Mousey
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Post by Mousey on Jan 22, 2024 15:21:54 GMT
LENDY: 20% OF BORROWERS FAILED CREDIT POLICY CHECKS BUT WERE STILL GIVEN LOANS, CONFIDENTIAL REPORT REVEALS
A review of the Lendy loan book by insolvency experts Duff and Phelps, published in February 2018 shortly after the FCA found “vital” failures, has revealed a smorgasbord of weaknesses at the now insolvent peer-to-peer lending firm, with members of the public set to lose millions. The confidential document, which says it “must not be made available, copied or otherwise quoted or referred to in whole or in part in any way“, is being exclusively reported by the mouseinthecourt as part of our ongoing investigation into the FCA’s role in regulating the so-called peer-to-peer lending industry. Read more here
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micky
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Post by micky on Jan 22, 2024 15:50:46 GMT
LENDY: 20% OF BORROWERS FAILED CREDIT POLICY CHECKS BUT WERE STILL GIVEN LOANS, CONFIDENTIAL REPORT REVEALS
A review of the Lendy loan book by insolvency experts Duff and Phelps, published in February 2018 shortly after the FCA found “vital” failures, has revealed a smorgasbord of weaknesses at the now insolvent peer-to-peer lending firm, with members of the public set to lose millions. The confidential document, which says it “must not be made available, copied or otherwise quoted or referred to in whole or in part in any way“, is being exclusively reported by the mouseinthecourt as part of our ongoing investigation into the FCA’s role in regulating the so-called peer-to-peer lending industry. Read more here This is a shocking read, thanks for sharing.
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merlin99
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Post by merlin99 on Jan 22, 2024 17:02:37 GMT
I have been aware of this report for some time but not read much of it. Now having read more I am totally appalled at the apparent complacency of the FCA in dealing with this matter. To my mind there is ample evidence within the report for the FCA to prosecute the then directors of Lendy on multiple counts.
Is this a further case of the "old pals network" protecting its mates or are they still contemplating what to do?
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toffeeboy
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Post by toffeeboy on Jan 23, 2024 10:06:50 GMT
LENDY: 20% OF BORROWERS FAILED CREDIT POLICY CHECKS BUT WERE STILL GIVEN LOANS, CONFIDENTIAL REPORT REVEALS
A review of the Lendy loan book by insolvency experts Duff and Phelps, published in February 2018 shortly after the FCA found “vital” failures, has revealed a smorgasbord of weaknesses at the now insolvent peer-to-peer lending firm, with members of the public set to lose millions. The confidential document, which says it “must not be made available, copied or otherwise quoted or referred to in whole or in part in any way“, is being exclusively reported by the mouseinthecourt as part of our ongoing investigation into the FCA’s role in regulating the so-called peer-to-peer lending industry. Read more here Not sure how the headline is relevant, we weren't lending against the borrower we were lending against a charge over the asset. The review should have been of Lendys relationship with the valuers and how some of the valuations could be so far out.
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bloodycat
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Post by bloodycat on Jan 23, 2024 10:50:38 GMT
The credit worthiness of the borrower is the first stage in determining whether to lend. The valuation reports determine how much you are prepared to lend.
If the borrower fails the credit checks then if you do agree to lend then you would want a much lower loan to value as there is a much higher risk you will neeed to excercise a charge.
That a couple of loans to borrowers that failed the initial checks were repaid in full possibly justifies not sticking rigidly to the criteria - but we as lenders were misled as to how risky many of the loans were, how they were performing and on the valuations of the assets supposedly providing the security.
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registerme
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Post by registerme on Jan 24, 2024 16:46:48 GMT
What a bleeping car crash.
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rocky1
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Post by rocky1 on Jan 24, 2024 17:31:29 GMT
as i have said many times FRAUD BY MISREPRESENTATION on many loans cooked up by crooked directors and borrowers together.maybe LAG could push administrators to follow this administration up and hand all their findings to the relevant people and get this pair sorted for all their white collar antics. the FCA should not let this get swept under the carpet even if it means even more of their own incompetence comes out.do they think just because brooke and his honcho paid back some of their cayman islands stash they are off the hook and its all hunky dory now.the directors of all these failed p2p platforms should not be allowed to walk away from all this mess that they created for their own financial gains.
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bugs4me
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Post by bugs4me on Jan 24, 2024 22:29:14 GMT
as i have said many times FRAUD BY MISREPRESENTATION on many loans cooked up by crooked directors and borrowers together.maybe LAG could push administrators to follow this administration up and hand all their findings to the relevant people and get this pair sorted for all their white collar antics. the FCA should not let this get swept under the carpet even if it means even more of their own incompetence comes out.do they think just because brooke and his honcho paid back some of their cayman islands stash they are off the hook and its all hunky dory now.the directors of all these failed p2p platforms should not be allowed to walk away from all this mess that they created for their own financial gains. rocky1 - agree 100% with your comments and sentiments as I'm sure many an existing and ex-investor/lender will do also. But the system is that we all know the establishment will always protect itself and if there's just a 1% chance that individuals within the FCA are deemed to be incompetent/lazy/etc then nothing more will happen. Just a look at the PO fiasco which was a total injustice and whilst it could be argued that many of the upper management were not aware of exactly what was going on, although I doubt it, nonetheless I'm sure many of them knew that things were not right but allowed things to carry on whilst continuing to draw their fat salaries and awards. Nonetheless they managed to stretch things out for goodness knows how many years and no doubt it would have continued that way if it wasn't for the ITV docudrama and the media storm it created.
We can all agree that the FCA were and are still not not up to the job. They knew of many P2P companies that were not operating within the regulations but chose to simply kick the can down the road. Many of those FCA staffers have now either left, been promoted or possibly have been busy with the shredding machine. Just look at the COL board and read the experiences of duck who is hitting his head against a brick wall.
Apart from a couple of dead loans I'm out of P2P and luckily for me got out just in time. Others have not been so fortunate and it has had a serious effect on their health and certainly their financial future. But do the establishment care - in a word NO. You may get a few sympathetic responses here and there but a fat lot of good that will do.
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