New Available Loans process

And me. The default loans scenario doesn't directly affect me at present, but it seems thoroughly unreasonable that anyone holding these (unsellable) loans may not get their fair & full return if a positive outcome is achieved.

All sales parts should be automatically de-listed as default status is achieved (email notification) and accrue fully till the bitter end.

Tagging Paul64 Lendy Support savingstream in case this has gone unnoticed.

Will it not make things more straightforward and avoid confusion because the amount on the secondary market will always be the length of the sale queue at that time.

There was a recent DFL at 12% that I was avoiding because it was always on the SM with about 200 k available and I thought that's a bad loan that I won't be able to get shot of and then I discovered that in fact that was all held by LY because they hadn't been able to fully fill it and in fact the sale queue was zero so I was in there straight away to benefit from a couple of weeks of 12% on some spare cash and would have been sooner if I had known that earlier.

On LY you don't know the length of the sale queue unless you are an existing investor. This change will solve that problem, will it not.

If it were to be judged as against FCA rules it would surely be replaced by some other penalty mechanism, otherwise the SM queues would become even longer...at least for the undesirable loans.  In line with one of my previous posts, the current mechanism is just a poor way, albeit a simplified way, of managing the market.  If the loan is desirable the cost to you is minimal as there is no queue.  If the setup were a more normal marketplace where price helps balance supply and demand then your penalty in selling an undesirable loan would be offering a lower selling price.  Without the ability to set price your penalty is loss of earnings instead.  Arguably that's fair, after all it's only a penalty when there is no demand for what you're selling.

Secondly, I think Lendy would easily justify that the secondary market is a service that they offer which you are rightly paying for...out of withheld interest.  If they were to offer a more normal trading market place with a bid/offer spread you would be paying for the service through the spread.  The alternative to paying for the service could be to not have the service at all and we all carry the loan parts to full term...and that would make a lot of us very uncomfortable.

Where Lendy are going to have to make some important clarifications, as per this thread, is justification of them jumping the queue and trapping us into prolonged periods of loss of interest as that is arguably and patently unfair.

With forethought like this I'm amazed you haven't started your own platform.

Ten bob @leopardcat?

In the end it comes down to that decision for each of us.  For example, I don't do FC any more because I disliked the direction their model took.  I'll stick with Lendy if they prove capable in managing the inevitable defaults.  Losing pennies on 'for sale' items becomes irrelevant if you have the confidence to hold for the full term when the back office team have a proven track record on recoveries (this was also FC's downfall in my book).  To give Lendy some credit, they haven't let us down yet...but they've allowed a substantial default list to build up.  It may be early days yet (for the platform), but let's see how they do.

The strange thing is adhering to FCA regulations does not necessarily trigger the new processes we have seen so far. They are merely moving the goalposts for other reasons. While many other platforms abide by FCA rules, they operate differently. For example, tranches are listed as separate loans on both PM and SM. You could still maintain your position in the SM queue and exit Tranche 1 of a specific loan even if Tranche 4 or 5 does not fill. In other words, one does not need to wonder about how many more tranches lay ahead when evaluating a loan.

Well, no use crying over spilt milk. It is decision making time.