Grupeer News - Is Grupeer another Scam?
Grupeer is currently facing serious accusations about the legitimacy of their loan originators (Monetria, Lion Lender, Epic Cash).
Latest developments around Grupeer
- 30/06/2020 - Grupeer publishes its portfolio performance audit where the platform "promises" to repay certain investor groups. Investors that have invested in loans from Dziesiatka Finanse shall be repaid first. This is questionable as the lender has been suspended from Mintos just a few weeks ago. Grupeer claims that the fourth group of lenders avoid communication with Grupeer. Those lenders have, however, shown support for investors throughout the last months. It's likely that those lenders will repay investors directly rather than through Grupeer whose bank accounts had been frozen. Grupeer also does not address fake projects and puts those lenders under the "fifth group" of companies that face "financial difficulties".
- 15/06/2020 - Grupeer's investors received an email from CEO Alla Kisika where she is requesting to update your KYC questionnaire. We see this as yet another time-buying communication.
- 20/05/2020 - Grupeer's investors received an email from CEO Alla Kisika where she is addressing only a few of the critical questions.
- 14/04/2020 - DYNINNO Financial Techologies, one of the loan originators on Gruppeer, published a statement in the Grupeer Fellows group, where the company ensures investors that they are able to repay any outstanding debt. Ibancar also raised their support for investors in one of the Viventor's webpodcasts. Unfortunately, it appears like Grupeer isn't communicating with its loan originators.
- 13/04/2020 - Grupeer publishes a statement on Grupeer’s blog, the platform refers to its terms and conditions that allow extending the loan repayment schedule at any time. This statement does not address any critical question. It appears like Grupeer is trying to defend themselves legally.
- 31/03/2020 - Grupeer suspended all payments to investors. Grupeer is blaming the declaration of an emergency state in the European Union.
- According to testimonials and LinkedIn updates, Grupeer has laid off several staff members in the recent days.
- Investors exposed the Promenada Project as a fake.
- Grupeer's loan originator Finsputnik stopped offering the buyback guarantee.
- Grupeer has recenty changes their banking providers without much explanation. (Envestio and Monethera showed similar behavior before shutting down.)
- Issues with withdrawals and late payments are increasing.
What you can do
- Download your account statement since you have joined Grupeer: grupeer.com/account-statement
- Download the excel list of all your investments: grupeer.com/my-investments (there is a “download button” under the filter options)
- Download every loan agreement: grupeer.com/my-investments (download all PDF files manually or in bulk with the Chrome extension simple mass downloader)
- Take a screenshot of your profile page: grupeer.com/identification
- Take a screenshot of your deposit page where it shows your investor ID: grupeer.com/deposits
- Download the overview of your current account status: grupeer.com/overview
- Download the Grupeer site to your local folder so you can view all the information offline. You can use any software. Website copier from httrack.com/ can be downloaded for free.
- Join the Telegram group (currently over 3,300 investors have joined) to coordinate next legal steps
- Download all the relevant documents in order to participate in the lawsuit.
- The cost of the lawsuit is 1.8% of your claim (min. €25)
- You can follow the legal steps against Grupeer in chronological order here.
- You can ask questions regarding the lawsuit in Slido.
What you should not be doing
- Harassing and threatening employees of Grupeer or their family members
- Collaborating individually with anyone who promises a quick resolution of this case
Links to further resources:
- Latvian police
- Latvian consumer protection
- Latvian financial inspection
- Ireland’s national police and security service
We do not suggest registering or investing at the platform until this situation is resolved.
The chances are that you might retrieve some of your money by joining the lawsuit against Grupeer, as not all projects were fake and some loan originators have stopped paying back to Grupeer.
Please note that our Grupeer review was conducted months before the platform suspended all withdrawal requests. It does not reflect the current problems Grupeer is facing.
Grupeer is a Latvian peer-to-peer (P2P) lending platform that lists business and development loans protected by the 60 day buyback guarantee. Investors choose Grupeer for its average interest of 13% per year, its high availability of loans, and good diversification options through its Auto Invest tool.
Grupeer in Numbers
Grupeer’s statistics will give you a quick overview of the company’s past performance.
|Investor's earnings:||+ €3.8 M|
|Total loan value:||+ €43 M|
|Amount of investors:||+ 24,000|
|Loss of investor's money:||0%|
|Average portfolio size:||€3,446|
|Latest financial report:|
Grupeer has grown exponentially since it was founded in 2016. With over 20,000 investors and a total loan value exceeding €66 million, Grupeer certainly isn’t a small P2P lending platform anymore.
