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Post by charliebrown on Mar 10, 2019 15:39:14 GMT
bg this is a bit disconcerting for investors - I appreciate that you must be privy to some information that the rest of us do not have, is that the case? As we are speculating that FS has been negligent and how we will react to no repayment. FS are taking action that they believe will recover investors money. Whatever reaction you may be thinking about regarding no repayment, you first have to wait for recovery actions to run their course. My point was that whether the loan is 'defaulted' is neither here nor there with regard to chances of recovery. It also does not stop investors writing off the loans for tax purposes. People with large sums of money in this loan do not care if the loan meets the FS definition of a default, all they care about is getting their money back. I’m not an expert, but when the assets have been fraudulently sold and the borrower has been declared bankrupt then I’m not sure what type of “action” would lead to any type of recovery.
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blender
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Post by blender on Mar 10, 2019 15:58:40 GMT
FS are taking action that they believe will recover investors money. Whatever reaction you may be thinking about regarding no repayment, you first have to wait for recovery actions to run their course. My point was that whether the loan is 'defaulted' is neither here nor there with regard to chances of recovery. It also does not stop investors writing off the loans for tax purposes. People with large sums of money in this loan do not care if the loan meets the FS definition of a default, all they care about is getting their money back. I’m not an expert, but when the assets have been fraudulently sold and the borrower has been declared bankrupt then I’m not sure what type of “action” would lead to any type of recovery. There is a claim (class action) against the platform if you consider that there has been gross negligence or recklessness. Rather like you might have a claim for Whitehaven. If the platform did not take secure possession of the artworks, contrary to the T&Cs and without informing lenders (which is what I read here), then you have a good start.
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adrian77
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Post by adrian77 on Mar 10, 2019 20:35:24 GMT
As I see it this miscreant is in breach of a contract of obligation which to me is a glorified IOU so FS handed over £2.3m against a piece of paper and he sold the art - I can't see anything complicated about this at all! FS failed to secure the assets and he sold them - course he did!
I would say to FS that they have to be very careful with the statements they put out in the public forum e.g. they repeatably state they have other options to recover the money and myself and others just can't see what these possibly are - even if they get a judgement it can easily be worth NOTHING (tell me about it). I have written off 100% of my 6 loans with this character. As discussed earlier there was a heated discussion about the 42% loss for the Peter Howson painting which I said was to be expected and FS were unlucky and this was the risk we took (like to be fair) but this is a total disgrace and in my book this is egregious incompetence which beggars belief and worthy of a legal opinion of "malfeasance" is that is the correct legal term.
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henryjford
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Post by henryjford on Mar 10, 2019 21:20:24 GMT
We should start to go to the press, Moneybox, etc..
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rogerthat
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Post by rogerthat on Mar 11, 2019 9:37:47 GMT
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adrian77
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Post by adrian77 on Mar 11, 2019 10:02:07 GMT
FS - here is some free advice - if a son-in-law of a F1 impresario offers you some free tickets or even lunch and wants a £1m loan against a Picasso don't give it to him unless you have the painting in your mits - recovering it may prove a tad embarrassing...
That said I wish HRH had our art works - at least we would get them back ! As of today I just can't see how FS are going to recovery anything - apart from possibly the Lowry?
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henryjford
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Post by henryjford on Mar 11, 2019 10:42:39 GMT
FS - here is some free advice - if a son-in-law of a F1 impresario offers you some free tickets or even lunch and wants a £1m loan against a Picasso don't give it to him unless you have the painting in your mits - recovering it may prove a tad embarrassing... That said I wish HRH had our art works - at least we would get them back ! As of today I just can't see how FS are going to recovery anything - apart from possibly the Lowry? I have given up on FS. My thoughts now are solely with how to bring a claim against them.
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henryjford
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Post by henryjford on Mar 11, 2019 10:44:53 GMT
GOOD about time these totally irresponsible people get hauled over the coals.
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Post by beepbeepimajeep on Mar 11, 2019 10:47:37 GMT
If the ombudsman doesn't find FS at fault here (and liable for losses) then they never will find a platform at fault.
Can Funding Secure really afford this one though? Would a judgement, from whoever, making FS liable for £2m+ of losses not make them collapse? There is Whitehaven on top of this for which also they will be held liable imo.
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adrian77
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Post by adrian77 on Mar 11, 2019 11:15:38 GMT
quite possibly although I would hope a proper investor would take them over - should be pretty cheap to buy!
