FastInvest: Time’s Up! A new investor legal action?

S4F Risk Management FastInvest @ Savings4Freedom
After Kuetzal and Envestio scams, I decided to stop investing in FastInvest. Since April they limited withdrawals. Now investors are getting ready for action.

Last January, Kuetzal and Envestio shutdown their fraudulent operations. After that, I decided to stop investing in FastInvest, taking into consideration the many doubts around the company loan portfolio that you can read here. The reality is that since April, FastInvest is limiting investors withdrawals of the available balance. Now, after 3 months, investors are tired of excuses and what to take action.

The Most Controversial P2P Platform

FastInvest is one of the most controversial P2P platforms in Europe. Since the first time I learned about the platform, it was impossible not to find multiple publications highlighting major problems with the company, the founders, and the loan originators. How did FastInvest managed to attract more than 41,000 investors since 2015? The reality is that until January 2020 FastInvest was able to survive every single wave of criticism and grow. However, in March the first warning signs from investors not being able to withdraw funds were shared in investors groups and since then a successive number of actions/excuses were presented.

  • In April 2020, FastInvest limited investors capacity to withdraw available funds.
  • In May 2020, FastInvest introduced a secondary market, a withdrawal fee of €1.5 and a remuneration bonus of 0.025% was added for overdue pending payouts.
  • In June 2020, FastInvest presented a six week moratorium on running loans.

What could be the reasons behind the platform problems?

Loan Originator Problems

Capital Invest is a Polish loan originator associated with FastInvest. We know this because the Capital Service Q1 2020 report (translated from Polish) clearly states that Capital Service is refinancing loans from both FastInvest and Mintos. The problem is that Capital Service is suspended since April in Mintos, and cannot repay back to investors. So, if Capital Service is not paying back Mintos investors, they are probably not paying back FastInvest loans either.

What to do if you are a FastInvest investor?

Unfortunately, not much. A group of investors started collecting information from all interested in proceed with a legal action. You can find the questionnaire here. And if you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.

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Conclusion

FastInvest is currently facing a liquidity crisis, probably because of massive withdraw requests from investors but also because of Capital Service payment problems. However, they are not transparent enough or too proud to present publicly such issues, creating a massive cloud around the company future. Taking into consideration all the past history of the platform, the sad reality is that if you, as an investor, wish to see something happen the information collection currently ongoing is your best option.

We, as investors, should do the same, as Killer Mike urged protesters to do in Atlanta: “plot, plan, strategize, organize and mobilize“. Then act!


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