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Post by charliebrown on Jul 2, 2017 23:11:11 GMT
I agree, this is a disgrace.
This appears to be fraud and FS has facilitated this via bad (no) internal controls.
i believe we should start a formal complaint. FS does not deserve to keep their FCA accreditation. If an accredited platform works this way then the accreditation is meaningless.
I fear the total lack of control from FS will make them a target for more such loans. I accept that most borrowers do borrow in good faith but the controls need to be in place to protect investors.
I'd like to see a stronger stance from FS. Demand that the construction be restarted (or even started) and monitor things very closely. If that does not happen then bring in the receivers and get investors at least some of their money back (I would not expect anywhere near a full recovery). I'm also surprised that the local council doesnt have something to say about it, it can't just be left as a festering hole in the ground for months/ years can it? Wouldn't local residents complain?
FS you've let all your investors down, even the ones that haven't got money in this particular loan.
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Post by charliebrown on Jul 2, 2017 11:18:56 GMT
According to FS a court case was won a some time ago and the borrower agreed to pay the loan and interest from their successful action which they obviously have not. I think we need to remember that winning a court case and receiving payment from the resulting judgement are two different events -- often separated by a considerable time. Do we know whether the borrower actually has received any payout from the successful case yet? Because the loan obviously significantly exceeds the sum lent ... 09dolphin : ? ? ? According to the FS updates the borrower hasn't yet won the court case, it's been adjourned. I'd also agree that winning a court case and receiving the compensation monies are not the same thing, no guarantees at all, I also find the court case a totally irrelevant smoke screen. Even if monies are received by the borrower will he hand them over to pay off this loan? Seems a long shot at best. This loan is pure incompetence by FS. It proves that any scammer can scam FS without much hard work.
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Post by charliebrown on Jul 2, 2017 0:11:28 GMT
Not specific to this loan, nor specific to FS, but it seems to me that due to poor practice, perhaps due to lack of scale and lack of resources, p2p platforms are a soft target for fraud and/ or skulduggery.
There's been lots of cases of wildly inaccurate valuations, total lack of due diligence, poorly managed loans, poorly managed defaults, useless/ deceitful updates and borrowers with incredibly shady pasts.
i can't see any happy ending to this particular loan. FS have shown major flaws and weaknesses.
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Post by charliebrown on Jun 25, 2017 8:44:53 GMT
Why wouldn't Lendy be transparent and tell us how much is currently in the provision fund? Why does it need to be hidden? There could be several reasons - the popular one is that LY is hiding it because the PF is going to be hard to cover future losses, which could deter investors who (wrongly IMO) rely on it. Also, there are questions about whether or not LY are using this discretionary to cover other losses, such as SBL loans and maybe the Tranches they have been providing away from the platform to prop up loans (PBL081 & DFL002) < I believe that this part has been denied by LY on this forum Another theory (one I tend to agree with) is that the PF is hidden because LY is going to cover all near future losses regardless of what is in the PF, but continuing to claim the PF is covering it (which could be factually correct if LY just keep topping it up) to mask the fact that there is an underlining problem surrounding inadequate security Or, it could just be a PITA to continue to update the PF amount - when it was on the site for everyone to see, it was just a formula that showed 2% of the Live Loans - they can no longer do this, as the PF methodology has changed, and there was a recent loss that used the PF. This is unlikely, as there has been zero indication of what is in the PF since it disappeared. All good points, CD. The lack of transparency is an issue for me. It has been debated on this forum as to whether LY did the right thing by bailing out the Garden Centre, including all accrued interest; there were not many people who predicted that outcome I think on balance that helped prove the PF does exist and that LY are trying hard to retain investor confidence. As has been said though, it's unsustainable. It's been said that at 12% we all know the risks and should expect losses from time to time. I've even said that to myself. But nothing kills confidence like losing invested capital. I've had 4 loans default on me at Funding Circle and I immediately stopped investing and sold out of all the loans I could (some are stuck in a "troubled" state and can't be sold). When friends ask about P2p I continue to recommend LY and MT but I always say Funding Circle should be avoided. Seasoned investors factor in some loses but not everyone does and might withdraw when loses are incurred. I've forgotten what my point was, but I think there's a point somewhere in there
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Post by charliebrown on Jun 24, 2017 2:42:20 GMT
Why wouldn't Lendy be transparent and tell us how much is currently in the provision fund? Why does it need to be hidden?
