Mr_N
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Post by Mr_N on Nov 23, 2018 0:44:17 GMT
It's time the regulator forced Lendy into administration, and loan agreements transferred to investors, particularly with a potential property crash getting ever closer with several successive months of flat-lining and receding prices - Valuations aren't going to get much better than they currently are.
I've submitted a 17 page fact file to BBC's Watchdog, anyone else of a similar mindset ought consider doing the same, it has a habit of making regulators and Ombudsman prick their ears up, and thousands of "investors" speak out, as well as condemnation by other successful platforms.
Waiting for Lendy to work through £130m of ever increasing distressed loans is foolhardy, they have neither the skills, manpower or any sense of urgency, they can't even keep in regular communications anymore, and they can't fund any of the upcoming tranches either. As others have pointed out Lendy are still turning a profit while investors have been taken to the cleaners. This isn't a situation that will continue forever with no new investments, the pyramid will collapse and the time to act will have passed.
Their recovery ability is limited to the one or two percent they make on loans, rather than the 12pc we're owed, to say nothing for capital itself.
The regulator needs to be made aware that this situation is untenable in the long term, and is simply placing investor funds at even further risk by plodding along at a snail's pace while everyone is pointing the finger of blame but doing nothing about it other than complaining at each other.
Sitting about on a little corner of the internet hoping Lendy will still be here next month and waiting for repayment emails which may never come isn't going to make this bad situation any less bad, it's inviting it to get worse. Action needs to be taken immediately, by all investors. FSA and Ombudsman complaints are the only way to get things moving before there's no Lendy left to move.
I would urge every investor to follow Lendy's complaints procedure with detailed concerns in order to obtain a final response, and then immediately proceed to the Ombudsman. While you wait for a final response in the mean time I would suggest beginning to collate information detailing how and why you believe Lendy has arrived in it's current state, and why you might feel that their recovery action simply isn't producing results at a reasonable standard. The PR disaster means no new investors are coming on board, and that is no fault of investors.
Lendy have absolutely no business launching a 2nd "Wealth" product with their current track record, it's trying to put out a fire with petrol. At the very least we may be able to walk away with new regulations to ensure this sub-prime lending debacle isn't allowed to trap innocent unsophisticated and retail investors in future.
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Post by cashmax on Nov 23, 2018 1:51:05 GMT
I think there are still many with their very deeply buried in the sand. Perhaps not ready to admit they have been hoodwinked. I still read posts here where people are discussing potential further investment!
I think that the time for rescue has passed a while ago. Lendy have had the time and space to build a new business, sucking any remaining life from SS and no doubt channelling whatever residual value might be left away too.
As for recovery post apocalypse, most investors haven't even got a clue who their investment agreement is even with or on what terms.
I think the only hope would if some of the big guys decide that the PR disaster would be more painful that bailing out Lendy and or it's investors.
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Post by p2plender on Nov 23, 2018 5:23:42 GMT
I'm more interested in what (if any) the consequences will be for those behind all this mess. Surely they can't just be allowed to sail into the sunshine?
Pretty outrageous what has gone on before us and yet the 'names' haven't (yet) been dragged in.
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elliotn
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Post by elliotn on Nov 23, 2018 5:53:55 GMT
What would be the ruling for fca to put a currently profitable company following its regs out of business?
One suggestion is to restrict p2p to sophisticated investors.
That may have saved you from a default: interest ratio that would appear to show the most school boy of investment decisions.
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locutus
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Post by locutus on Nov 23, 2018 8:10:20 GMT
It's time the regulator forced Lendy into administration, and loan agreements transferred to investors, </snip> I have to say this is complete madness from my perspective. If you don't like Lendy, don't invest further funds. Asking for administrator intervention will lengthen your exit and reduce your return of funds considerably. Lendy is still closing loans successfully. The administration of Collateral on the other hand is taking an age with little to show so far. A major P2P risk for me is co-investing with others who want to bring about their own downfall.
