Peer-to-peer lending sites: MSE guide discussion

davidmercury

Having read Martins comments on PtoP savings I decided to risk £3000.
I opened an account with Ratesetter and then forgot about it.
3 months later I checked online to see what was happening only to find I still had £3000 in the "bank" an consequently no interest.
I transferred my £3000 back to my bank and have given up on this investment idea. :money:

AdrianC

davidmercury wrote: »

Having read Martins comments on PtoP savings I decided to risk £3000.
I opened an account with Ratesetter and then forgot about it.
3 months later I checked online to see what was happening only to find I still had £3000 in the "bank" an consequently no interest.
I transferred my £3000 back to my bank and have given up on this investment idea. :money:

Yes, reading how to use platforms does help.

lordrobs

I found this page via the Peer 2 Peer lending page on MSE and the Funding Circle info on there really needs updating in regard to how long it takes to get your money out. I've lost track how long my last sale has been (not)going for but it is probably best measuring your expectations in terms of months let alone weeks or days.

masonic

fun4everyone wrote: »

Everyone involved in p2p is scamming in some way.

What even us lenders?

fun4everyone

masonic wrote: »

What even us lenders?

Whoring sign up and referral bonuses. Attempting to get 12%+ on money with little risk b/cos you can sell an asset someone has signed off on if they dont pay your rates. All because you don't want stock market drops and the base rate is crap. Thinking you can shark the market by picking and choosing the best loans and be one step ahead of the curve loaning money out at high rates in a new market. Using platforms which are highly dubious as you think you can get away with it. Demanding full compensation off the FCA/the platform/whoever when the scammer gets scammed. All scams.

AdrianC

D'you mind, "fun4everyone"? The grown-ups are talking here...

The idea of P2P is a sound one. The problem is that it quickly became a victim of its own success - the risk-return nose-dived as platforms started to grub around for borrowers, any borrowers, to meet lender demand.

Of the two high-profile failures...
Collateral's management were playing fast and loose. They lied about FCA approval, helped by laxity in the FCA's online register. Then, when the shutters came down, they lied and cheated the "administration", causing a two-month delay until proper administrators were appointed, by which time the loanbook had "been lost"...

Lendy's failure otoh is, in part, down to an increase in loans failing - but in just as large part, due to simply not writing any more new loans. There were only a small handful of new loans originated in the first months of 2018. For a platform where most loans were ~12mo, that's simply unsustainable.

DFL34 - Jan 2018 - £1.5m
DFL37 - July 2018 - £550k (same borrower)

PBL 196/197 - Feb 2018 - £270k total

PBL199/201 - March 2018 - £4.3m total

PBL200 - April 2018 - £750k
...and that's it.

fun4everyone

AdrianC wrote: »

D'you mind, "fun4everyone"? The grown-ups are talking here...

The idea of P2P is a sound one. The problem is that it quickly became a victim of its own success - the risk-return nose-dived as platforms started to grub around for borrowers, any borrowers, to meet lender demand.

Of the two high-profile failures...
Collateral's management were playing fast and loose. They lied about FCA approval, helped by laxity in the FCA's online register. Then, when the shutters came down, they lied and cheated the "administration", causing a two-month delay until proper administrators were appointed, by which time the loanbook had "been lost"...

Lendy's failure otoh is, in part, down to an increase in loans failing - but in just as large part, due to simply not writing any more new loans. There were only a small handful of new loans originated in the first months of 2018. For a platform where most loans were ~12mo, that's simply unsustainable.

DFL34 - Jan 2018 - £1.5m
DFL37 - July 2018 - £550k (same borrower)

PBL 196/197 - Feb 2018 - £270k total

PBL199/201 - March 2018 - £4.3m total

PBL200 - April 2018 - £750k
...and that's it.

Blah blah blah get off your high horse.

masonic

fun4everyone wrote: »

Whoring sign up and referral bonuses. Attempting to get 12%+ on money with little risk b/cos you can sell an asset someone has signed off on if they dont pay your rates. All because you don't want stock market drops and the base rate is crap. Thinking you can shark the market by picking and choosing the best loans and be one step ahead of the curve loaning money out at high rates in a new market. Using platforms which are highly dubious as you think you can get away with it. Demanding full compensation off the FCA/the platform/whoever when the scammer gets scammed. All scams.

I suppose opening multiple bank accounts for the benefits on offer, using current accounts as savings accounts and switching ISP/energy providers for cashback constitutes scamming too by your definition. I'm guilty as charged of all of that.

If we outlawed lending entirely, then that would sort everything out

fun4everyone

masonic wrote: »

I suppose

Loads of good scams there, guilty as charged myself for 16 years now :beer:

lol @ anyone who thinks they have the moral high ground doing all the crap in p2p lending

takesyourchances

fun4everyone wrote: »

Whoring sign up and referral bonuses. Attempting to get 12%+ on money with little risk b/cos you can sell an asset someone has signed off on if they dont pay your rates. All because you don't want stock market drops and the base rate is crap. Thinking you can shark the market by picking and choosing the best loans and be one step ahead of the curve loaning money out at high rates in a new market. Using platforms which are highly dubious as you think you can get away with it. Demanding full compensation off the FCA/the platform/whoever when the scammer gets scammed. All scams.

haha got a good laugh reading on this on my forum catch up this evening :rotfl:


I prefer the stock market drops myself now to P2P :rotfl:


On the bright side, at least we have strait laced politicans looking out for us all away from all this murky water :rotfl: