rocky1
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Post by rocky1 on May 9, 2018 17:29:28 GMT
i to was led to believe the exsistance of a provision fund and wellesley having skin in every loan. could wellesley let us know on this forum how much their losses are going to be and how much and how long they anticipate it all to take.was a first loss claim ever made as until now have not really been looking at my investments here as thought everything was going along smoothly.been too caught up in all the antics of ly/fs/mt/etc.do wellesley ever look or reply to anything on here.
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2boi
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Post by 2boi on May 10, 2018 19:07:49 GMT
Wellesley now looking very dodgy IMHO. I pulled my ISA from them in February when they tried to change terms, see my previous posts about them and the FT articles:
Wellesley calls its first ISA bond in early, at par
Feb 6, 2018 at 11:05pm Post by 2boi on Feb 6, 2018 at 11:05pm
Looks like no one else has this problem then...
I've given up going through the differences between the old terms and the news ones and decided to cash in for the following reasons
1) Wellesley have not explained why they are doing this
2) Wellesley have not explained what difference it makes (unless I wade through over 200 pages of legal documents)
3) there have been some worrying FT articles about Wellesley recently (Google for "alphaville" "ft" "Is all well at Wellesley?" or "The joy of borrowing from your own P2P business… so you can buy more shares in that business"
4) the stock market has finally crashed so it's a good time to have ready cash available
5) next crash will be property and 90% LTV property backed bonds even more so
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2boi
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Post by 2boi on May 14, 2018 1:01:19 GMT
I came across this old post on this forum from the official Wellesley representative which may be relevant now: "In the event that investors on the Wellesley & Co platform would suffer a loss of interest or capital as a result of investing with Wellesley & Co, the Directors of Wellesley & Co will seek to deploy provisions at their discretion to make good any loss. While Wellesley & Co cannot guarantee the use of funds, it is the Directors' severest intention that no investors loses funds while investing through the Wellesley & Co Platform."p2pindependentforum.com/thread/3193/wellesley-provision-fundSlightly worrying it looks like the rep may have left Wellesley some time after 8th June last year which was their last activity here. Update: there seems to be another Wellesley employee who joined this forum in March this year, named pilk1 . Very quiet though...
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Post by crabbyoldgit on May 21, 2018 12:03:10 GMT
I got out with an interest rate cut 6 months ago after doing a few basic sums looking at the amount in the provision fund the present at that time non performing loans totals and the loans being actively managed.Code i considered for defaulting soon. Best thing I ever did, tears coming here in my honest opinion.
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2boi
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Post by 2boi on May 24, 2018 11:44:02 GMT
I asked Wellesley what my 3 defaulting loans are i.e. how much I have in each one (I don't know), who they are to and what the securing assets are. Quite basic info I would have thought. Their response:
"We offer anonymity to both Lenders and Borrowers. As a Lender, you will not be provided with the name or identity of the party to whom you have lent money." [other questions ignored]
So I can't even find out which of my already anonymised loans are in default. Annoyingly there are 3 in default if it were 1 or even 2 I could work it out.
In any case I would expect anonymity to go out of the window when a borrower is in default.
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Post by waryinvestor on Aug 22, 2018 10:21:35 GMT
Their response to the question of Provision Fund was :
"The Provision Fund Board made a decision that no provisions will be made for these loans, therefore as per our communications to all our Peer to Peer lenders on the 27th April 2018, any loss to arise will affect capital lent to these particular borrowers. 10.4. The Provision Fund Board shall not be required to provide an explanation or justification as to why any Application for compensation was accepted or rejected. This is discretionary compensation and Loan provisions are assessed on a loan-by-loan discretionary basis and their use as protection to investors is evaluated on a discretionary basis. Loan provisioning is made by Wellesley Finance and represents a provision of equity capital which may be used to protect investors in the event of a loan loss occurring. How they come to a decision is at their discretion and details will not be provided to lenders."
"In regards to the current 3 defaulted loans, the decision has been made that any loss to arise will be passed onto lenders, inline with the risks involved with peer to peer lending."
"However, with these loans we believe it is appropriate that P2P investors bear their share and Wellesley covers its own share of the loan default with total transparency to the process."
Probably a case for 'Financial Ombudsman' as they do take cases against P2P Platforms too.