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Mucho P2P
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Post by Mucho P2P on Nov 23, 2018 8:42:30 GMT
It's time the regulator forced Lendy into administration, and loan agreements transferred to investors, particularly with a potential property crash getting ever closer with several successive months of flat-lining and receding prices - Valuations aren't going to get much better than they currently are. I've submitted a 17 page fact file to BBC's Watchdog, anyone else of a similar mindset ought consider doing the same, it has a habit of making regulators and Ombudsman prick their ears up, and thousands of "investors" speak out, as well as condemnation by other successful platforms. Waiting for Lendy to work through £130m of ever increasing distressed loans is foolhardy, they have neither the skills, manpower or any sense of urgency, they can't even keep in regular communications anymore, and they can't fund any of the upcoming tranches either. As others have pointed out Lendy are still turning a profit while investors have been taken to the cleaners. This isn't a situation that will continue forever with no new investments, the pyramid will collapse and the time to act will have passed. Their recovery ability is limited to the one or two percent they make on loans, rather than the 12pc we're owed, to say nothing for capital itself. The regulator needs to be made aware that this situation is untenable in the long term, and is simply placing investor funds at even further risk by plodding along at a snail's pace while everyone is pointing the finger of blame but doing nothing about it other than complaining at each other. Sitting about on a little corner of the internet hoping Lendy will still be here next month and waiting for repayment emails which may never come isn't going to make this bad situation any less bad, it's inviting it to get worse. Action needs to be taken immediately, by all investors. FSA and Ombudsman complaints are the only way to get things moving before there's no Lendy left to move. I would urge every investor to follow Lendy's complaints procedure with detailed concerns in order to obtain a final response, and then immediately proceed to the Ombudsman. While you wait for a final response in the mean time I would suggest beginning to collate information detailing how and why you believe Lendy has arrived in it's current state, and why you might feel that their recovery action simply isn't producing results at a reasonable standard. The PR disaster means no new investors are coming on board, and that is no fault of investors. Lendy have absolutely no business launching a 2nd "Wealth" product with their current track record, it's trying to put out a fire with petrol. At the very least we may be able to walk away with new regulations to ensure this sub-prime lending debacle isn't allowed to trap innocent unsophisticated and retail investors in future. Lendy is still making repayments as in the loan settled this week - PBL 148. Slow progress is better than no progress. You might not like their methods, and it seems a lot do not. However placing a company into administration will not only slow the speed down even further as can be seen with Collateral, and will also eat into the Lenders existing capital on the platform to pay the Administrators cost which will be huge to unwind all existing loans. More likely than not, after the dust settles, the FCA will limit P2P to HNW/Sophisticated investors, reducing the liquidity throughout the P2P industry, therefore, pushing up the return percentage for those that dare lend. I have heard talk that the FCA might consider making P2P companies publish their default and loss rates etc., similar to the FX brokers who have to publish the percentage of clients who lose money on their FX platforms website. That would make interesting reading on Lendys website front page.
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Post by Deleted on Nov 23, 2018 9:03:42 GMT
A major P2P risk for me is co-investing with others who want to bring about their own downfall. Amen to that.
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Garage246
Member of DD Central
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Post by Garage246 on Nov 23, 2018 9:07:02 GMT
It's time the regulator forced Lendy into administration, and loan agreements transferred to investors, particularly with a potential property crash getting ever closer with several successive months of flat-lining and receding prices - Valuations aren't going to get much better than they currently are. I've submitted a 17 page fact file to BBC's Watchdog, anyone else of a similar mindset ought consider doing the same, it has a habit of making regulators and Ombudsman prick their ears up, and thousands of "investors" speak out, as well as condemnation by other successful platforms. Waiting for Lendy to work through £130m of ever increasing distressed loans is foolhardy, they have neither the skills, manpower or any sense of urgency, they can't even keep in regular communications anymore, and they can't fund any of the upcoming tranches either. As others have pointed out Lendy are still turning a profit while investors have been taken to the cleaners. This isn't a situation that will continue forever with no new investments, the pyramid will collapse and the time to act will have passed. Their recovery ability is limited to the one or two percent they make on loans, rather than the 12pc we're owed, to say nothing for capital itself. The regulator needs to be made aware that this situation is untenable in the long term, and is simply placing investor funds at even further risk by plodding along at a snail's pace while everyone is pointing the finger of blame but doing nothing about it other than complaining at each other. Sitting about on a little corner of the internet hoping Lendy will still be here next month and waiting for repayment emails which may never come isn't going to make this bad situation any less bad, it's inviting it to get worse. Action needs to be taken immediately, by all investors. FSA and Ombudsman complaints are the only way to get things moving before there's no Lendy left to move. I would urge every investor to follow Lendy's complaints procedure with detailed concerns in order to obtain a final response, and then immediately proceed to the Ombudsman. While you wait for a final response in the mean time I would suggest beginning to collate information detailing how and why you believe Lendy has arrived in it's current state, and why you might feel that their recovery action simply isn't producing results at a reasonable standard. The PR disaster means no new investors are coming on board, and that is no fault of investors. Lendy have absolutely no business launching a 2nd "Wealth" product with their current track record, it's trying to put out a fire with petrol. At the very least we may be able to walk away with new regulations to ensure this sub-prime lending debacle isn't allowed to trap innocent unsophisticated and retail investors in future. This is utter madness. I am no fan of Lendy and as fed up as the rest of people on here, but stirring things up in the media will achieve nothing. Premature appointment of administrators will end up in distressed sale of loans at heavily discounted prices in order to complete the administration process. Lendy still have skin in the game and are still trying to get recoveries. But it takes time. Think also about the knock on effect to the P2P sector with all this mudslinging. Yes it needs more regulation and yes it needs consolidation, but there are more subtle and sensible ways to achieve a better outcome. I have a lot of money invested in P2P diversified across platforms (a seven figure sum) and the last 12 months has not been great. But there are better ways to minimise losses than trying to force platforms into administration and the knock on effect this has on the sector.
