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Post by robberbaron on Apr 4, 2019 16:44:07 GMT
Liam is not the problem. The problem is the perverse incentives that the FCA regulations have created. You could put Mother Theresa at the head of Lendy and she would soon turn into Liam.
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Post by robberbaron on Apr 4, 2019 14:22:09 GMT
AIUI They dont. They get the initial arrangement fee upfront (c2%) and an ongoing monitoring fee paid on a monthly basis from sums retained on drawdown in the client account. They dont get the ongloing fees upfront as they arent due (like interest) until the charging period has lapsed. Lendy are no different to any other P2P platform. AIUI the money is still in the client account after a default and can still cover Lendy's fees. There is no indication that Lendy stops getting its fees paid in the event of a default.
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Post by robberbaron on Apr 4, 2019 14:15:34 GMT
When your capital is not at risk and yours fees are taken upfront (even if some of it is then paid out monthly) your incentive is volume not quality. It's an excellent business model and by the time the defaults start mounting you're already rich.
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Post by robberbaron on Apr 3, 2019 17:13:50 GMT
Clearly Lendy and H** believe otherwise.
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Post by robberbaron on Apr 3, 2019 16:46:49 GMT
Do I have to pay for my own legal advice to try to get a settlement, or is Lendy working on this for the benefit of ALL lenders? Lendy previously clearly stated that they expected very few lenders to pay for their own legal advice. Furthermore, Lendy stated they are paying for the legal advice for the benefit of all the lenders. As I understand the most recent update it seems we lenders are all left on our own (?). After all, Lendy is acting as the agent for all lenders in these loans, and should work for the benefit of all, just as they explicitly wrote in previous updates. You are not imagining it. Lendy expects YOU to pay their designated lawyers to strike out a claim that arose from THEIR gross negligence.
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Post by robberbaron on Apr 3, 2019 16:41:23 GMT
Is this really true? That since lendy cannot expect to get any more money from lenders, they have no financial interest in doing anything for us whatsoever and we should expect to lose all our principal over the next ten years? Is it that simple? Any alternative views? It's actually worse than that. Lendy receives most of its fees upfront. This means its sole interest is in getting as many new loans online as quickly as possible. Not only do they have no financial interest in recovering the defaulted loans but they also have no interest in having loans that pay regular interest without defaulting. A loan could default the day after launch and they couldn't care less financially. I withdrew my funds once I understood that.
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Post by robberbaron on Apr 3, 2019 15:31:05 GMT
- Stocks and shares - maximum downside 100% loss, maximum up side theoretically unlimited
- P2P lending - maximum downside 100%, maximum upside about 12%
The maximum upside/downside are of little relevance. The maximum downside of a lottery ticket is a couple of £, the maximum upside is several millions £ but you are virtually guaranteed to always achieve very close to the maximum downside. What matters is how likely all the possible outcomes are.
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Post by robberbaron on Apr 3, 2019 11:57:09 GMT
If you look at stock 100 years ago I suspect it’s all worthless now ior penny shares . The benefits of long term stock involvement are at worst acecdotal skill of the investor (betting) and at best evidence that indices overtime go up - hence the tracker - the problem with the index going up is that the index doesn’t count those that go bust and fall out of index and counts the newly successful so unless you somehow pick the winners of the future from the losers you will as in the 100 years later model without changing shares eventually lose the lot This is incorrect. Most major equity indices like the S&P500 take into account the performance of failing companies until they drop out of the index and only include the performance of new companies once they are included in the index. Also merely looking at the raw index actually underestimate performance since the impact of dividend reinvestment is not included. Look at total return indices instead.
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Post by robberbaron on Apr 3, 2019 11:34:24 GMT
Atleast with the stock market shares do recover, with P2P your money goes into a black hole never to be seen again. Tell that to Japanese investors who are still waiting to recover after nearly three decades.
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Post by robberbaron on Apr 2, 2019 18:43:36 GMT
They were also mentioned today in this article. The Telegraph must really love Lendy.
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Post by robberbaron on Apr 2, 2019 17:19:02 GMT
looking at the list of claimants,how the hell did these loans get past LENDYS rigorous 10/15 stages DD.to late now i know but lendy sure led us into this mess.LIAM/LENDY you say you will be answering questions.where has the millions of pounds of our money gone. Because "the probity of the borrower is irrelevant if the security is good" as SS/L used to say.
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Post by robberbaron on Apr 2, 2019 8:07:07 GMT
Given the propensity of certain members of this forum to get irritated by the imaginary sensitive information being posted on this thread I would suggest they simply ignore it.
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Post by robberbaron on Apr 2, 2019 7:10:06 GMT
They stopped making Medieval books some time ago so this library can only get more valuable over time. Only if you completely ignore the other side of the equation: demand.
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Post by robberbaron on Mar 9, 2019 14:07:39 GMT
I think it's fair to say that the interests of Lendy and its investors are not what you would call "aligned" Add to that the FCA requiring P2P platforms to have no skin in the game by being totally unexposed to the loans.
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Post by robberbaron on Feb 4, 2019 13:30:50 GMT
0% I only have a small 3 digits amount left which I have written down. Most of my funds have been withdrawn for over a year.
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