Peer-to-peer lending sites: MSE guide discussion

granta

LoanPad update
I had their 60 day Premium account product and gave notice 60 days ago to withdraw funds. The cash has appeared in my account and was able to withdraw immediately. No delay. Was surprised as was expecting it to go into a queue like Ratesetter!

quirkydeptless

The P2P platforms that come out the other side of the tunnel on this will have gain some kudos for showing they can survive this event. Whether that will restore this forums faith in P2P, well that reamins to be seen.

My £200 Growth Street sign up bonus got paid Today. I'd mentally written off getting that, so kudos to Growth Street

However, due to their declared liquidity event, my money has to stay invested with them, so it's time for the white knuckle ride of "not normal market confitions"

DiggerUK

I don't know the percentage of P2P business that covers loans for cars, businesses and business or domestic property. I do know there are many advertisements for P2P investors in car loans.
It seems few have been keeping up with current economic news. The warning signs to get out of P2P while you can seem to be downplayed and ignored around here..._

Albermarle

DiggerUK said:

I don't know the percentage of P2P business that covers loans for cars, businesses and business or domestic property. I do know there are many advertisements for P2P investors in car loans.
It seems few have been keeping up with current economic news. The warning signs to get out of P2P while you can seem to be downplayed and ignored around here..._

I think the car loans are a separate/specific type of business and I do not think most of the main P2P platforms are that involved in that sector. Can be some personal loans that have been used to buy cars of course. Property is a big part of P2P as is lending to small businesses, so it is obviously going to be a difficult time . Hopefully the actions taken by some platforms , such as restricting withdrawals , diverting interest to provision funds, taking interest haircuts etc will mean they come out the other side.
Despite the noise on here and on the P2P forum , the stats seem to show that most investors ( retail and institutional ) are actually sitting tight and hoping for the best.

Sailtheworld

quirkydeptless said:

The P2P platforms that come out the other side of the tunnel on this will have gain some kudos for showing they can survive this event. Whether that will restore this forums faith in P2P, well that reamins to be seen.

My £200 Growth Street sign up bonus got paid Today. I'd mentally written off getting that, so kudos to Growth Street

However, due to their declared liquidity event, my money has to stay invested with them, so it's time for the white knuckle ride of "not normal market confitions"

They're obviously in trouble. If a physical financial institution did this I don't think you be congratulating them - you'd be in the queue outside the door like everyone else. There's a run on P2P. Their t&cs mean it's a slow run but it's a run nonetheless.

Sailtheworld

Albermarle said:

DiggerUK said:

I don't know the percentage of P2P business that covers loans for cars, businesses and business or domestic property. I do know there are many advertisements for P2P investors in car loans.
It seems few have been keeping up with current economic news. The warning signs to get out of P2P while you can seem to be downplayed and ignored around here..._

Despite the noise on here and on the P2P forum , the stats seem to show that most investors ( retail and institutional ) are actually sitting tight and hoping for the best.

Do they have many other choices?

Albermarle

Sailtheworld said:

Albermarle said:

DiggerUK said:

I don't know the percentage of P2P business that covers loans for cars, businesses and business or domestic property. I do know there are many advertisements for P2P investors in car loans.
It seems few have been keeping up with current economic news. The warning signs to get out of P2P while you can seem to be downplayed and ignored around here..._

Despite the noise on here and on the P2P forum , the stats seem to show that most investors ( retail and institutional ) are actually sitting tight and hoping for the best.

Do they have many other choices?

Well sort of - you have a choice on some platforms between
Sitting in a huge queue waiting for ages/getting dribs and drabs/selling at a big discount, whilst at the same time complaining bitterly on forums that  they can not immediately get their money out even though it is clearly not 'normal market conditions' 
Or just accept this was a known risk with P2P, and let the platforms get on with trying to survive and hope that a years lost interest will be the worst outcome. 
I suppose your attitude would depend on if you had stuck to the advice about multiple platforms and no more than 5% of investable income , or not.....

itwasntme001

Perhaps the only real lesson learnt from the situation is to have listened more carefully to the many warnings that were apparent with P2P long before the current unusual circumstances.  Of course it is probably too late for those who are invested in the platforms, time will tell if they will get back their capital, never-mind the interest.

Ciprico

One solution, maybe flawed, take a loan from Ratesetter, declare you can't make payments, and have them work out a repayment scheduled, based on when they will pay back your investment...
What could possibly go wrong with that....

(spoiler : yeah I know t&c's are different for loans and investments, they can just stop paying interest  /capital, you can't just stop repaying loan - though for them to get in this state many people must have done just that..)

KeepOnKnitting

Possibly flawed (definitely flawed) but amusing nonetheless.