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keyboardworrier wrote: »
Funding Secure recently created new accounts based upon access to funds - it's a disgrace that they took peoples money for these new products when surely they must have known what was coming (Lendy also did the same thing before going into administration)
masonic wrote: »
Some platforms make things worse by allowing loans to be traded well past the date they start to become distressed.
jamesd wrote: »
Being able to trade distressed and defaulted loans is desirable, not undesirable. One easy case can be ISA to non-ISA sales where one doesn't get tax relief and the other does. Someone who can't use the relief because interest is within the PSA is similar.
In other cases people can just have different opinions about a loan's prospects, want to simplify their tax reporting or want less hassle.
Where trading in impaired loans can be inappropriate can be when a platform doesn't disclose state information, making it impractical to decide a value. The Moneything Birkenhead loans were an extreme example of this because they didn't even disclose that the borrower had defaulted by overspending on the first and second tranches when offering the third.
Albermarle wrote: »
I think I would be correct in saying that the three P2P companies that have gone under where all effectively in the same sector of the P2P market . That is loans paying 12% plus and most likely charging their desperate borrowers 20%.
So far the P2P companies operating in apparently lower risk areas, and paying lower returns ( typically on average around 6% ) have survived . Although I suspect a bad recession would cause issues with some of them .
firestone wrote: »
is it not also the case that they are more of a pawn broker type platform securing loans against jewellery,watches,art,power boats etc
Nardge wrote: »
Thanks Malthusian and StehoukLendy and Funding Secure were known to be 'no no's' long before their collapse...
stehouk wrote: »
I worked in sales when i was younger and we used to be suspicious when a company dramatically increased orders for no apparent reason, they were stock piling prior to going bankrupt. seems the p2p are doing the same only with unsuspecting investors money,
The job cuts follow Growth Street contacting its lenders telling them that two loans, valued at more than £1m, had defaulted.
The London-based peer-to-peer lender said it had told investors that the cost of the two defaults would be registered on the company's balance sheet.
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