{"id":8217,"date":"2020-08-11T08:00:00","date_gmt":"2020-08-11T08:00:00","guid":{"rendered":"https:\/\/savingsforfreedom.com\/?p=8217"},"modified":"2020-08-12T09:26:44","modified_gmt":"2020-08-12T09:26:44","slug":"mintos-a-growing-investors-nightmare","status":"publish","type":"post","link":"https:\/\/savingsforfreedom.com\/blog\/2020\/08\/11\/mintos-a-growing-investors-nightmare\/","title":{"rendered":"Mintos: A Growing Investors Nightmare?"},"content":{"rendered":"\n

Mintos is not by change the largest and most popular European P2P lending marketplace. Its success story triggered the growth of an entire industry in the Baltics, not without failures. Now, more than ever, Mintos faces a moment of true where alignment with loan originators over investors can bring black clouds. A Mintos update.<\/em><\/p>\n\n\n\n<\/a>\n\n\n\n

A Quick Overview of Mintos in 2020<\/h2>\n\n\n\n

Kristaps Mors latest post is a masterpiece in sharing light on Mintos in 2020: 17 failed Loan Originators, \u20ac118 million at risk<\/a><\/strong>. Any investor considering P2P as an asset class must read this and get aware of the reality behind the most successful P2P lending marketplace. P2P lending investments are not passive and require a tremendous amount of work to study loan originators, financials and even if you do everything right, you still have your capital at risk. <\/p>\n\n\n\n<\/a>\n\n\n\n

Capital Service as Example<\/h2>\n\n\n\n

Recently Capital Service, a Polish loan originator sent a letter to investors proposing a debt haircut of 40%, a grace period of 2 years and a period of 8 years to reimburse the remaining 60%. You don’t believe me? Read the letter by yourself<\/a><\/strong>!<\/p>\n\n\n\n

“Dear Investors, due to this very unpredictable market situation caused by COVID-19, we kindly ask you for your understanding and acceptance of the proposed debt repayment plan. The debt repayment plan assumes a reduction of debt by 40%, repayment within 8 years with a 2-year grace period. We believe that only in this way we are able to survive this very difficult time for us, protect jobs and the company in order to generate profits for Shareholders and Investors in the future”.<\/p>Kazimierz Dzie\u0142ak, CEO of Capital Service S.A.<\/cite><\/blockquote>\n\n\n\n

The most concerning message in Capital Service letter is that they state investors lent money directly to them. That is not true. Investors bought direct claims from thousands of Polish individuals who still have the money that needs to be collected. Capital Service works only as an agent and debt collector. This decision will trigger court litigation for sure, since no other loan originator on Mintos has suggested anything like Capital Service did. And maybe because of these growing problems, Mintos decided to change the user agreement with direct implications on these type of events.<\/p>\n\n\n\n<\/a>\n\n\n\n

Changes to Mintos User Agreement<\/h2>\n\n\n\n

Mintos published a new User Agreement. Make sure you are aware of the details.<\/p>\n\n\n\n

Mintos New User Agreement <\/a><\/div><\/div><\/div>\n\n\n\n

Some highlights on changes:<\/p>\n\n\n\n