Post by investorni on Jul 17, 2019 23:57:19 GMT
Also posted this on teh LAG forum:
I am not sure if this constitutes fraud / intentional miss-selling / dishonesty however it smells fishy and would like to know how others feel.
1: Bonus payments were a fairly recent introduction to Lendy, at the time there was plenty of loans on the secondary market and many were still Interest on Account, IE well within their term. Per Lendy terms and conditions each of these IOA Loans did NOT pay any interest to the lender which means each month lendy got to pocket ~ 1% of the value of the loans where they were IOA and given there was alot of loan parts on the secondary market this is not a small chunk of change. If Lendy was in financial difficulties this is a source of income for them, also if they knew an overdue loan was likely to go into default they would know they are unlikely to capitalise on that IA Loan Part in the secondary market. As such miss-selling loan parts with bonus accruals lured investors away from IOA loan parts which maximised the amount Lendy could extract.
2: I wonder did anyone with inside knowledge of the impending introduction of the bonus scheme happen to themselves or persons connected to them, happen to list all their loan parts just before the general announcement?
I feel Bonus Accrual has that feel of being sold the magic hair regrowth tonic at the summer market feel about it, I believe it was a con but perhaps not a con that was shared with many…
I am not sure if this constitutes fraud / intentional miss-selling / dishonesty however it smells fishy and would like to know how others feel.
1: Bonus payments were a fairly recent introduction to Lendy, at the time there was plenty of loans on the secondary market and many were still Interest on Account, IE well within their term. Per Lendy terms and conditions each of these IOA Loans did NOT pay any interest to the lender which means each month lendy got to pocket ~ 1% of the value of the loans where they were IOA and given there was alot of loan parts on the secondary market this is not a small chunk of change. If Lendy was in financial difficulties this is a source of income for them, also if they knew an overdue loan was likely to go into default they would know they are unlikely to capitalise on that IA Loan Part in the secondary market. As such miss-selling loan parts with bonus accruals lured investors away from IOA loan parts which maximised the amount Lendy could extract.
2: I wonder did anyone with inside knowledge of the impending introduction of the bonus scheme happen to themselves or persons connected to them, happen to list all their loan parts just before the general announcement?
I feel Bonus Accrual has that feel of being sold the magic hair regrowth tonic at the summer market feel about it, I believe it was a con but perhaps not a con that was shared with many…
