Monetus
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Post by Monetus on Jun 3, 2019 8:18:15 GMT
On the 8th of October 2015 one of the owners of Lendy made the following post on this very forum: p2pindependentforum.com/post/66654I have quoted it here for ease of reference: "Remember the ONLY likelihood of a total loss is a massive fraud committed by the borrower. 1 in a 1000 seems to be very conservative, so we would put it at 1 in 10,000 maybe 1 in 100,000 given our DD and security measures in place and even then, those figures are conservative.
All assets have indemnified valuations.
Our legals are indemnified.
We have a big pot of cash in the Provision Fund which is increasing all the time.
We are the most profitable P2P lender in the UK, probably Europe and most likely the known Universe.
Our overheads are very negligible (for now, as we are building the infrastructure and team to accommodate future growth)."How do we all feel about this statement now? - Do you think that the risks of investing with Lendy/SS were accurately communicated to you? - Would a statement like this by the owners of a platform potentially encourage you to invest your funds there? - Should The FCA have done more to regulate the entire P2P sector from the very beginning to protect you as an investor? Discuss. |
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lobster
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Post by lobster on Jun 3, 2019 8:37:27 GMT
" ...... and most likely the known Universe."
How utterly infantile. More like a children's comic than professional commentary. Are they incapable of understanding that lenders are investing real money here ?
Totally irresponsible and frankly pathetic.
I guess with children fronting their operation, it was always doomed to failure.
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Post by andygod1 on Jun 3, 2019 8:39:47 GMT
Sounds like a snake oil seller.
however, investors need to take responsibility too. They need to learn to spot a snake oil seller early and have heeded the helpful warnings of posters on this bb.
why? Because even regulators act too slow. So take responsibility and develop your skills.
I have £200 in Lendy, and did heed my own thoughts telling me all was too rosy as well the helpful posts. I removed my life savings from Lendy and my loss is £200.
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adrianc
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Post by adrianc on Jun 3, 2019 8:40:33 GMT
It's an easy one to scoff at, but just pause and think... How many total losses have happened so far?
We've only had one loan (IIRC - but I've forgotten which...) to date that's been fully closed with any capital loss at all - and that only small, a couple of percent. All the rest are still open. We've had several where the security has fallen short, yes - but not total loss, and other routes to recompense are still active. Some (most?) of those are likely to see capital loss, sure - but we're already past total.
Of the others, will there be total? Perhaps. Old-terms loans are, of course the most likely. Even PBL103 should see something back, no matter how derisory...
And those indemnities can be legally chased. And, in one case so far, have paid.
Back then, those were true.
The FCA started regulation while the sector was still growing. Lendy have failed within the regulatory environment - and we're yet to see how well that regulation deals with the failure, especially whether the run-off plan works.
The other big platform failure, of course, happened precisely because the platform DIDN'T conform to the regulatory environment... But you, of all people, know the score with that one...
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invester
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Post by invester on Jun 3, 2019 8:44:33 GMT
Can't really blame them for being ebullient, as that was their peak, I seem to remember many being greedy at this time (remember when loan bids had to be scaled back because demand exceeded supply).
The original statement is interesting. We have seen some frauds from the borrowers alright, but across all the loans has there been a total wipeout? It seems that platform risk and possible unethical behaviours by owners are far bigger risks.
I do wonder if administration prevents Liam Brooke from actually making any communications nowadays. An apology at this time perhaps is too late to avoid some quite disastrous losses but it would be more reassuring to know he is gonna be co-operative rather than obstructive.
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gc
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Post by gc on Jun 3, 2019 8:54:19 GMT
I agree. It sounds like they went to a primary school and got the kids to write something up for them. Half expecting a picture of He-Man holding up his sword, at the end of their comments/statement.
As for the FCA, from what I have seen, they strike me as a toothless dog, all bark. An organisation set up to just write a strongly worded letter that says to people "oooh, that was naughty what you did there", when something goes wrong, and that's about it.