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Mousey
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Post by Mousey on Mar 11, 2019 11:18:15 GMT
As I've said before I don't think a class action law suit is appropriate at this time. This is a FCA regulated company not Daves Dodgy Cars Ltd. Jaw-Jaw not War-War!
In terms of recovery strategy - in the committal hearing FS submitted that the borrower has avoided coming back to the UK for fear of extradition to the US (fwiw the judge accepted this submission). It's not too far fetched that if he was extradited from Spain to the UK then he or parties close to him might be persuaded to settle the debt to avoid a subsequent yoinkment by the US. Clearly this is not a normal recovery route and unlikely to feature in most investment exit plans. Apart from a pension plan that matures in 5 years time I have not seen any other viable recoveries. Of course fundingsecure should be able to sell the paintings but they hold none of them.
fundingsecure should note that I intend to pursue repayment of the investment including interest to date so they may well find it cheaper to settle with us now rather than at an unknown point in the future. I am sure they wouldn't even consider deducting legal fees from the proceeds.
I'm continuing a dialogue with a third party (not a law firm) regarding strategy for dealing with this and I should be able to report back by Friday.
If this has the potential to collapse FS then that's more of a reason to make a statement to lenders and be honest.
I am most aggrieved at how this is being handled by fundingsecure.
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Post by beepbeepimajeep on Mar 11, 2019 11:39:31 GMT
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mjc
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Post by mjc on Mar 11, 2019 14:56:31 GMT
Surely there is a strong case for FS to be put on the FCA’s watchlist as Lendy has just been!
They say:- “ the FCA found that where a P2P platform offered investors a target rate of return for a discretionary portfolio which they assembled or managed, they were not always exposing investors to loans which met the risk parameters advertised at the time of investment.
In response, the FCA has proposed rules that, when choosing P2P agreements on behalf of the investor, platforms must only facilitate ones in line with the risk parameters advertised to the investor.
On top of this, P2P platforms offering a target rate of return must be able to determine, with reasonable confidence, that a portfolio will generate the advertised target rate.”
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Godanubis
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Post by Godanubis on Mar 11, 2019 15:00:59 GMT
Surely there is a strong case for FS to be put on the FCA’s watchlist as Lendy has just been! They say:- “ the FCA found that where a P2P platform offered investors a target rate of return for a discretionary portfolio which they assembled or managed, they were not always exposing investors to loans which met the risk parameters advertised at the time of investment. In response, the FCA has proposed rules that, when choosing P2P agreements on behalf of the investor, platforms must only facilitate ones in line with the risk parameters advertised to the investor. On top of this, P2P platforms offering a target rate of return must be able to determine, with reasonable confidence, that a portfolio will generate the advertised target rate.” That would only apply where they picked the investments within the portfolio and promised a specific return, not for individual investments chosen by you to invest in.
"Surely there is a strong case for FS to be put on the FCA’s watchlist as Lendy has just been!"
I have just checked watchlist and see no mention of Lendy, Can you post a link please.
But nothing on FCA website
I would be happy if all P2P were under close scrutiny off FCA and not just dilligent members of this forum (You Know who you are )
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mjc
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Post by mjc on Mar 13, 2019 8:21:46 GMT
Surely there is a strong case for FS to be put on the FCA’s watchlist as Lendy has just been! They say:- “ the FCA found that where a P2P platform offered investors a target rate of return for a discretionary portfolio which they assembled or managed, they were not always exposing investors to loans which met the risk parameters advertised at the time of investment. In response, the FCA has proposed rules that, when choosing P2P agreements on behalf of the investor, platforms must only facilitate ones in line with the risk parameters advertised to the investor. On top of this, P2P platforms offering a target rate of return must be able to determine, with reasonable confidence, that a portfolio will generate the advertised target rate.” That would only apply where they picked the investments within the portfolio and promised a specific return, not for individual investments chosen by you to invest in.
"Surely there is a strong case for FS to be put on the FCA’s watchlist as Lendy has just been!"
I have just checked watchlist and see no mention of Lendy, Can you post a link please.
But nothing on FCA website
I would be happy if all P2P were under close scrutiny off FCA and not just dilligent members of this forum (You Know who you are ) That link is behind a paywall, I don’t have time to read here, let alone FT. I am surprised you ask as you have posted on p2pindependentforum.com/thread/14436/lendy-fca-special-watch-listHowever it’s a Q for FCA why it’s not on their web site..........
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