Monetus
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Post by Monetus on Jan 17, 2020 18:58:02 GMT
Unfortunately, it is with regret that due to some health-related personal issues I am no longer going to be able to continue in my role at Lendy Action Group. I will also be stepping down from my other commitments within P2P in the near future that will include being a representative on creditors committees for both Collateral and Lendy. If feasible, suitable replacements may be appointed accordingly.
Lisa Taylor will now be heading up Lendy Action Group with the support of a highly-motivated group that will continue to fight the cause for investors during the administration. She has some great plans on how to take the group forward and has my full support.
As well as resigning from the Creditors' Committees of both Lendy and Collateral , I will also be taking a step back from these forums and the P2P industry as a whole. P2P has certainly been an interesting - if stressful - journey over the past several years and it has been a pleasure to meet many of you (both on here and in real life).
I would like to take this opportunity to thank you for the years of interesting conversation here, as well as your support in regards to Collateral and Lendy. I wish you all the best of luck in life, as well as your future investments.
Adam Bunch
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Monetus
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Post by Monetus on Jan 17, 2020 14:12:44 GMT
Well done.
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Monetus
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Post by Monetus on Jan 16, 2020 17:33:37 GMT
Insolvency effectively trumps any "wind-down plan" to date and insolvency has an extremely narrow focus. This means that both legally and contractually all bets are off when it comes to the crunch and the devil is in the detail (and often investors weren't privy to any of it).
Where you thought you had a binding agreement with a platform as per its terms and conditions.... suddenly you may not.
Do the new "enhanced" wind-down plans released in December genuinely change anything whatsoever? Like most investors, I don't have the appropriate qualifications in insolvency law to really understand. So answers on a postcard...
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Monetus
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Post by Monetus on Jan 15, 2020 23:53:33 GMT
What is the reason that the LAG website will be closing down please (didn't you register it in the first place, or have I imagined that?) Lack of use/engagement so I'm told - FB is far more popular with people it would appear and not much point duplicating info. I am not involved with the fundraising it's being done by Lisa Taylor I am sure she will post more detail shortly.
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Monetus
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Post by Monetus on Jan 15, 2020 22:36:09 GMT
How we feeling about interest showing up tomorrow, eh?
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Monetus
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Post by Monetus on Jan 15, 2020 22:13:10 GMT
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Monetus
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Post by Monetus on Jan 8, 2020 10:29:54 GMT
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Monetus
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Post by Monetus on Jan 6, 2020 20:18:12 GMT
It appears that the borrower may have lost their major car manufacturer sponsor (finally) having a quick gander at their social media.... something of a "re-brand" on the cards it seems.
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Monetus
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Post by Monetus on Jan 5, 2020 14:06:11 GMT
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Monetus
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Post by Monetus on Dec 28, 2019 12:02:10 GMT
To myself as an insider it is all so simple but never explained well by people that know so here goes... To be clear you are only able to be a creditor in a P2P lending business AIUI, rather than having direct rights to the loan book and its security, if you have a poorly set up lending business. What that means practically is that if you have been lending / gifting money directly to a lending business such as how Lendy operated for a long time I understand, that makes you very exposed and makes them an illegal bank operating without a banking licence under FSMA 2000. That is what RSM walked into. It was public domain knowledge how they operated and I understand it was in the filed accounts and in the terms and conditions, its just no-one cared when offered 12% pa. Do you remember how investors who challenged the Lendy model and quality of lending were shot down by other forum members who wanted to carry on believing ? I can confirm categorically that we are a P2P lender, not a bank, fully authorised and correctly structured so that we are agent to the lender and that you are not a creditor of the firm, rather have full rights to the loans you have funded and all of their security. Anything else would not be legal without substantially different authorisations from the FCA or PRA. Our detailed wind down plan has cost a lot of money and is an extremely detailed document formed with RSM and runs to countless pages and is a complete operating manual and financial model of how this would run if ever needed. You will be pleased to know, as will our shareholders, that the plan has a surplus after all RSM management costs and without any need to take a penny from investors. Unlike some platforms' recent disclosures, we have not taken the option provided by the FCA to have an enlarged management fee deducted from the borrower loan repayments as with a £400m+ loan book and a sensible economic model we do not need that. I hope that helps but would welcome more questions that will get as robust and precise an answer as possible. Stuart, you are talking about how Lendy operated when it first launched up until late 2015 when the t&cs were changed for it to be article 36H compliant P2P lender. Lenders under the new structure (model 2) are not creditors of Lendy and that has been confirmed by RSM. The only lenders who are creditors of Lendy are the model 1 lenders who were lending directly to Lendy in four legacy loans. Lendy model was designed by top level financial & legal firms and was full compliant with FCA legislation of course as otherwise they wouldnt have ben authorised.
