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Funding Secure - advice required!

Hello to....is there anyone there....?!

OK, I'll just start.

I'm a relatively unexperienced investor, in the grand scheme of things. I started P2P lending about 4 years ago and have no other experience in investments. I've got all my capital in an IFISA in Funding Secure, but took the 4th Ways advice long long ago and spread it all far and wide across the platform (if not across multiple platforms as is probably even better), logging everything in my own spreadsheet to keep track and try to spot any trends.

One thing I've noticed of late is a number of loans not being fully funded. There are some loans that are available for investing which have been open for maybe a couple of months, possibly all renewals. This is a marked contrast to 6 or 12 months ago when pretty much everything sold out within a few minutes. Maybe it's these specific loans that investors are not interested in any more but what are other investors thoughts on this? There are new loans still being funded, it's just this 10 or 12 that seem to be in limbo and even though I've not invested in any of them myself, it gives me the willies a bit.

Another great trend, which doesn't take a genius to track, is that the number of loans that are completing (or being renewed) seems to be falling dramatically. None of the 16 loans I'm invested in that were due to complete this month have come to any fruition. I'm more than aware that you can't expect every single loan to come in exactly bang on time but some do, many have not but completed within a week or two - and now we're at none. It would appear that the majority of loans due to complete this month have not done so, so it's not like I've just picked the worst of the bunch, it's almost across the board.

I've also been logging their official statistics over the last 12 months (because they only have the last 3 months immediately available) and they're now sitting at over twice the number of loans deemed 'overdue' as there were 12 months ago, just short of twice the percentage amount of all loans taken out. Personally, I'm sitting at over half of my investments now locked up in late/overdue loans, some of which date back to a year since their expected completion date. Is there anyone else in a similar position?

Now, I'm aware that Funding Secure loans are probably classed as higher risk investments - most coming in around the 12, 13, 14% mark - but it seems to be a worrying downward trend in such a short period of time. I know 4th Way doesn't give Funding Secure a full and proper rating review because they do not get enough information from Funding Secure, how do other investors feel about this?

Let's not forget that Funding Secure were also in the mainstream press recently with regards to the paintings being sold that were supposed to be security for about £2mil of loans. Probably a one-off case, has anyone heard of this sort of thing happening before?

Whenever I speak to Funding Secure through their chat agents, I tend to get the same generic responses to queries. Should I just be sitting and waiting (preying) these loans come in or should we all as a community be badgering them to push ahead with defaults, to claim the securities and get our money back? It feels in many cases that the security means nothing and they have the interests of the borrowers more in mind than that of the investors. Am I just being paranoid in that thought?

Many thanks to anyone who comments, I very much look forward to reading any and all replies.

Comments

  • I've just had one loan complete with FS, it went 3 months past it's due by date but there was no info from them as to what was happening until I hounded them a couple of weeks ago when I was told it's due in a couple of days. Been paid and it was a great deal but I'll never know why it was late

  • I have been with FS for 7 months investing in secondary and new loans hoping to re-invest frequently. Of my 197 loans 128 are overdue! Perhaps they are secretly turning into 12 month loans.

  • I have with FS for two years, normal loan is 183 days, half of 200 loans are over due, over due 250 days are 30%. The longest one is 597 days! It still not default!!! They are very reluctant to default loans, may be luck of man power to deal with so many sub-prime loans!

  • I've been investing for 18 months. Just over half of my loans are overdue (by up to 10 months). Of these 4 are now classed as Unredeemed. I've now stopped investing in any new loans, and will just have to sit tight and hope that I get most of my money back over the next few years. One of my frustrations is that their feedback on progressing these overdue loans is very patchy and often vague (particularly compared to other P2P platforms such as Assetz Capital). Given my generally good experience of the other 8 P2P companies I invest through, this is a very disappointing one.

  • I am similar to you, but have moved half of my investment out in cash, leaving rest with about 80% overdue or unredeemed. Not sure what to do but badger them!
    If there were a group formed of similar lenders I would definitely join.

  • I would never have 'All my capital' in any one P2P organisation, especially not one of the smaller ones. You really need to diversify more.

  • I, too, have a large number of significant loans with Funding Secure, all of which are overdue, some by over a year, and others unredeemed. It appears that the management changed recently and many of the loans which the previous management arranged were inadequately researched. I attempted to place my loans on the secondary market, but none of them were eligible to be resold according to Funding Secure.
    The firm seems to be understaffed, and the information available to lenders about the progress of individual loans is vague and unhelpful. They seem reluctant to take action on behalf of lenders to default the overdue loans. Whilst this can be a lengthy process, the sooner it is started the more likely it is to succeed in recovering lenders' funds and there should be many more cases in which attempts are made to realise the capital (let alone the overdue interest).
    Concerted action by affected lenders would seem to be the only way of adding momentum and I would be glad to join with other concerned investors.

  • From your description I would let the FCA know what is going on at Funding Secure. I am assuming they are regulated by the FCA seeing as they have an IFISA licence. As the professional official body overseeing such things I am sure they would listen to you.

  • I contacted the FCA but they did not seem very interested, beyond providing the name of the nominated complaints officer for the company. I registered a complaint about the slowness and unwillingness to pursue overdue borrowers and to default the loans in good time where no progress has been made with the borrowers. I was informed that I would receive a reply within eight weeks (No comment) !

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