mj62mj62, on 15 September 2012 - 06:06, said:
Jeansloans - you mention Kevin as the CEO - over on the moneysavingexpert forum there is a thincats staff member named emperorbruce who was pretending to be a customer and was caught out. That seems pretty slimy and amateur!
On another forum, someone commented that these secured loans were, in one case, found to only have a small amount of security against it.
I love zopa (long time lender) and was seriously interested in thincats but owhere there is smoke there is fire. Do they seem less amateur in your actual dealings with them?
Firstly, as noted above, Thincats loans are secured on business assets (often first charges it seems), whereas lending on Funding Circle, for example, is still mainly unsecured, albeit with most loans offering some form of guarantee. Typically, the information set provided with Thincats loan requests is superior to what you see on FC, and may incude personal credit scoring for principals providing any personal guarantees. Ultimately, individuals can get around their supposed obligations via personal bankruptcy, IVAs as seen on some FC loans recently, but there should often be greater transparancy on any proposed security/guarantees with the TC proposals - FC gives no detail of or output from DG verification.
Particular caution may be warranted in the case of larger borrowing requests where funding is being sought on more than one platform. There were some recent exchanges about borrowers sourcing loans from both TC and FC where the investment case presented to TC lenders was not only more detailed but apparently fundamentally different in key respects from that previously put to FC lenders shortly before and potentially material information had allegedly not been disclosed to the FC lenders.Having looked back at the loans in question it could be alleged that some material facts and risks noted on TC were not disclosed on FC. Clearly, this should not happen / be allowed to happen. The examples mentioned all involved the same particular broker/sponsor. TC lenders may therefore have an advantage in terms of disclosures over FC lenders to the same company/ies and it might make sense to cross-check the information given with these dual borrowers - doing so has prompted me to offload some of my FC investments, another relevant factor being that they are now subordinated to the Thincats loans. Incidentally, I did query the highlighted issues with FC but have nothing positive to state about the response to date. Referring to no platform in particular, is it the case that a wish to maintain abject ignorance is the default mode to adopt where a platform is not FSA authorised/regulated (whereas some crowdfunding sites such as Seedrs are and any failures to disclose material facts and/or making any misleading statements to investors may prove to be actionable as is the case for listed entities - and thus failures to police effectively have more potential consequences)?
Edited by hr1424, 19 September 2012 - 06:54.