Two Issues Currently Evolving on P2P Lending Marketplaces

This week some investors on the p2p lending marketplaces Viventor, Grupeer and Mintos are affected by issues that hinder the normal procedures on these marketplaces.

Viventor started to display the following warning message yesterday (visible only if you click on an affected loan)

Aforti Viventor
(Screenshot from Viventor.com)

As a result, multiple Aforti loans were on offer on the secondary market for 5 to 15% discount (at one point in time I saw 35% discount)

Asked for a comment, Viventor CEO Andrius Bolsaitis told P2P-Banking.com:

According to information that we have now, they have some cash management issues, we are in discussions with them and hope to resolve the situation soon. I will be personally meeting with their managers tomorrow in Warsaw and will have more updates then.

Update 14:02: Apparently Mintos has now suspended trading of Aforti loans on the secondary market. I reached out this morning to Mintos’ management for a comment on how they see the situation with Aforti.

Update 14:42: Reply from Mintos CEO:

Hi … ,

Thank you for your email.Aforti is overdue on passing to Mintos payments which Aforti has received from borrowers and payment for buybacks. Thus, we are suspending repayments and buybacks. We are meeting Aforti tomorrow in Warsaw and will update investors accordingly. Below excerpt from communication to all investors:
Mintos has suspended automatic repayments and buybacks for loans originated by Aforti Finance on our marketplace (EUR and PLN).
The decision was made based on Aforti Finance’s overdue transfers of borrower’s payments to the Mintos marketplace.

In order to protect the interests of our investors, all loans issued by Aforti Finance have been removed from the primary and secondary markets of the Mintos marketplace. This means you cannot buy or sell Aforti Finance loans, effective immediately until further notice.

Update 16:02: Statement from Aforti Holding:

Dear Sir,

In response to the questions regarding the message released by Viventor, we would like to inform you following.

We are currently at the stage of closing cooperation with the Viventor platform, what has been announced to Viventor. Situation suggested by Viventor is a result  of  change in Aforti Finance S.A business strategy. Our decision is determined by technical difficulties in cooperation with  Viventor platform. Also cause most workload has to be done manually, our operational risk increased significantly. This is what we want to avoid, cause AFORTI business model and operational procedures are going rather in the direction of using API to automatize processes and to minimize human errors.

It’s also worth to add, that we have not been using  Viventor platform for new loans for about two last months, as a result of mentioned above decision. Of course Viventor receives daily financial transfers, so we do not see any reason for such a message.

Due to the fact that for tomorrow (Thursday, August the 8th ) we have scheduled a meeting with the Viventor, we believe all misunderstandings will be clarified.

Update Aug. 8th: the meetings are at 12:00/13:00 (Warsaw time)

Update Aug. 8th: Debitum Network says investors on the Debitum platform are not affected as all Aforti loans were bought back on July 25th

Update Aug 9th: from Mintos

Update Aug 9th: by Viventor

As previously announced the meeting with Aforti took place in Warsaw. The parties found a solution with regard to the technical issues. We consider the solution satisfactory for both sides and expect all issues to be resolved during next week.

Update Aug. 12th: Mintos now says they had an agreement with Aforti since January 2019, due to which Aforti would not place any new loans on the primary market. Strangely they only communicate that agreement now. Why not in January?

Our team is once again meeting with Aforti Finance in Warsaw, Poland today to continue to work out the details of last week’s initiated solution for Aforti Finance to resume transferring borrower repayments to us for distribution among investors.

We aim to release the next more detailed update tomorrow.

Until then we thank you for your patience, as well as the questions to our Investors Service team and comments on the blog and social media. We are preparing to release answers to them as soon as we handle the current priority of resuming payments.

We also wish to remind that Aforti Finance has not been placing loans on the Mintos primary market since January 2019. It was a mutual agreement with Aforti Finance following a weaker than expected loan performance and IT system related issues. Aforti Finance has continued servicing the loans since then and the total Aforti outstanding loan portfolio on the Mintos marketplace has decreased from EUR 5.7 million on December 31, 2018 to current EUR 2.2 million as of August 12, 2019. In light of adverse changes in the mood on the Polish securitization and bond market as well as our due diligence insights on the company’s internal arrangements changes, we reflected our risk precautions by downgrading Aforti to C+ in March 2019.

