Peer-to-peer lending sites: MSE guide discussion

Alexland

keyboardworrier said:

Interesting email from Assetz Capital, they are now charging lenders a fee of 0.9%!

Seems to have gone down with customers like a pot of sick
https://p2pindependentforum.com/thread/17029/introduction-lender-membership-fees
A substantial proportion of P2P platforms might fail in the next 18 months.

masonic

They rightly point out that within the terms they have reserved the right to introduce a fee, but there is no description of the fee mechanics or basis for charging fees, and they have not specified any valid reasons for introducing the fee. It would seem to me such a change would be subject to the Consumer Rights Act 2015, Schedule 2, part 1, paragraph 11, and regarded as an unfair term, unless paragraph 22 applies, specifically "(b) the consumer is free to dissolve the contract immediately".

Nardge

Thrugelmir said:

Nardge said:

With the 'Property' P2P loans, this is a sector which might be quite unaffected for quite sometime, if perhaps throughout. I imagine the demand for property will never cease. Loanpad are actually having more investors join the fray, CrowdProperty appear on top of their game, Kuflink have all my funds locked up for 5 years (and expensive to sell), two out of three of my Proplend loans are coming to fruition, together with the one loan held in CapitalRise. Octopus Choice on the other hand appear to have been the only Property platform to have taken fright, and have frozen all too.

What's the nature of the property investment itself? Will the developer survive? 

Today I decided that all will most likely go 'tits up' as it were, and made the command executive decision to pull everything out regardless of sales/withdrawals fees. Hopefully in time I'll get most of it back. If things turn out not as bad as anticipated, or if and when it's all over (perhaps years?), I may consider investing much smaller amounts in Peer-to-Peer. For the time being however, I'm getting it all out and transferring it to my Vanguard Life Strategy while I still can, Property IFISA included.

With Kind Regards

Albermarle

Seems to have gone down with some very noisy customers like a pot of sick. Others see it as one of many painful but necessary actions to try and survive an unprecedented situation 
https://p2pindependentforum.com/thread/17029/introduction-lender-membership-fees
A substantial proportion of P2P platforms might fail in the next 18 months.

As will many other previously sound companies , it will not just  be a special feature of P2P and the time frame could be a lot less than 18 months for many caught in the worst hit sectors.

Alexland

Yes some particularly vocal customers and a brave company rep called Chris who says they have taken a pay cut to keep the company going.

Picking P2P platforms seems to be a game of Russian roulette.

keyboardworrier

Alexland said:

Yes some particularly vocal customers and a brave company rep called Chris who says they have taken a pay cut to keep the company going.

Picking P2P platforms seems to be a game of Russian roulette.

This is absolutely right! I don't think I will ever return to P2P even when times begin to look good again. Equities have fallen hugely but it doesn't worry me at all - if I had large sums in P2P right now I would be losing sleep.

masonic

Credit where credit's due, Assetz Capital do seem to be doing the right thing as far as they can. They've switched to a bottom-up redemption model, where it doesn't matter whether you have £1,000 invested or £100,000, if a loan repays or cash becomes available, all lenders in the withdrawal queue of the relevant Access account are distributed, say, £10 each. It's also come to light that the 0.9%pa "membership" fee accrued against only performing loans, and is deducted from income (so it would accrue and not be collected if a loan is in forbearance, until interest payments resume).

If you heeded the standing recommendation not to invest more than 5-10% of your overall investments in P2P, and to distribute that 5-10% amongst several providers, the present situation should not cause any lost sleep. I suspect many who frequent this thread would recall the discussion towards the end of 2019 about pulling out of P2P entirely, and the narrative throughout 2019 that the rates on offer in P2P were not worth the risk, and those people can breathe a sigh of relief.

Against a backdrop of certain REITs and high yield bond Investment Trusts losing up to 50% of their share price at the point of greatest fear, none of this is of any surprise.

Albermarle

if I had large sums in P2P right now I would be losing sleep.

As Masonic said it should have only ever been a small % of anyone's portfolio. I have lost more sleep ( but not much ) over the stock market drops than P2P .

I had max 3.5% of portfolio at any time . Reduced it to 2.5% but as all other investments have gone South then it is back to 3 % over four sites . Avoided the 12% Lendy, Moneything type offerings and the four platforms I am in I including Assetz) are still going, for now . Over all the platforms over the last three(ish) years I have earnt around 6% interest tax free , which has all been withdrawn.

I have not left  spare cash on the sites just in case, but I am not even bothering trying to sell any loans , as it will be waste of time and just intend to sit tight and hope for the best . Same as with other investments. In the current situation there are not a lot of obvious options to do otherwise.

xiaogu

Hi everyone, I am new to this forum, Hope could some help from here and please  tolerate my English. 
I can not sleep. As my investment in Ratesetter seemed very dangerous. 
on 20th March, I released all my invest, but be told need to wait until new investor could take over my place. I can not withdraw my funds at all.
I check my account, founds everyday I got paid by borrowers back, but could not withdraw as all those back to markets again, my understanding is those money be used pay the investors who releasing money before. 
I think it is very wrong. As we(investors) have contracts with borrowers. If they paid back to me, why these money should be paid to others?
Very appreciate if could get some help or explation. 
Thanks.

xiaogu

 Hi Drphila,  how it is work? set your own rate as high as possible or as low as possible to get money back? 
I released my invest already, Set my rate very high 8%, thought this high rate is impossible to lent out, so it is easy to get money back. What is your way? Thanks .Xiao