LendingCROWD NZ P2P

[Mike64]

another >$700 write-off today for a secured!!! C1 loan. Not even $1 was recovered.
Ridiculously they still claim to be the number one favorite P2P lender. Yeah sure and all on the head and damage of us investors. They don't give a s..t about us investors as long as they maximize their earnings only. There default recovery is the lowest performance I've ever seen, they don't care at all, it's not their losses.

I start getting now really angry about them!
I'm also pretty certain that they frequently read here on the forum and I expect a proper explanation about recovery strategies, why so low recoveries and more from Lending Crowd. Will see if they have the guts to do so.
I could send them an email complaint of course but I'm sure there would only come back some meaningless bla-bla-bla.

Lending Crowd, I want to see you commenting this complaint here in public and meaningful!

[Saamee]

@Mike64

No one had a gun to your head and made you Invest in THAT loan you refer too!

It was only YOU that made that choice.

The loan you talk about must have been with at least a Car as security.

I now only invest in Loans with Property as security - Why? Because I have never lost invested funds from a loan with 100% property as security.

Perhaps it is time for you to just take all your money out of LC - sounds like your time with them is done!!

[Mike64]

hi Saamee,

yes of course you're totally right in what you say. It's my responsibility only! to decide in what I invest, that goes without saying.
BUT: Their loan recovery performance is nevertheless extremely low. Secured means secured, ZERO recovery should never happen to a secured loan at all. For that it is meant to be secured.
For an unsecured loan it is clear from the beginning what you would (not) get. But not from a secured one.

Even if it is secured with a car only and with all what can happen to the car over the loan time, ZERO recovery is not right, that stinks badly and it is very badly and very investor-careless managed.
They should have a much stronger borrower diligence in place and probably get rid of their low performers working there.

[Mike64]

I'm not done with them until I see a proper improvement in their loan- and their low performer employee management.
I was asked to provide a direct email complaint instead of the publicly one here which I did in a much deeper worked out way then previously here.

[Mike64]

I'll shortly start to dig through all their write-off emails (secured loans only) in order to measure their recovery performance of recovered principal against open recovery principal for secured loans which is unfortunately not reported like this. I bet this is not better then 20-25% in average which is in my view a damn low recovery performance for a secured loan.
I gonna provide my results here when sorted. It's the remaining principal recoverered in default what matters, not the total principal received after recovery which in result is previously principal received+recovered principal as they report.
The normal received principal doesn't intrest me in defaulted loans, that's in the standard statistics. I want to see the recovery of the pending to get their performance of pending principal recovery in %!

In my view after x years with them is, that they run a team of damn low-performers, from loan sourcing until default recovery being nice to borrowers only but not to us investors.

No Saamee, I'm not done with them, I'm not someone who gives up easily. I just got committed to get my hands on digging into it!!! Their damn low performance has to improve significantly for all of us investors, I can't stand low performers without having tried hard to put them on a performance improvement plan and seeing the results after some time!

[Mike64]

I'm giving them a chance to improve investor satisfaction significantly. But I wouldn't hesitate to go to the press if no improvements are visible after some time. There are plenty of loan statistics and loan performance indicators to go public with.

I don't want to get there, I want them to get to a proper performance level. Going public would be my last resort in case they don't want to improve their performance.

[Saamee]

Well that is it!!

Now LC is closing as of 15th Nov 23....

[kiwical]

That's the end of the true p2p lenders in New Zealand I guess?

Still have squirrel and zagga, but they are slightly different offerings.
I just hope LC truly do put in the effort they say they are going to as far as still chasing down defaulters etc now that they are closing......

[Bjauck]

The P2P sector in conjunction with FMA didn’t bother getting a ruling from the IRD for retail investors as to tax deductibility of loan notes write-offs. They could have sought a ruling on a blended return for retail investors (of gross interest minus commission and minus capital write offs) which could then have been subject to RWT. I think that is what happened for P2P in the UK. Retail portfolio investors in NZ remain - as always - an after-thought.

[kiwical]

Anyone prepared to take a guess when the loans will actually actually stop appearing? There was a loan offered just now. 2 days after they are supposed to have stopped?