Funding Circle messed it up again

[kerimar]

I've been with FC since nearly the beginning. Loved the 15%Auctions then they stopped that. Got used to the fixed rates and still not too bad. Woke up this morning and see they have changed the format completely. Got a few weeks to shuffle it all about and pull out my surplus funds. Gutted. Not investing when I have no control over what I buy and what I sell. On top of that it's Autobid or nothing. I have loads of loan parts at between 100 and 200 pounds. That is enough for me. Autobid wants to lend 625 to every loan part it buys for me. What a joke. Also I don't touch A+ or A but now they say I must have them. Looking after the Institutions I guess. Steady 7% return for no effort. Not enough for me. Off to try Lendy. Looks good and still have control. Anyone else using it.

[Panicbuying]

Totally agree, I'm out as well.

[BackyardBullion]

I was out about 2 months ago. 

[SilverTanner]

I am also currently running FC down as the rates are now far too low for the risk, with very little funds left in.

Lendy was very good but the number of 'defaulted loans' is rising and the SM has been a bit blocked for a while now, although this has improved somewhat with the recent repayments, as a result I am not adding anymore funds and withdrawing interest but keeping the capital level. If they can resolve the 'defaulted loans' and bring some new decent ones in they I expect I will increase the investment.

This seems to be the case with several platforms at the moment and I think I have just about reached my overall P2P investment limit relative to everything else as good loans are getting few and far between!

[Uwink]

9 hours ago, SilverTanner said:

I am also currently running FC down as the rates are now far too low for the risk, with very little funds left in.

Lendy was very good but the number of 'defaulted loans' is rising and the SM has been a bit blocked for a while now, although this has improved somewhat with the recent repayments, as a result I am not adding anymore funds and withdrawing interest but keeping the capital level. If they can resolve the 'defaulted loans' and bring some new decent ones in they I expect I will increase the investment.

This seems to be the case with several platforms at the moment and I think I have just about reached my overall P2P investment limit relative to everything else as good loans are getting few and far between!

+1 Stopped investing (only small amounts)for same reasons.

[Panicbuying]

I always get really excited when I first learn about these initiatives, but after a couple of months in I usually come to the realisation that the after tax return is almost always better in my ISA...

[kerimar]

18 minutes ago, Panicbuying said:

I always get really excited when I first learn about these initiatives, but after a couple of months in I usually come to the realisation that the after tax return is almost always better in my ISA...

I've been with them a long time. Had 50%+ apr in the 1st 2 years. Not so good now though. With what I got in there now I am on an estimated 9.4% after fees and bad debts. That can just sit there now.  Never had an ISA as rates always too low. Now looking at Property loan ISA's projected 10.5%  may fill on of those up and see what happens

[breaktwister]

What is a property loan isa? Didn't find anything on google for the term

[kerimar]

On 01/09/2017 at 20:23, breaktwister said:

What is a property loan isa? Didn't find anything on google for the term

P2P lending secured 1st charge on properties. Some of the companies now do ISA's  Here is just 1 of them

https://www.lendingcrowd.com/self-select-isa/

 

[kerimar]

On 22/08/2017 at 23:20, SilverTanner said:

I am also currently running FC down as the rates are now far too low for the risk, with very little funds left in.

Lendy was very good but the number of 'defaulted loans' is rising and the SM has been a bit blocked for a while now, although this has improved somewhat with the recent repayments, as a result I am not adding anymore funds and withdrawing interest but keeping the capital level. If they can resolve the 'defaulted loans' and bring some new decent ones in they I expect I will increase the investment.

This seems to be the case with several platforms at the moment and I think I have just about reached my overall P2P investment limit relative to everything else as good loans are getting few and far between!

Aren't Lendy defaults covered by their provision fund

 

[SilverTanner]

19 minutes ago, kerimar said:

Aren't Lendy defaults covered by their provision fund

 

Lendy's 'provision fund' doesn't appear to be the same as other platforms. They have covered the (small?) shortfalls to date but this is at their discretion and the language seems to have changed recently, which, to me anyway, looks like they are preparing lenders for the first capital losses. The size of some loans, prices achieved at auction on distressed sales (which have not yet worked their way through the system to outcomes on the platform) and also that so many are overdue means that this was always going to happen.

[kerimar]

It's a nightmare. Having been with FC from nearly the outset, I was cvery comfortable with the whole set up. Now looking to diversify and not sure where to go. Looking at other P2p, Bonds, Stocks. Just trying to assess all the different risks.