My experience, $952.45 charged off, $2.97 recovered (Sept & Oct 2016), I must say I had expected to see a bit more than this trickle through.
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History has shown us that there is a degree of dogginess in the finance industry. Harmoney already have a stained track record when it comes to doing business by the rules.
Yes, there is a level of risk investing in p2p loans but anyone who buries their head in the sand and hopes for the best will potentially end up the same way as the people who lost billions of dollars from finance company collapses. It's still early days and only time will tell but never stop asking questions.
This type of over zealous marketing occurs every other week - in any/all markets that sell something...banks are notorious for it... If you read the details, Harmoney actually still required the correct process to occur, so I'm not sure how it relates to the discussion of debt collection?
Flumbphs, is the sound I've heard when others bury their heads in the sand, apparently you don't hear it if you do it ;)
Quite a different scenario from the financial collapse - not really seeing the correlation - you get to/must, choose what risk level you invest in, minimal change of hands, and it's very clear where your money has gone?
The risk level for each loan is calculated by Harmoney's own formula and there is nothing stopping the borrower from using the loan for a different purpose than originally indicated. It's not quite black on white as it seems.
This time is different! You hear this a lot but I don't believe the hype.
We do sign up knowing that we will never know loan/borrower specific detail but now that the platform has existed for a longer period I do think that more portfolio level experience and information could be given - perhaps legal status or actual recoveries by time by risk grade - so that people can start to consider the full life cycle. This would also address to some extent the uncertainty that is created by the information vacuum at the moment (and as mentioned in another post - the past experience of finance industry in general)
As an aside, knowing more (at summary level) about how successful Harmoney and its agents push on this part of the process enables us to consider in more detail what is acceptable risk from an investment (and moral) perspective. When I see some of the loans being listed I wonder if the borrowers are either financially naive or are starting to test/believe/figure out that the Platform is a soft touch. And when I see relatively safe risk categories being assigned to these loans I wonder also if the right balance has been struck - and it is only at the very end of the (sometime messy and protracted) process that we know for sure.
P2P investing is in its infancy in NZ, no one can predict how it will play out in the next few years. Hopefully, history will not repeat itself again.