loans. Precedent was set in the Lendy loan where this was granted to the borrower by the courts. Nothing has been granted yet in this case.

I am on Unbolted, but not in the affected loans. I believe you might have had some communication from the platform already if you are and also there are some notes on the loans if you log in and look at the portion of your portfolio that is late. There's a fair bit of discussion on the p2p forum where the great poster Mousey attended the hearing the other day. Also the borrower himself turned up on another frank forum trying to intimidate lenders.

I assume this will prove to be frivolous again as both Unbolted's T&C's and the fact the claim is almost certainly purely vexatious mean nothing disastrous is going to happen. However,

- This is an unforseen headache p2p lenders do not need in anyway

- It's ridiculous that on a fully FCA authorised platform it can even be considered lenders are targets for legal action.

- It's worrying my personal details can and will be handed over to a trouble maker who has borrowed money from me if they want to kick up a legal fuss.

P2P continues to go from bad to worse. I already was not putting any more money in but this is really the final nail in the coffin.

kcrane · 23 May 2019 at 9:20PM

"Lendy closes secondary market"

I wonder how long before Funding Circle do the same? The length of time it takes to sell has gone from a few days to 50+ days. They have control over where new lending goes - to new loans or to exiting lenders. I think the delays in selling indicate they've decided to prioritise new loans, not a surprise as they publicise those figures, but it suggests the number of lenders exiting is enough to give them problems.