Model 2 lenders are seeking to be creditors of Lendy for any shortfall on recoveries on the basis of misselling, false agency etc.
Yes Stuart you are referring to Model 1 loans (where investors were lending directly to Lendy and loans were on the balance sheet) which in hindsight was ridiculous. However this is a relatively small part of the loan book. Lendy changed their model in 2015 in order to be 36H compliant with Lendy acting as agent to investors and the vast bulk of the loan book was lent under this new structure. The new 36H model was signed off by Clarke Wilmott and Grant Thornton and received full FCA authorisation in July 2018. Furthermore, RSM were also employed as backup provider in a similar manner to yourselves and in a statement released upon their appointment in May when Lendy went into administration said: " RSM have previously reviewed the Companies’ systems as part of a stand by contingency planning service. Accordingly, RSM are well placed to facilitate an orderly wind-down of the book." Upon the insolvency of the platform the wind-down has been anything but orderly. I hope that would not be the case for Assetz...
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Monetus
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Post by Monetus on Dec 26, 2019 21:50:19 GMT
This is a very valid point iren . Firms with very detailed and well funded wind-down plans with with serious and well prepared partners for those wind-down plans are key to the risk being reduced back to principally loan risk. We have invested substantial sums in our own systems and also in the detailed plan with our wind-down partner RSM and we believe that this is a best in class plan. We expect this will be of great comfort to investors on top of our blanket property security policy on lending nowadays and 500+ loan diversification of the loan book. Can you confirm what would happen in the (hopefully unlikely) event that Assetz Capital became insolvent? On the surface it would appear that any "wind down plan" would be rendered null and void because it would be superseded by insolvency law? As others have touched upon, RSM/Baker Tilly was also backup provider to Lendy and had a wind down plan in place with them that didn't get activated as it became insolvent. Investors are now seeing huge chunks taken from their "trust asset" recoveries by RSM in order to pay creditors of Lendy Ltd in a distribution waterfall that ranks the platform's default interest ahead of investor principal. On the surface wind-down plans only appear useful in a utopian, unicorn world where platforms decide to shut down voluntarily rather than due to financial issues. I'd wager that platform insolvency is likely to be the most common reason for any P2P platform to go out of business (we've seen several already). How can we be sure that the same won't happen again here and what safeguards are in place to protect investors in case of platform insolvency?
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Monetus
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Post by Monetus on Dec 23, 2019 17:48:34 GMT
Thanks to the thread starter for the link to the 23/12 report. As an investor, it's disappointing, but unsurprising, that BDO didn't even bother sending me an email about it. I would guess most people with money in COL won't even know about this update. BDO continue to unimpress greatly.
On the update, in my opinion, just 1 small property loan recovery in the last 8 months is pathetic progress.
Secondly, the comment about not making any interim distribution because it's uneconomic is a bit insulting. It's not uneconomic to me. While I am not suffering hardship, I have had to pull in my horns a lot and put off spending decisions because of the money I have "lost" in COL. And I had money in all the small property loans that have so far been recovered (in full). Any sort of interim payment would be very helpful to me, and many others.