I (and I am sure most of you) have been doing this for a few years now, and anyone that writes nonsense like that in their statements, one should always run a mile, or at the very least, tread lightly.. I guess everyday is a school day.
To answer your question, Monetus, in hindsight (I dislike that word), I guess the risks could have been accurately communicated, taking into account their Mickey Mouse write-up, though I know that's not what you meant.
Regarding the FCA, like I said above, they serve little to no purpose in helping out investors when problems arise, in my experience anyway.
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zlb
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Post by zlb on Jun 3, 2019 9:22:34 GMT
On the 8th of October 2015 one of the owners of Lendy made the following post on this very forum: p2pindependentforum.com/post/66654I have quoted it here for ease of reference: "Remember the ONLY likelihood of a total loss is a massive fraud committed by the borrower. 1 in a 1000 seems to be very conservative, so we would put it at 1 in 10,000 maybe 1 in 100,000 given our DD and security measures in place and even then, those figures are conservative.
All assets have indemnified valuations.
Our legals are indemnified.
We have a big pot of cash in the Provision Fund which is increasing all the time.
We are the most profitable P2P lender in the UK, probably Europe and most likely the known Universe.
Our overheads are very negligible (for now, as we are building the infrastructure and team to accommodate future growth)."How do we all feel about this statement now? - Do you think that the risks of investing with Lendy/SS were accurately communicated to you? - Would a statement like this by the owners of a platform potentially encourage you to invest your funds there? - Should The FCA have done more to regulate the entire P2P sector from the very beginning to protect you as an investor? Discuss. Thanks. Yes, much of their initial advertising has been stated as misleading by others - I suspect that this is where the hinted at compensation has been awarded. I think we need some of the original advertising tbh. I know that the name 'saving stream' was misleading, maybe that's enough for a claim - but a claim against what? Edit: here's one quote from the welcome email "You are now ready to start funding existing secured loans today and earn a great return!"
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Monetus
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Post by Monetus on Jun 3, 2019 9:29:56 GMT
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zlb
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Post by zlb on Jun 3, 2019 10:21:13 GMT
Thanks. I can't see webarchive on broadband sub at home, and for data provider it's also hurdles to get through - says for over 18s. Is there a way these can be stored anywhere? Screen shots to here at all?
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zlb
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Post by zlb on Jun 3, 2019 10:58:27 GMT
Do we get compensation for "massive fraud" committed by someone other than borrowers? Does anyone know what the lc&f possibility of compensation is based on?
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Monetus
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Post by Monetus on Jun 3, 2019 11:09:09 GMT
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Monetus
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Post by Monetus on Jun 3, 2019 11:17:04 GMT
Thanks. I can't see webarchive on broadband sub at home, and for data provider it's also hurdles to get through - says for over 18s. Is there a way these can be stored anywhere? Screen shots to here at all? Not sure perhaps some tech "wizard" from this forum could do so.
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zlb
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Post by zlb on Jun 3, 2019 11:23:21 GMT
.. and this with 31 May update currently www.fscs.org.uk/failed-firms/lcf/Ly are not in their search ... currently ... but if an FCA platform lending to a non-FCA accredited provider is the issue here then that could be interesting with Ly and elsewhere perhaps?
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adrianc
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Post by adrianc on Jun 3, 2019 11:41:01 GMT
As for the FCA, from what I have seen, they strike me as a toothless dog, all bark. An organisation set up to just write a strongly worded letter that says to people "oooh, that was naughty what you did there", when something goes wrong, and that's about it. Perhaps you've forgotten the FCA have closed one platform down for not conforming to the regulatory requirements? Then, when that platform's management decided to try to rig the administration by using some dodgy mates to hide the book-cookery, the FCA took court action to put it into the hands of an experienced, approved administrator. Are they perfect? I'm not even beginning to say that. But they're certainly a lot more potent than you suggest.
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ilmoro
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'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 Jun 3, 2019 11:56:23 GMT
I think the FCA can best be described as very effective at shutting empty stable doors. 😂
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