At this stage we remain committed to working with Aforti Finance to continue servicing loans and passing borrower repayments to investors on the Mintos marketplace as soon as possible.

Update Aug. 12th: I have analysed the Mintos loan data and came to the result that the last Aforti loan, was listed on January 2nd on the Mintos primary market.

Update Aug. 13th: Several investors report that they received a repayment incl. late fees on this Aforti loan on Viventor today.

Update Aug. 14th: Mintos has announced that Aforti payments have resumed as of today. Aforti loans on the secondary market stay suspended.

 


Earlier this week on Monday, it became evident that the Lithuanian central bank had suspended the operations of Satchelpay (source), which Grupeer used as one of two ways for deposits by investors. From Tuesday onwards Grupeer asked investors to use the alternate deposit method via Baltic international bank only and said that they will add new payment providers this week.

Asked by P2P-Banking what the status of investor payments is, that were made shortly before or on the day of suspension to Satchelpay, a Grupeer contact told P2P-Banking:

At the moment we are in contact with the bank and have received the information that all transferred funds will be returned to the account of the sender. However, we cannot provide you with the exact terms.
More detailed information will follow.

Hopefully both incidents will be resolved satisfactorily for investors. On both issues I see room for improvement on communications with investors.

International P2P Lending Volumes July 2019

23 thoughts on “Two Issues Currently Evolving on P2P Lending Marketplaces

    • Because it’s probably hard for the unlicensed “investment” platforms to get bank accounts. So whoever opens it for them they accept it.

      “Investment” in quotes because it’s a purchase of loans, which legally is almost the same thing as the purchase of chairs.

    • Thx I am aware of that. meanwhile Mintos confirmed they suspended investing and trading of Aforti loans. See update above.

      • Just good to see that Mintos saw situation deteriorating and warned investors, shows that the rating system has added value. I personally sold all Aforti loans after reading that update.

  1. Aforti statement is not true. They were new loans on Viventor in July 2019 issued by Aforti.

  2. Thanks for the information. I have late loans on Viventor, from other originator than Aforti, and have asked about these, but they have not responded after two days. That is quite frustrating, would you be able to provide direct email ti their CEO? Best regards

  3. Interesting when Mintos said since Jan there were no new loans issued by Aforti. Back in March I have asked Aforti to comment on the downgraded rating as it appeared weird comparing their financial statement with some other lenders. They said that they have not observed lowered interest on their loans on Mintos but that was in March and they supposed to not issue any new loans since Jan.

    On the 14th they will publish a new financial statement for 2nd quarter. I wonder what Mintos will say in tomorrows statement. If Aforti won’t go bust might be worth considering a common law suit if whatever they agreed with Mintos won’t be satisfactory

    attaching the emails in PL:

    Me:
    w nawiązaniu do obniżenia ratingu dla Aforti na platformie Mintos z B to C+.
    Czy Aforti zgadza sięz taką decyzją Mintosa, jaki skomentowali by to państwo?
    Porównując inne spółki na platformie Mintos, uważam że jest to krzywdząca ocena, która potencjalnie wpłynie
    na zainteresowanie pożyczkami Aforti i może wymusić podwyżkę oprocentowania.

    Aforti:
    Szanowny Panie,

    Dziękujemy za przesłanie maila. Informujemy iż nie komentujemy decyzji firmy Mintos. Na chwilę obecna nie zauważyliśmy obniżonego zainteresowania pożyczkami Aforti Finance na platformie Mintos, decyzja ta nie wpłynęła także na zmianę oprocentowania pożyczek Aforti Finance dostępnych na platformie Mintos. Platforma Mintos nie jest jedyna platforma typu peer to peer z której korzysta Aforti Finance S.A.. Platformy peer to peer sa jednym z trzech żródeł finansowania akcji pożyczkowej Aforti Finance S.A.

    • Should any reader have an Aforti loan in his Mintos portfolio with a ‘listed’ date later than January 2019, please post the loan id. Thx

      • Thanks, just another confirmation of the quality of Aforti’s replies

  4. Does anyone have information with Schatlepay’s payments?
    Have you already received your payments?

Leave a Reply

Your email address will not be published. Required fields are marked *

*
*
Website