mary
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Post by mary on Oct 22, 2018 6:27:52 GMT
From the FT today...
A British peer-to-peer property lender has taken the unusual step of appealing to its regulators for help after one of its biggest borrowers threatened to sue the company and many of its investors.
Retail investors in Lendy are already facing tens of millions of pounds in potential losses after almost two-thirds of borrowers failed to repay their loans on time, according to a Financial Times analysis of its loanbook.Full story via google search... www.ft.com/content/1c40835e-d381-11e8-a9f2-7574db66bcd5 |
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invester
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Post by invester on Oct 22, 2018 7:00:54 GMT
Old news.
Not sure the FCA are gonna have much sympathy though. They would have been aware of the growing discontent around Lendy, and as the saying goes what goes around, comes around.
It's in the interest of the whole industry that this goes all the way. If it gets thrown out then it pretty much ends another exit route for some borrowers, if it is upheld that is going to have big consequences.
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Post by cashmax on Oct 22, 2018 7:41:03 GMT
It might be old news to you, but although the FT article highlights the borrower trying to sue investors in London (I assume ok to discuss this now that it's plastered all over the mainstream media) the main body of the story discusses the sorry state of Lendy, and that is breaking news to most who are not already hurting, including the FCA themselves, who cannot pretend this isn't happening anymore.
This has zeroed in on the main issues that Lendy face. No doubt Lendy will try and take action to have the FT remove this piece, but they won't. Once this article gets shared across the web it's the final nail if you ask me, hopefully get someone in there to start unravelling.
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mikeh
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Post by mikeh on Oct 22, 2018 7:55:39 GMT
I don't really understand why they think the FCA are in a position to help. What can they do?
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Post by cashmax on Oct 22, 2018 8:01:43 GMT
I don't really understand why they think the FCA are in a position to help. What can they do? Nothing, but Lendy might be able to blame this incident as the catalyst of their downfall, rather than longterm, systemic miss-management.
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tombraider
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Post by tombraider on Oct 22, 2018 8:43:16 GMT
Which loan is this?
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star dust
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Post by star dust on Oct 22, 2018 8:56:01 GMT
Mod Hat On/It might be old news to you, but although the FT article highlights the borrower trying to sue investors in London (I assume ok to discuss this now that it's plastered all over the mainstream media) the main body of the story discusses the sorry state of Lendy, and that is breaking news to most who are not already hurting, including the FCA themselves, who cannot pretend this isn't happening anymore. This has zeroed in on the main issues that Lendy face. No doubt Lendy will try and take action to have the FT remove this piece, but they won't. Once this article gets shared across the web it's the final nail if you ask me, hopefully get someone in there to start unravelling. I am not in the loans affected so I have no privileged information, but it is my understanding that this information remains part of an on-going legal case/s and the investors that do know more have received it as confidential information. So NO it is not alright to discuss this particular matter in specific terms publicly on this forum. The FT article does not identify any specific loans so we will leave this in situ, but any discussion of confidential issues concerning specific loans or attempts to identify and associate loans and borrowers will be moderated as usual. The FT and FCA have teams of lawyers to defend themselves we are volunteers and have no funds let alone a team of lawyers. Thank you all for your support.
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Mike
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Post by Mike on Oct 22, 2018 9:07:47 GMT
The FT and FCA have teams of lawyers to defend themselves we are volunteers and have no funds let alone a team of lawyers. Suspect some of the lenders referred to in the article might be feeling the same way!
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rrrupert
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Post by rrrupert on Oct 22, 2018 9:14:25 GMT
I think the bigger issue here is the news that investors (us) have potential legal liabilities to the borrowers. I am fine with taking risks on my capital in return for a high interest rate. But the idea that I might have practically unlimited (or at least greater than my total assets) liability and court costs as a result of making the loan on a P2p site is quite a shock.
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mary
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Post by mary on Oct 22, 2018 9:19:07 GMT
I think the bigger issue here is the news that investors (us) have potential legal liabilities to the borrowers. I am fine with taking risks on my capital in return for a high interest rate. But the idea that I might have practically unlimited (or at least greater than my total assets) liability and court costs as a result of making the loan on a P2p site is quite a shock. Agreed, while I don’t think the FCA will get involved in any contract disputes, they will hopefully use this experience to tighten regulations or guidance. I for one would welcome clarification that, while all my Capital may be at risk, a platform cannot expose me to a risk of loss greater than my investment in any particular loan, especially when we have no sight of the loan contracts.
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GeorgeT
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Post by GeorgeT on Oct 22, 2018 10:50:30 GMT
I can't read it because it just keeps coming up that I need to subscribe to the FT. Grrr.
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ianj
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Post by ianj on Oct 22, 2018 10:56:12 GMT
I can't read it because it just keeps coming up that I need to subscribe to the FT. Grrr. A Google search of the highlighted content in the OP will get you to the complete article - no subscription required.
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rrrupert
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Post by rrrupert on Oct 22, 2018 10:56:14 GMT
I can't read it because it just keeps coming up that I need to subscribe to the FT. Grrr. The headline on the publicly available Ft front page is "UK peer-to-peer lender asks regulator for help" Open an incognito window in your browser Google the headline within the incognito window Open the ft link it throws up within the incognito window
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Post by cashmax on Oct 22, 2018 10:59:55 GMT
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Mousey
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Post by Mousey on Oct 22, 2018 11:29:42 GMT
As an investor in the loan concerned I have been made aware of some of the details by Lendy. This does show the difficulty of any platform giving away too much information to their investors especially if it constitutes 'news'
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