Jeansloans

hr1424, on 24 November 2012 - 15:53, said:

Yes ...........The first loan I mentioned is subject to an additional 2pc interest 'while in arrears'. The second was refactored at an additional 2pc and the third will also earn an extra 2pc from the end of August.

There have been no defaults reported on TC but the reality is there almost certainly should have been.
I have 14 loans and my experience is as follows.
In chronological order:

• My first loan (36 months) repaid in full for 17 months but recently the borrower asked for a repayment holiday through the winter due to cashflow problems. An agreement was then reached and they are now on half payments
  
• My third loan made 10 repayments on time, then nothing for three months.  The loan was subsequently "refactored" with a new loan replacing the original.  The first repayment of the new loan was made on time, but then lenders were informed of further problems and the second repayment was missed.  One further payment has now been received.
  
• My fourth loan was an interest only loan for 12 months with the capital due to be repaid in full in August 2012.  Interest repayments have always been sporadic and they stopped altogether in May 2012.  The capital repayment has obviously not been made and the sponsor simply explains they are monitoring the situation and hope to report back soon.

I became really frustrated at the length of time it takes to disperse funds.  One particular loan took nearly three months to complete, all the while my funds lying idle.  Many other loans have been finalised but fail to go ahead for one reason or another.  Funds can sit for weeks and weeks in a "suspense account" before being returned.
As SL75 has mentioned, the platform is a bit of a shambles because of the inadequate technical systems.

I don't see myself participating in any new TC loans for the foreseeable future. I have been withdrawing my returns for some months now, though I must say, I particularly dislike having to write the emails each month asking to have my money back.

Did I dream it, or did I read somewhere - either on the Funding Circle FAQs section (which seems to have disappeared) or on this forum that cashback and/or money from selling loan parts is not liable for tax?  I know many of you here are expert on the P2P tax situation and assume this has been discussed before, but can't find the answer. Particularly relevant at the moment given the current 1.5pc cashback on FC. Thanks in advance.

One of my borrowers died the day the loan funds were deposited into his account. The comments field showed the family used the Zopa loan to pay off other debts. Zopa pointed out the bank balance should have been used to pay pro rata all debts, including Zopa. The family eventually paid 50 per cent of the loan back and the matter came to an end.

I've now been in on four loans. It takes them a while to underwrite each one after closing which is probably a good thing. I felt nervous about it at first, though they issue very detailed information on the firms borrowing and each one has security. You are issued with a certificate for each loan but the information on repayments after the loans have been dispersed is currently quite sparce and awaiting a website upgrade. All repayments have been made on time on my four loans. I have interest rates between 12.3 and 14.9 on my four thousand investment. Kevin Caley who I believe is the CEO is very communicative and very helpful and friendly.
Feel free to ask me further questions if you have any.