London Capital and Finance

Holeydel

masonic wrote: »

That can be easily remedied with just a few hours reading.

You got that right, it's just all that damn jargon!

Alexland

Holeydel wrote: »

Maybe it doesn't help, it is solely my point of view and I'm neither praising LCF or suggesting people should avoid LCF. I simply decided to wrote as perspective from an average joe who's put funds into the company. At the moment it's been beneficial. Come January it might be a disaster. This is a risk I've chosen to take, which seems to be the deal when it comes to investing of any nature.

No most investments have quantifiable risk - not all risks are equal. Some products are substantially higher risk than others. Taking a high risk often results in disappointment when the 'investment' completely fails. Investment is about getting the best risk adjusted return.

Alex

masonic

Holeydel wrote: »

Maybe it doesn't help, it is solely my point of view and I'm neither praising LCF or suggesting people should avoid LCF. I simply decided to wrote as perspective from an average joe who's put funds into the company. At the moment it's been beneficial. Come January it might be a disaster. This is a risk I've chosen to take, which seems to be the deal when it comes to investing of any nature.

There are plenty of investing options that don't come with a distinct possibility of losing all of the money you invest. It's a giant leap to go from a savings account where there is no chance of losing any of your capital, to a very high risk niche investment designed for people earning £200,000 per year who can throw in a few thousand and shrug it off if they lose the lot. That's who a product like this should be marketed to.

There's a reason why you lose all of your normal rights as a consumer (like FSCS compensation and access to the Financial Ombudsman) when you invest in something like this - it's not for consumers, and there is an underlying principle that people who take such high risks shouldn't be helped out by normal taxpayers if those very high risk investments go pear shaped or the people offering them turn out to be dodgy.

It's a shame that these companies are marketing their products so irresponsibly and that people see these options as preferable to lower risk stocks and shares or mainstream investment funds.

Holeydel wrote: »

You got that right, it's just all that damn jargon!

There are sites that explain things in simpler terms. There's a nice series of articles here covering the basics (first in the series is at the bottom). Plus lots of discussion in forums like this where newbies have been given pointers to other resources that have helped them on their way.

dunstonh

I'm not particularly clued up with finance and know nothing about stocks and shares.

So, why are you buying extremely high-risk unregulated loan notes?

I was attracted to the company for two reasons, its simplicity and the companies ratings and reviews based on a FeeFo, a third party site.

Simplicity? Loan notes are not simple. OK, tell us who the top 10 beneficiaries of your money? i.e. who is your money being loaned to?

As for review sites? The blind leading the blind is no way to buy a financial product. Good grief.

I'm guessing for those who have a better than average knowledge of investing, I'm being daft and wreckless.

You already know the answer to that.

londoninvestor

Holeydel wrote: »

For those still searching high street banks for the best ISA rates, my post probably comes across as a viable option for making better use of their savings. Either way, I hope some of this helps.

I really hope not, because that's an apples-and-oranges comparison. This isn't a product that "makes better use of savings". It's a risky and opaque investment.

People are entitled to make such investments with their eyes open of course, but it would be pretty unsatisfactory to see someone to put money into this thinking it's a capital-guaranteed savings product, and then losing their money.

That's why this company (like some similar ones, it's not the only culprit) gets impassioned reactions on here. It's less the riskiness per se - it's the advertising to the general public on Facebook, the claims of "fixed" rates (when only in the very small print is it stated that payments are not guaranteed if borrowers default), and so on.

For example, this "FAQ page". You have to go through all the 19 questions and right down to the last two sentences of the Disclaimer in the small print to find out your interest and capital are at risk.

Holeydel

dunstonh wrote: »

So, why are you buying extremely high-risk unregulated loan notes?

Already answered that one

dunstonh wrote: »

Simplicity? Loan notes are not simple. OK, tell us who the top 10 beneficiaries of your money? i.e. who is your money being loaned to?

I have no idea, that's the simplicity of it as a consumer.

dunstonh wrote: »

You already know the answer to that.

I wasn't asking a question.

Don't worry buddy, I get what your point really is. I hope it came off for you as well as you hoped.

EachPenny

Holeydel wrote: »

Don't worry buddy, I get what your point really is. I hope it came off for you as well as you hoped.

What a strange thing to say.

...what happened to your original post? Have you changed your mind about your experience with LCF?

Holeydel

Nah, I still think they're alright for my circumstance.

Alexland

Holeydel wrote: »

Nah, I still think they're alright for my circumstance.

Ok you are welcome to think that but as you say that's against the view of the regulars here who have a genuine concern that these products may spectacularly fail one day causing life changing losses and hardship for exposed consumers.

Alex

verybigchris

This is weird. Their accounts were due on 27th October (as a PLC they have 6 months from the end of their financial year, which was 27th April). Yesterday they shortened their accounting period by one day (the third time they've done that in 12 months) and now their new deadline is 17th January 2019.


Does knocking a day off your accounting period really give you a 3 month filing extension? If so, that's very convenient for any companies that have something to hide. I've been waiting for the new accounts to see if the number of active loans they have has risen or if it's still just 11.



Companies House