Once the PF doesn't cover investors' losses and Lendy can no longer claim "no investor has ever lost a penny" do you think they'll just give up bailing out loans altogether? People will never remember the loans Lendy bailed out, they will always remember the loans where investors lost money. So once they break their duck will they just give up on the PF.
I personally think the PF is a good idea for investor confidence, but making it hidden and discretionary raises too many questions. All those investors holding all those loans on the defaults tab must be wondering what help the PF will offer.
i can't see Lendy being able to keep their "no investor has ever lost a penny" claim intact much longer.
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Post by charliebrown on Jun 8, 2017 16:36:57 GMT
I'm currently trying to get rid of The Chalet but it's about as popular as a fart in a spacesuit.
under the current system where listing a loan for sale means you can lose weeks worth of interest I hope Lendy adds that to the PF rather than takes it as additional platform profits. Something tells me that's wishful thinking.
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Post by charliebrown on Jun 8, 2017 14:24:31 GMT
seems unfair to have a long general discussion about investing in shares on a thread titled - Why I am leaving Lendy. Yes I tend to agree with you, it started as a general statement about what I intend to do and just grew from there!!! People just do not know what to do with their cash 'cos L do not seem to worry that the people who have helped their business grow are concerned about the growing SM. I have huge stamp collection which I started as a child 'cos my dad was an avid collector. I might dig that out soon with a view to selling. I have in that collection every British stamp issued up to about '73, he used to spend quite a lot on his collection and a quick scan of ebay has shown me collectors are prepared to pay some high sums for the rarer ones plus packing and postage will be easy due to size of the commodity" Edit At this point I shall say no more as it seems to have upset a few people.......so, you can carry on with the doom & gloom .......anyone seen my coat? Would you need to pay postage to post a stamp? Couldn't you just stick it on the envelope and it would post itself.
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Post by charliebrown on Jun 3, 2017 0:06:39 GMT
I previously posted that I was concerned about the number and value of defaulted loans. At the time the replies were along the lines that it's normal, get used to it, if you can't take the heat get out of the kitchen.
However, reading the threads on this forum against each defaulted loan it's possible to see that a lot of them had concerns raised against them right back at the DD stage. Hence, if the loan hadn't been written we could have avoided the defaults. It's not just the benefit of hindsight, concerns were raised about the quality of VRs, legal issues and borrower quality.
It's not only Lendy, I've got one loan in particular over at FS that looks sure to default and the story that led up to where the loan is today was gross incompetence by FS.
I'm starting to lose confidence in p2p in general, which is a shame.
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Post by charliebrown on May 28, 2017 17:45:46 GMT
ok, we finally got an update: 27/05/2017 We are chasing the borrower for interest. fundingsecure , do you really think this is an appropriate update for this property? What about the insurance settlement due in January? What about the repayment of as much of the loan as possible? I understand was Friday night before a bank holiday weekend.. but come on! what about a bit of professionalism and respect? Yep, insulting. I have no other words, speechless.
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Post by charliebrown on May 28, 2017 3:39:09 GMT
Only £550 invested when my normal is £1,300, happy days! Also happy to see the back of this loan as and when it is resolved/ paid/ lost. Mike We all want to see this resolved and seems we don't stand to lose too much. However, that's not the point, right? The point is, the borrower has been able to continue borrowing against a development he hasn't been developing. That is gross incompetence by FS. It's shocking. This incompetence has exposed FS investors to loses. Presumably the borrower could walk away right now and make more "profit" than if he actually finishes the build. If he's a fine upstanding citizen and actually continues with the build then that's pure luck for us investors. I personally dont consider any court case relevant at all. We might as well say the borrower has promised to repay when his lottery numbers come up. Not relevant. The relevant point is FS has created this situation. Looking at something like a 400% LTV and all we can do is cross our fingers and hope. i can't continue to do business with FS after this. I'm going to withdraw and favour MT and SS. Or maybe I'll ask FS to lend me 800k against a hole in the ground worth 200k, that seems a simple way to make money (sorry for being facetious, I'm pretty angry about this to be honest).
