nummo
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Post by nummo on Jul 24, 2019 8:17:36 GMT
proplend Sorry for lots of questions but looking more deeply into your platform at the moment to decide if I want to commit more cash. I note you have a Standby Service Provider in place if the platform defaults but cannot find much further information about this. Its is referred to briefly in the Investor FAQS and I found an old blog post from 2016 indicating that Target had been appointed to fulfill this role. Please could you confirm this is still the case and an extra information you could give about this provider and the mechanisms for a smooth handover would be appreciated. Thanks.
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Post by proplend on Jul 24, 2019 16:02:36 GMT
Yes, Target is still our backup service provider. We will announce any new provider if and when this changes.
Not really too much else to tell you except that they would take over the administration of active platform loans - ensuring payments continues from borrowers (even if we don't).
First legal charge security is held in Trust by Proplend Security Limited for each loan, on behalf of participating Lenders . Client Money is segregated (in accordance with client money rules) . Direct loan contracts are in place between individual Lenders and borrowers.
Richard
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nummo
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Post by nummo on Jul 24, 2019 17:12:36 GMT
proplend Thanks for the clarification re Target. I have some follow up questions: - Is the standby provider triggered automatically in the case of platform failure?
- How do they calculate their fees for running the loan book down or is this already set out in your agreement?
- Do they have some kind of access to your IT systems, databases etc already or does it rely on the platform making this available?
Trying to get a deeper understanding of the whole process in the case of platform failure, so anything else you can tell us would be appreciated.
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p2pfan
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Post by p2pfan on Jul 27, 2019 18:56:51 GMT
proplend Thanks for the clarification re Target. I have some follow up questions: - Is the standby provider triggered automatically in the case of platform failure?
- How do they calculate their fees for running the loan book down or is this already set out in your agreement?
- Do they have some kind of access to your IT systems, databases etc already or does it rely on the platform making this available?
Trying to get a deeper understanding of the whole process in the case of platform failure, so anything else you can tell us would be appreciated.
Great questions. Very important. In my experience not enough lenders do their due diligence on such crucial matters. Having been in multiple situations before where administrators/liquidators have milked company closures for their benefit, charging several hundred pounds per hour and making many hundreds of thousands of pounds for themselves which means little is left for people owed money, and also taking many years to go through the processes, it's vital to know what happen if a Lendy-like situation panned out.
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nummo
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Post by nummo on Jul 28, 2019 14:48:15 GMT
proplend Thanks for the clarification re Target. I have some follow up questions: - Is the standby provider triggered automatically in the case of platform failure?
- How do they calculate their fees for running the loan book down or is this already set out in your agreement?
- Do they have some kind of access to your IT systems, databases etc already or does it rely on the platform making this available?
Trying to get a deeper understanding of the whole process in the case of platform failure, so anything else you can tell us would be appreciated.
Great questions. Very important. In my experience not enough lenders do their due diligence on such crucial matters. Having been in multiple situations before where administrators/liquidators have milked company closures for their benefit, charging several hundred pounds per hour and making many hundreds of thousands of pounds for themselves which means little is left for people owed money, and also taking many years to go through the processes, it's vital to know what happen if a Lendy-like situation panned out. Yes, hopefully proplend will provide some guidance. I like the transparency on this platform so far, so expect they will update in due course.
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nummo
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Post by nummo on Aug 5, 2019 17:09:34 GMT
proplend just bumping this one in case it got missed. Please could you elaborate on your wind down procedures.
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Post by proplend on Aug 13, 2019 12:40:14 GMT
proplend just bumping this one in case it got missed. Please could you elaborate on your wind down procedures. Good afternoon Nummo Yes - our standby provider is triggered automatically in the unlikely event of platform failure. Proplend covers the annual cost of having Target on standby, with their fees (on a time cost basis) set out in our agreement with them. They regularly receive our loan tape and would have access to our people and systems. Our ongoing Lender fee will go towards backup administration costs for the remainder of the term, for all active loans. There is also the first legal charge and ring-fenced interest reserve for each loan that will help the standby provider in their duties should the borrower fail to make payments when they fall due. We have a full wind down process in place, which we review regularly against market best practice and more recently to ensure we're in line with the FCA regulations. I hope this helps clarify. Richard
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nummo
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Post by nummo on Aug 13, 2019 13:09:41 GMT
Thanks for coming back on this. The standby seems reasonable although the implication is that there would be ongoing admin costs (offset by the lender fees) borne by lenders in the event of a wind down. Not sure if there is any practical way to avoid this but it is an unknown as we do not know what time (charges) the standby provider would book in relation to running the book down.
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