Moneything have ceased trading

username901

Had an email a few minutes ago to say that moneything have ceased taking new loans and are winding down.


If anyone still has funds here there is still the option to withdraw. I withdrew and sold most of my loans about 6 months ago but still have some tied up in bad loans, will find out what will happen to these.

More info on their homepage

george4064

Not surprising really, hope no-one is too badly burnt by this.

DiggerUK

Reading the site for Moneything is an essay for not getting involved in dangerous P2P investments.

"As with all peer-to-peer loans, our products place capital at risk. You may not get back the full amount you lend and/ or the interest you expect."

It is the warning many just choose to ignore. I have little sympathy..._

AlanP_2

DiggerUK wrote: »

Reading the site for Moneything is an essay for not getting involved in dangerous P2P investments.

"As with all peer-to-peer loans, our products place capital at risk. You may not get back the full amount you lend and/ or the interest you expect."

It is the warning many just choose to ignore. I have little sympathy..._

That warning applies to all investments, even cash based if you had more than £85k with an institution, so I don't see it like you do.

P2P is high risk and is starting to tail off as the economy limps along, rates drop and some bad loans come home to roost across the industry.

Whilst Moneything are winding up as a business and aren't taking any new deposits or making any new loans the business is still running and they are "winding up" the existing loans that are outstanding and will be returning capital & interest to investors as that process unfolds (starting with any uninvested client cash immediately).

What will happen to defaulted loans that take an extended period to be resolved remains to be seen but given that a number of (currently) good loans still have 12 months or more to run then there is no immediate issue on that front.

The fact that they are withdrawing from the market and will eventually cease to be a trading company makes no difference to the likelihood of losing money, it is the underlying loan risk that generates losses.

Albermarle

P2P is high risk and is starting to tail off as the economy limps along, rates drop and some bad loans come home to roost across the industry.

Although unsurprisingly the major ones that have collapsed/wound down have all been at the high risk/high rates/dodgy property development/wild west end of the P2P market .
The main P2P sites offering more modest returns and more controlled risks have been OK and are producing steady returns for investors ( so far …)

masonic

Albermarle wrote: »

The main P2P sites offering more modest returns and more controlled risks have been OK and are producing steady returns for investors ( so far …)

Yes, although those modest rates have become even more modest, with some platforms slashing them to near savings account levels.

The problem with MoneyThing was that its investors weren't interested in loans at lower rates and it appears it wasn't willing to continue serving up loans at its usual rates sourced from an ever dwindling pool of higher risk/desperate borrowers, while the more credit-worthy borrowers had no trouble obtaining credit at better rates elsewhere. I can't really fault them for the decision they've taken. I hope other platforms take the same responsible course when their time comes as I'm sure this won't be the last failure of the P2P business model.