The Wellesley.

[Field Marshal Dr. Opti]

Received a curt email this morning informing me that not only will I not receive the interest I am due on the 8th May, but my original investment is now worth considerably less. .......possibly worthless.

I knew of the risks and accept them, but as soon as any financial institution fails to pay what it should then the writing is on the wall.

It seems that the Wellesley has been lending money to people who can't repay it. Sounds all too familiar?

[Viral_Jim]

I knew of the risks and accept them, but as soon as any financial institution fails to pay what it should then the writing is on the wall.

I've never invested in P2P so not sure how it works, does you money get pooled with x thousand others, getting a slice of the overall return,  or do you lend specifically to Joe Bloggs Ltd. and if they don't pay you dont get paid?

[Field Marshal Dr. Opti]

I knew of the risks and accept them, but as soon as any financial institution fails to pay what it should then the writing is on the wall.

I've never invested in P2P so not sure how it works, does you money get pooled with x thousand others, getting a slice of the overall return,  or do you lend specifically to Joe Bloggs Ltd. and if they don't pay you dont get paid?

I think The Wellesley is going to go 'tits up'

Essentially they lend to people who can't get a loan from the banks. They charge high rates of interest and pay better rates of interest so long as the borrower does not default.......which they do in large numbers.

It seems the Wellesley has too much 'toxic debt' at present and I'm going to help pay for it along with other 'investors'


Until recently they claimed that no investor had lost out and that any bad debts were covered by profits.This is no longer true.

[STEMO]

Saw an ad for this lot a while back. I seem to remember the headline rate being around 6%, so I guessed there must be a high level of risk.

[STEMO]

Seems your not the only one who's been disappointed

https://uk.trustpilot.com/review/wellesley.co.uk

[Mister Rog]

I've never been one for more "interesting" forms of investment

Maybe you should just play the National Lottery ?   

[Viral_Jim]

As usual, the greed no doubt took hold.

Their best rate seems to be about 6% so even going after "vanilla" secured loans such as used car finance (10.9% for example) would have netted them a healthy spread with comparatively little risk to their investors.

D!cks.

[biggriffin]

There is a correct response in those trust pilot reviews,, regarding p2p and it's correct p2p isn't risk free, it's clearly mentioned, so if you want 6% return, there's a risk you could lose out,, remember your Investments can go up as well as down,also p2p, is were people's go who can't borrow from banks because of bad credit...

3rd review down.
https://uk.trustpilot.com/review/wellesley.co.uk

[Field Marshal Dr. Opti]

Seems your not the only one who's been disappointed

https://uk.trustpilot.com/review/wellesley.co.uk

I suppose I'm fortunate that my investment matures on 8th May so hopefully there is not much time for further damage. We'll see.

Lending to wide boys and ne'er do wells always had the potential to go wrong.

[Field Marshal Dr. Opti]

There is the possibility of contagion.

People lose part or all of their investment so new people don't invest. Less money to cover borrowers that default.......etc.

[Sir Tigger KC]

Their website is still up and running, so presumably they are still happily taking peoples money.   

[Field Marshal Dr. Opti]

Their website is still up and running, so presumably they are still happily taking peoples money.   

Similar to DFS taking money from people for a Sofa they would never receive.

[Shackeng]

My view is that if something sounds too good, it probably isn't good at all. Our investment manager, with our portfolio selection of low to medium risk, achieved 25% growth over the last 2 years!:o

[Migv6 le Frog Fan]

Its all about the fundamentals. If the figures don't add up, don't invest.The head must always rule the optimistic heart when investing.Shares in the company I work for have risen around 12% since the start of the year. I kind of wish I hadnt cashed in, but then again 325p to 495p in two and a half years wasnt a bad return.And theres always the share option to come.
Wish I had bought Sainsburys shares on Friday, but hindsight knows everything.

[STEMO]

Their website is still up and running, so presumably they are still happily taking peoples money.   

Well of course they are, there is no risk to them. They take people's money, 'invest' it, take a cut and pay it back with some interest. Their capital is not only not at risk, it is non-existent.