Yes to my undying shame I signed up to a small minibond when I first got involved with P2P.
I must have been seduced by their TV advertising and having not yet discovered this forum I wasn't really switched on about where best to invest.
So far the company hasn't gone bust and pay out interest on the due dates.
I calculated that the interest received was 20% short though and on querying this was advised that it was with-holding tax.
As I'm paying tax on P2P anyway it comes out in the wash and I just have to put the income in a different box on the SA tax return.
I will cash in my minibond on expiry - and am hoping that with judicial use of IFISAs I'll be out of the taxman's clutches by then anyway.
W claim that no lenders have lost money so far although that does sound a little familiar. I'm hoping that this remains the case as without a SM I'm stuck with them for the duration.
To be fair to Wellesley they are only following the guidelines on this one (it is sold as a bond). However, I also have issues with some of the ways they have handled their business (in particular the eye watering payments to executives at a fragile stage of business growth). However, from a customer perspective, customer service has been best of all eight p2p sites I invest in and the platform works well. They have also been reliable with payments and transparency has improved. The jury is out on this one although my hope is this management team appear competent and experienced. This once again, is a bonus compared with other sites.