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hazellend
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Post by hazellend on Nov 23, 2018 9:10:17 GMT
It's time the regulator forced Lendy into administration, and loan agreements transferred to investors, particularly with a potential property crash getting ever closer with several successive months of flat-lining and receding prices - Valuations aren't going to get much better than they currently are. I've submitted a 17 page fact file to BBC's Watchdog, anyone else of a similar mindset ought consider doing the same, it has a habit of making regulators and Ombudsman prick their ears up, and thousands of "investors" speak out, as well as condemnation by other successful platforms. Waiting for Lendy to work through £130m of ever increasing distressed loans is foolhardy, they have neither the skills, manpower or any sense of urgency, they can't even keep in regular communications anymore, and they can't fund any of the upcoming tranches either. As others have pointed out Lendy are still turning a profit while investors have been taken to the cleaners. This isn't a situation that will continue forever with no new investments, the pyramid will collapse and the time to act will have passed. Their recovery ability is limited to the one or two percent they make on loans, rather than the 12pc we're owed, to say nothing for capital itself. The regulator needs to be made aware that this situation is untenable in the long term, and is simply placing investor funds at even further risk by plodding along at a snail's pace while everyone is pointing the finger of blame but doing nothing about it other than complaining at each other. Sitting about on a little corner of the internet hoping Lendy will still be here next month and waiting for repayment emails which may never come isn't going to make this bad situation any less bad, it's inviting it to get worse. Action needs to be taken immediately, by all investors. FSA and Ombudsman complaints are the only way to get things moving before there's no Lendy left to move. I would urge every investor to follow Lendy's complaints procedure with detailed concerns in order to obtain a final response, and then immediately proceed to the Ombudsman. While you wait for a final response in the mean time I would suggest beginning to collate information detailing how and why you believe Lendy has arrived in it's current state, and why you might feel that their recovery action simply isn't producing results at a reasonable standard. The PR disaster means no new investors are coming on board, and that is no fault of investors. Lendy have absolutely no business launching a 2nd "Wealth" product with their current track record, it's trying to put out a fire with petrol. At the very least we may be able to walk away with new regulations to ensure this sub-prime lending debacle isn't allowed to trap innocent unsophisticated and retail investors in future. Stupid idea.
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Monetus
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Post by Monetus on Nov 23, 2018 9:21:58 GMT
Regardless of what you think of their current situation, attempts to smear Lendy in the media and force them into administration are not the answer.
Yes Lendy have made a lot of serious mistakes and need to massively improve but they are making active efforts to resolve loans and recoveries take a lot of time due to the nature of the UK legal system.
If this was to happen it wouldn't speed up recovery of your loans in any way, would likely significantly increase the chances of a capital shortfall and also negatively impact the wider P2P ecosystem.
It would be turkeys voting for Christmas.
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Carter
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Post by Carter on Nov 23, 2018 9:42:21 GMT
I think you may be having a bad day Mr_N. Whilst the thought of Matt Allwright and the rest of the Rogue Traders gang at Watchdog chasing Liam through gardens and over hedges is somewhat amusing, I don't believe it would be particularly helpful. Damage limitation is the name of this game and constant pressure on Lendy to repay and recover outstanding loans and monies is the phase we are in. |
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Post by justdabbling on Nov 23, 2018 10:56:19 GMT
I agree that attempting to force Lendy into administration would not help those of us hoping to receive some repayments of existing loans.
However, this discussion has prompted me to download all the information from the website that I might need in future should the website be suddenly unavailable. Just a precaution.
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seb8072
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Post by seb8072 on Nov 23, 2018 11:20:23 GMT
As has been posted a number of times on this forum, one of the greatest concerns regarding our recoveries is the endurance of Lendy. To argue that the demise of Lendy will somehow improve our recovery prospects is sophistry.
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Mr_N
Posts: 222
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Post by Mr_N on Nov 23, 2018 11:31:54 GMT
The problem is Lendy's available funds to pursue recoveries, and that is dragging out to dangerous timescales. 700+ days in default is ludicrous and clearly just to avoid writing the debt off.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 23, 2018 11:58:14 GMT
The problem is Lendy's available funds to pursue recoveries, and that is dragging out to dangerous timescales. 700+ days in default is ludicrous and clearly just to avoid writing the debt off. Why would an administrator have any more funds to pursue recoveries? The administrator of Lendy would have the same funds (which would have to cover their costs) but then they wouldnt be pursuing the recovery, that would be the designated run down third party (assuming the FCA doesnt decide to change them) who would have to pay for it from funds provided by Lendy in a living will, any income from performing loans and the assets themselves. So additional cost pressure, likely to result in diminished realisations via firesale.
It should be pointed out that in most cases, it isnt Lendy pursuing the recoveries, it is an administrator/receiver and decisions/timescales are determined by them. If they recommend something, then Lendy are unlikely to go against it as the receiver/administrator would resign as they wouldnt be pursuing their remit. Only the loans where Lendy hasnt appointed are Lendy in control. Most of the 700+ are in receivers/administrators hands and as such you can write them off
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