I'm far from being a millionaire investor. I, unwisely, invested some of my savings with a high return FCA authorised company to produce some monthly income to live on, only to find they weren't FCA regulated at all. With hindsight, it was silly of me to invest in the high risk P2P sector - but in my defence I would never have been so stupid to invest through an unregulated company that was operating unlawfully. As a victim in this, I consider BDO's performance to be inadequate, pedestrian and self serving and I find their attitude to be arrogant.
I shall be making a complaint to BDO, with a view to escalating it to the useless FCA if BDO completely ignore my complaint - like they did my previous email (which was a simple question not a complaint but they didn't even give me the courtesy of a reply despite charging me obscenely high fees for their work).
In February it will be 2 years since COL shut down and the loanbook was a trifling £17 million or so I believe. Not a single chattel has been dealt with. I know these things take a bit of time and there were some difficulties at first, but I find the lack of progress this year to be totally unacceptable. The creditors' committee meetings are getting increasingly far apart and the amount of feedback we are getting on what is happening is getting ever smaller. I'm unsure exactly what teeth the CC has but I had concerns at the start when I discovered the make up of the Committee. It's clear to me the interests of the people on the Committee do not align with mine and it's inevitable they will act in the best interests of themselves and those they represent, rather than individual, small scale 'man/woman in the street' type savers/investors.
It all smells a bit like a big, fatcat stitch up to me.
Merry Xmas to you GeorgeT I realise it can be disheartening and frustrating when things are kept so closely under wraps because it feels like nothing is happening. All I can say is that there are justifiable reasons why progress has been at an almost glacial pace in regards to property/chattel recoveries and also why very limited information has been released so far, but I am bullish on progress accelerating significantly in the new year. If it doesn't then some serious questions will definitely need to be answered. Big investor, small investor...millionaire investor...I think we're all in the same boat really in that we'd all like as much of our money back as possible, and as soon as possible. I certainly haven't seen any evidence of any Committee members acting immorally or having any kind of conflict of interest etc in my dealings on the Committee so I think your concerns relating to it being a "big, fatcat stitch up" may be misplaced. The regulatory status of Collateral and the FCA's involvement with the register is a matter that's outside the remit of this administration but is something that Duck and his 'lings (including myself) are continuing to explore in vigorous detail. I would encourage all investors to take action on this when the time is right as I think there's a serious case to be answered by the FCA and it will soon be time to ramp up the pressure once again. Given what has occurred at Lendy and FS I'm not sure FCA regulation would have really changed much... For disclosure, the only connection I have with BDO is a couple of free pens and perhaps some mints from the previous Committee Meeting.
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Monetus
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Post by Monetus on Dec 20, 2019 13:40:04 GMT
And remember that the money going to Lendy goes into the pool that "Model 1" loans get paid from. The very same pool that will also face claims from Lendy Group/Liam Brooke, potential legal claims from former employees, any potential legal claims from borrowers, legal claims from investors for any shortfall suffered following the "Distribution Waterfall" as per section 3.1.3, plus any other claims filed by Model 2 investors for negligence or breach of agency/trust on a loan-by-loan basis or global basis which are accepted by the administrators. Also the same pool that RSMs fees (a projected 2.5m in the first year) will come out of + the additional costs of third-party lawyers, professional advisors and disbursements.
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Monetus
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Post by Monetus on Dec 20, 2019 12:13:04 GMT
Hey, at least Liam didn't get the job (yet). 8>. There's still a recently-vacated position as CEO of the FCA available for him to snap up...
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Monetus
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Post by Monetus on Dec 19, 2019 22:44:56 GMT
bring on the FCA and the FOS this farce from LB/LENDY needs sorting out once and for all.so the biggest risk to lenders all along was the platform/LB shafting all of us from the very start. Mr Bailey appears to have got the top job for his efforts.... www.ft.com/content/a65bfdca-2286-11ea-b8a1-584213ee7b2bMerry Xmas all!
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