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Post by carol167 on Aug 22, 2018 18:33:20 GMT
Never mind the fact that I invested in Wellesley in part because the rates were very low and therefore you would assume safer loans compared to the likes of Lendy, MT or FS, and in part becuase Wellesley marketed the fact that they had a provision fund and given that this is the only default so far, you would think they would push the boat out in the first few instances to protect their name.
But then I guess, since they came away from being a proper p-2-p platform I doubt they care.
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bigfoot12
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Post by bigfoot12 on Aug 23, 2018 23:24:41 GMT
carol167, crabbyoldgit, waryinvestorDid any of you, or anyone else get any notification that the provision fund had been used up? This was the response to my query, that previous defaults had used it up. Can anyone point me to any mention of it on the website. I am minded to make an official complaint and then proceed further, but I am trying to gather information first. They claim that so far the provision fund has absorbed £10.8m of losses. Any information would be appreciated.
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Nomad
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Post by Nomad on Aug 24, 2018 11:39:41 GMT
I got out with an interest rate cut 6 months ago after doing a few basic sums looking at the amount in the provision fund the present at that time non performing loans totals and the loans being actively managed.Code i considered for defaulting soon. Best thing I ever did, tears coming here in my honest opinion. I requested my funds this week - "Your request to access your funds earlier than the end date of your term has been reviewed and has not been approved."
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Post by carol167 on Aug 24, 2018 13:10:54 GMT
carol167 , crabbyoldgit , waryinvestor Did any of you, or anyone else get any notification that the provision fund had been used up? This was the response to my query, that previous defaults had used it up. Can anyone point me to any mention of it on the website. I am minded to make an official complaint and then proceed further, but I am trying to gather information first. They claim that so far the provision fund has absorbed £10.8m of losses. Any information would be appreciated.
Not that I am aware of, but then I don't copiously read everything they send me as it's a sleeper account for me. i.e. add money and forget about it till the term is up.
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Post by waryinvestor on Aug 27, 2018 9:55:45 GMT
Hi bigfoot12.
No. I specifically asked that question and the reply that I got was posted above. Basically they said that it was their discretion and they are at liberty to not disclose any reasoning for that decision. They also said that "The % Wellesley holds in each loan varies from case to case and will depend on loan amount and lender funds available." "£2.6million of the loss is lender funds (60%) and approx. 1.7M is Wellesley Finance funds (40%)."
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chriscross
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Post by chriscross on Sept 19, 2019 12:53:36 GMT
Not looking good for what's left in the Wellesley P2P Classic Accounts, email just received is quoting a recovery amount of 17.5% less than previous figure and they are no longer quoting a recovery date of 30/04/2020.
It was funny how the provision fund miraculously disappeared as soon as they stopped offering P2P investments and went solely to Bonds.
After Collateral and Lendy, now Wellesley have to put the boot in while we're down..
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tjtl
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Post by tjtl on Sept 20, 2019 8:04:22 GMT
And the way they communicate the reduction is typically Wellesley, obtuse, and never clear and transparent- referring back to a previous notification in March as having "impacted the Forecasted Recovery Balance" , without explaining that there is a new reduction to the recovery balance effective now. Wellesley could do with taking lessons on how they communicate bad news- much better to spell it out than give the impression of hiding it. Thankfully I am still sufficiently ahead to take the loss- unlike , say, the mess that is Funding Circle, but I am frustrated with Wellesley- they could and should have been one of the safer plays, but wasted money on ridiculous advertising, took too much concentrated risk on some dodgy investments, quietly closed the provision fund (or rather shut it when it was depleted) without telling the poor bloody investors, and have basically screwed up what seemed a well structured proposition. I would be surprised if we ever got back the rest of our "Forecast Recovery Amount".
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ferdy
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Post by ferdy on Sept 24, 2019 9:56:20 GMT
What I don't understand is if my Total Forecast Recovery Balance has reduced by this latest announcement, then why has n't my Total Realised Loss changed? Wellesley's communication is totally confusing and devious.
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Post by mrclondon on Sept 24, 2019 16:00:53 GMT
If any of you with access to DD Central are interested in the black hole that swallowed £2.5m of Wellesley funds, take a look at this thread (the line in red and subsequent paras) relating to a new Loanpad loan. Aparently just under £1.5m recovered by Wellesley of a £4m loan, 38% recovery from a resale back to the borrower.
The borrower was also connected to a repaid Lendy loan, PBL132, which is now in administration via the subsequent lender.
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