Linked Finance - Peer to Peer Lending

Leo

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10,650
they continue to rely on very poor security for the loans advanced, and their autobid system is near dangerous for those who don't really understand the risks associated to lending to businesses.
Agreed. I contacted them after the conservative auto-bid settings I had in place resulted in a bid on a company that purported to be in business for decades yet a quick director check showed a stream of company dissolutions and subsequent formations every couple of years with variations on the name. Most loans are filling via auto-bids at the moment, so I've started withdrawing the small money I have there.
 

MrEarl

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1,811
Agreed. I contacted them after the conservative auto-bid settings I had in place resulted in a bid on a company that purported to be in business for decades yet a quick director check showed a stream of company dissolutions and subsequent formations every couple of years with variations on the name. Most loans are filling via auto-bids at the moment, so I've started withdrawing the small money I have there.
Like you, I've begun to reduce my funds with Linked Finance and expect that I'll continue to do until all funds are out, unless things improve quickly.

Watch out for the charges btw, if you withdraw more than four times a year ;)
 
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MrEarl

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Hello,

I see that LF are now offering 5 year loans.

This makes me even more concerned, given:
  1. How poor their arrears collection appears to be,
  2. Their due diligence on borrowers has previously been,
  3. The absence of any kind of tangible security for the loans.

Let the Buyer Beware isn't good enough here, and yet, the Central Bank is no where to be seen!!!


.
 
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RedOnion

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3,816
. Yet, the Central Bank, is no where to be seen!!!
Unfortunately, not much CBI can do as the sector is currently completely unregulated here. They did issue a warning back in June 2014 which called out a lot of the concerns you have.
There was talk about bringing in legislation to regulate, but there's also EU level legislation being drafted, so nothing will happen fast. The dept of finance did publish a consultation paper last year, which again echoed what you're saying.
 

MrEarl

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Hello,

So our CB maneged to issue a warning six years ago, but have since done little more. That's shocking, when we talk about protecting consumers etc.
 

RedOnion

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I agree, but there's nothing they can do. There's no legislation, so the CB would be 'sticking their nose in' if they did anything else. They have absolutely no powers to look at individual providers without legislation, unless that provider also performs regulated functions.

For clarity, my comments are in relation to the entire crowdfunding sector, and not any individual platform.
 

MrEarl

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Hello,

While I appreciate the point that you are making, the Central Bank, the ECB and the Irish Government (through the Dept of Finance etc), all engage regularly.

If they had a desire to do something, it could have been done a long time ago.
 
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