Despite the number of investors on the platform continuing to grow , Grupeer isn’t a profitable platform at the moment. While this isn’t necessarily a red flag as many of the leading P2P lending platforms in the Baltics weren’t profitable the first few years of operations, this is something you should keep in mind.
Grupeer User Requirements
All new users on Grupeer must be over 18 years old and hold a bank account within any of the countries in the European Economic Area, or in Switzerland, Norway, or Liechtenstein.
While there are no limitations regarding your residency, you do need to be able to pass Grupeer’s verification process, which includes uploading a copy of your ID if you want to access all of Grupeer’s features.
The verification takes a maximum of two days, and transferring money to Grupeer from our N26 account also took two days.
Risk and Returns Involved with Grupeer
There are always risks when investing your money in P2P loans, which is why it’s important to know how your investment is protected. While some platforms have protection, the type of protection the platform offers depends on the type of loans available. For example, EstateGuru’s real estate loans are secured by a mortgage. Meanwhile, other platforms - like Bondora or Fellow Finance - don’t offer any protection at all.
When investing on Grupeer, you’re investing in business or development loans. While on Monethera or Crowdestor the loan description includes information about the protection scheme, such as commercial collateral or mortgage, most of the time you’ll find that this information isn’t displayed on Grupeer.
Grupeer’s Buyback Guarantee
All P2P loans on Grupeer are secured by a buyback guarantee. Grupeer’s buyback guarantee is activated when loans are more than 60 days delayed. The loan originator buys investors’ claims back and refunds them the outstanding balance as well as the delayed interest.
This is important as not all P2P platforms have the same buyback guarantee. Some loan originators on Mintos don’t pay out the interest for delayed payments.
Note that investors should do their own due diligence about individual loan originators. The buyback isn't covered by Grupeer itself, which is why it's important to research the loan originators and evaluate whether the company is even able to cover the buyback guarantee.
Is Grupeer Safe?
When reviewing P2P lending platforms, we always look at the background of key employees as well as the platform’s terms and conditions. This due diligence took us several hours, and here is what we have found.
Who Runs the Company?
Alla has been leading Grupeer as the CEO since 2016. Previously she has worked as a project manager in multiple companies, mainly in the UK and Australia. According to Grupeer's customer support, Alla is also the legal owner of the company.
Andrejs is the second co-founder of Grupeer. He has over 20 years of experience in the development of real estate projects. Currently, Andrejs is a Member of the Board at Grupper, and he is involved in the development of the company’s strategy.
Where is Grupeer based?
Initially, Grupeer was registered in Latvia as Grupeer SIA, and in the middle of 2018, the platform registered Grupeer Ltd. in Ireland. This strategic decision was made due to Ireland’s friendly jurisdiction for fintech companies. The country actively promotes the development of Fintech, paytech, and other sectors. Ireland offers guidance and is open to discussions and development of new regulations, which are required to accommodate the innovative solutions and products.
“We want to secure a stable growth of our company, and that’s why we moved to the country with more stable regulation.” - Olga Novikova, Communication Manager @Grupeer
Are there any Suspicious Terms and Conditions?
Most of the investors don’t read the terms and conditions. We believe that investors should be aware of their rights when it comes to investing in P2P lending. As the market is currently unregulated, it’s important to read and understand the terms of individual platforms. We have looked into Grupeer’s terms and here is what we have found:
If you consider investing more than €50.000 in Grupeer, you will be asked to submit a document that confirms the origin of your funds.
European banks usually follow the same procedure when depositing a larger amount of money. We haven’t seen this clause in any of the P2P lending platforms we have reviewed so far. We see it as an additional protection layer that should prevent money laundering.
Grupeer states that your funds are stored on Grupeer's accounts seperated from Grupeer's property.
It does not explicitly state that your funds are stored in segregated bank accounts. Currently Grupeer's banking provider is licenced Lithuanian provider called NexPay UAB.
It’s important to mention that the Buyback Guarantee isn’t provided by Grupeer but by the loan originator. In section 7.10, Grupeer states, if repayment is delayed for more than 60 days, the loan originator will buy back the claim.
If you are wondering whether you will also receive the accrued interest, the answer is yes. Loan originators that provided the buyback guarantee will pay you the accrued interest for delayed payments. You can read more about it in section 1.4. In your loan assignment.
Note that all loan originators currently offer the buyback guarantee. You can view them in the loan originator section on Grupeer’s website.