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Post by charliebrown on May 27, 2017 15:51:24 GMT
Update I wonder if the borrower thinks he is in a position to provide "offers" (which presumably won't cover the Interest), because of the problems recovery via sale may provide On principle, I don't think we should accept any offer from the borrower, unless it's for the full amount owed. if we allow someone to borrow money against an asset, default the loan and then offer to buy back the asset at significantly less than the amount borrowed I think it makes the whole system look ridiculous. Perhaps that's easy for me to say as I'm luckily not in this loan.
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Post by charliebrown on May 27, 2017 15:33:43 GMT
When I invest in a FS loan I usually invest pretty big to get the bonus interest etc. My typical plunge is >10k. I've just checked my holdings in this loan and miraculously it's only 300 quid. I'm not sure how I ended up with only 300 quid but I literally punched the air when I realised my personal losses will be "manageable". having seen the pics and read this thread and FS updates I have already mentally written off my 300 quid. The serious part, this is disgraceful. The management of this is gross incompetence by FS. I have significant investment on FS and will be removing all of it as soon as I can. P2p lending is for most of us about trust and confidence. FS has lost all my trust, confidence and respect over this. Not impressed! I think it's pretty much all been said when it comes to this loan. I too am winding down my investment on FS as I like to sleep nights. Five tranches of a loan handed out, only one phase of the work completed and that's the purchase of the site. My guess is the site might be worth £200,000 when we have handed him over half a million with reassurances from FS that work was well advanced and that this loan would not exceed 70 percent of the value of our security. Unreal. I can only hope that the faith shown by FS in this borrower turns out to be justified, but I for one have had my faith in the platform shot to pieces. As one poster has said, we lend on security, not the outcome of court cases and the possibility of the borrower doing the right thing in the future. Like you, my one saving grace is that my holding in this is a small one. i think we're all in agreement. For me this looks like gross negligence and there should be consequences for FS. Whilst I personally don't stand to lose a fortune, that's not really the point. Any positive outcome to this is going to be pure luck and good fortune. Even if this works out ok for us, I'm still getting out of FS after this.
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Post by charliebrown on May 27, 2017 2:14:10 GMT
I'm holding a small amount of the castle. I'm holding to term, ive never tried to offload any of it. This loan has been quite unpopular from start to finish, not entirely sure why. it's probably because of the picture that's one butt ugly looking "castle".
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Post by charliebrown on May 27, 2017 1:56:47 GMT
When I invest in a FS loan I usually invest pretty big to get the bonus interest etc. My typical plunge is >10k. I've just checked my holdings in this loan and miraculously it's only 300 quid. I'm not sure how I ended up with only 300 quid but I literally punched the air when I realised my personal losses will be "manageable".
having seen the pics and read this thread and FS updates I have already mentally written off my 300 quid.
The serious part, this is disgraceful. The management of this is gross incompetence by FS. I have significant investment on FS and will be removing all of it as soon as I can. P2p lending is for most of us about trust and confidence. FS has lost all my trust, confidence and respect over this.
Not impressed!
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Post by charliebrown on May 19, 2017 12:06:00 GMT
Did anyone set their pre-funding for Tranche 7 high enough that they have any useful information regarding the maximum allocation amount that they'd be willing to share? In short, did anyone ask for more than they were allocated? I asked for 6k and got 6k, so unsure what the max allocation was. i feel this is a good loan, but on reflection now feel I've got too much of this. It's currently 12.5% of my total Lendy holdings. Too much of a good thing? considering dropping some back on the SM, queue is currently at 57k.
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