The Money Platform Avis 474

Réponse de The Money Platform

Actualisé le 10 oct. 2023

Hi Paul,

Thanks for raising your concerns. We have already discussed this loan with you but appreciate your frustration on your lending experience here. We are hugely grateful for you raising this and we will use this an opportunity to clearly show the risks involved with lending on The Money Platform.

We publish an annual Outcome Statement, which shows possible returns and the expected rate of default. For example in the current year we are forecasting a 15.4% Return after losses and fees, which is based off a 9.7% Delinquency Rate and a 7.8% Default rate. Over the last 3 years when we have followed the Outcome Statement publishing rules we have exceeded the Forecast Return, however lenders should be prudent of the risks. You can read more here: https://themoneyplatform.com/outcomes-statement

As you show in your message, these loans are:

"Risk Category = High Risk"

There is a chance of a borrower missing payments and defaulting. When you started lending and signed up with us you expressly acknowledged this risk, and noted the risk of losing all your money. Our risk warnings are prominently displayed on our website. This is a 'High Risk' investment and as you note in your post - it is not Asset Backed. Our terms state that the platform has responsibility for managing collections, this remains the case and we do not share individual details between borrowers and lenders. As far as we know you are not a regulated debt collector and this would be a breach of our terms.

94% of Lenders who have lent over 10 loans have made a profit in the last 5 years.
98% of lenders who have invested in more than 50 loans are in profit in the last 5 years.

This shows that there is a risk of a capital loss. You have invested in a small number of loans and some have repaid, whilst some, including this (from 14/06/2023) one have not. It is frustrating for you if you do end up losing money from your investment in The Money Platform, our lenders understand the risks of losses and are required to take a test to prove they understand the risks, and so, whilst unfortunate and an outcome we are dedicated to preventing, it should not come as a surprise. Not all your loans are complete right now and so we would encourage patience whilst the collections process continues.

We as a company only get paid when the lender get's paid via repayment of a loan. This is not a 'con'.

On the Loan you mention (Loan 5f07a165553 from 14/06/2023): This loan is still in collections and we are working with the customer to ensure full payment.

As you may know, we started lending in 2016, since when we have issued over 70,000 loans. We continue to welcome new lenders, and c.20% of our current lenders started lending with us over 5 years’ ago. Bear in mind that diversification is a key factor in P2P lending, spreading your investment across many loans to reduce risk. As an illustration, our most recent analysis shows that around 94% of our lenders who have made more than 10 loans are in profit on their TMP lending account (note 1). Note 1: TMP’s internal analysis as at 4/9/23, unaudited. Key assumptions: (1) all loans written in the last 5 years since July 2018, and (2) only loans > 6 months since loan start date.

As a lender, any loan you make is unsecured. Your capital is at risk and you could lose all your money. You should only lend what you can afford. Please read our lenders' risk statement and outcomes statement and FAQs. Lenders are not covered by the Financial Services Compensation Scheme.