Grupeer reserves the right to charge investors fees for their services. At the moment, there are no fees for investors; however, the platform reserves the right to change this in the future.
As we write this Grupeer review, we have had a look at the Fees section of the website, which unfortunately didn’t work. We have notified Grupeer about this glitch, and the support shared with us that Grupeer is revamping the website to make it more user-friendly and transparent.
P2P lending isn’t risk-free, and you might lose all of your investments. Grupeer isn’t liable for any of your actions on their website. Grupeer is solely the facilitator of the transactions. Investors sign the loan agreements directly with the assignor.
This is the case with most P2P lending sites. Investors should be aware of the risks, connected to P2P lending. There are no guarantees that you will receive the expected interest rate. In the worst-case scenario, you might lose your investments as it was the case with Envestio and Kuetzal.
Grupeer is also very transparent when it comes to explaining what happens in case the company goes out of business.
- All uninvested funds will be returned to the user
- Grupeer will provide you with all the information about transactions concluded within the website
- The insolvency does not affect the contract between the user and lender
- The liquidator or administrator should transfer the servicing and administration of all funds to the users
It’s important to mention that Grupeer, like many other P2P lending platforms, isn’t regulated. It is good that Grupeer describes the process in their terms and conditions; however, we all should keep in mind that there is no guarantee that investors will receive all their money back. You can read the entire 16 pages long document here.
Do Investors Have Access to Individual Loan Agreements?
Investors have access to individual loan agreements before they decide to invest. You can access them in your Basket List (/basket-list).
The loan agreement describes the contract between the investor and the lender. It has all the information you would expect, such as the loan term, interest, your investment amount, number of the agreement, and information about the lender.
The contract also includes information about the buyback guarantee and the borrower’s personal data.
Potential Red Flags
- A time buying letter has been sent out
- Investors exposed fake projects
- Inconsistent information about the ownership of the platform
- Grupeer isn't able to address critical questions
- Bank accounts have been frozen
The overall structure of Grupeer's interface is similar to other P2P platforms. Grupeer also allows you to create an Auto Invest which will automatically diversify your funds.
The platform is translated into French, Spanish and German, which is useful if you prefer to navigate in other languages than English. Grupeer gives you the option to invest manually or automate your investment with the Auto Invest tool.
Grupeer’s Auto Invest Tool
Grupeer gives you the option to automate your investment strategy based on your preferences. Setting up the Auto Invest takes only two minutes.
You simply choose the loan types, countries, loan originators, interest rate interval, period and max. investment amounts such as the repayment period. Then, simply confirm your preferences and you’re good to go!Grupeer will also show you the number of loans that match your criteria.
One thing that lets Grupeer down is the platform’s lack of a secondary market. This is troublesome for investors who want to withdraw their investment before the end of the loan period.
Keep your eyes peeled though, as Grupeer is working toward introducing a secondary market on their platform in the near future!
If you consider yourself a short-term investor, we suggest you invest money on platforms such as Mintos or PeerBerry where you’ll get a much higher liquidity. It’s important to notice, however, that Grupeer currently offers loans with a higher average interest than these platforms.
Grupeer’s support is very responsive. When collecting additional information that we wanted to include in our Grupeer Review, we received a reply within only two hours.
The quality of the response is, however, not as high as that on PeerBerry or Mintos. Grupeer failed to provide an answer for the total earned interest by investors to date.
You can reach Grupeer’s support via their live chat feature on their website or by emailing their support team at email@example.com.
Note that Grupeer isn't communicating with any parties at the moment. We have been contacted by one person who's managing Grupeer's public relations. Unfortunately we haven't received any answer to our suggestion to organize a webinar where the CEO would address all the accusations.
Downsides to Using the Platform
Several users of the platform have pointed out inaccurate information regarding the origins of loan originators, which Grupeer failed to resolve. This increases the risk of your investment.
As Grupeer does not have a secondary market, investors are not able to exit their investments before the end of the loan term.
This means that investors need to rely on the buyback guarantee rather than any commercial collateral or mortgage which fundamentally offers better protection.
As pointed out in the beginning of our review, Grupeer faces serious accusations about the legitimacy of their projects. The platform also suspended all withdrawal requests. It is not recommended to engage in any kind of investment activity until this situation is resolved.
|Address:||The Black Church St. Mary’s Place, Dublin, D07P4AX, Ireland|
|Phone:||+353 1 960 1199|
|Opening Hours:||Weekdays from 9AM to 4PM|
|Social Media:||, ,|