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Post by masquedefer on Dec 2, 2017 14:57:37 GMT
Does anybody know specifically where in the terms and conditions Lendy is permitted to sell their new DFL issues in priority to earlier loans already registered on the secondary market?
Whilst I concede that Lendy can reasonably do this for earlier dated unsold loan parts, however I find it totally inequitable that Lendy can prioritise their later loan issues.
Does anybody fancy a class action against Lendy on this?
To Paul at Lendy. If you still follow my postings I hope you take note and have the common sense to ensure that you rectify this anomaly so that your platform operates in a fair and balanced manner especially at this critical time of failing investor confidence.
Also I wonder what the FCA will think of this inequitable practice?
This has been posted on the DD and Lendy sites.
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copacetic
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Post by copacetic on Dec 2, 2017 15:58:54 GMT
It was introduced in the weekly email 11/08/17 and was discussed in the following thread: p2pindependentforum.com/thread/9738/new-available-loans-processWhile they said it was to comply with FCA requirements it was more likely, IMO, to save themselves underwritting costs. I doubt there is much scope for legal action as Lendy don't offer any guarantees with selling out on the secondary market, frustrating though it is to have the goalposts moved part way through your investment. You should invest as if you were going to hold any loan you put money in until term and assume that if a loan defaults capital could be tied up for years. It's probable that investors initially investing in any long dated loan with a view to selling out after a few months contributed to the current illiquid secondary market and glut of suspended loans. Lendy got away with offering junk loans because investors would snatch up any loan with interest on account but when the defaults started to pile up the bubble burst. I guess you could do what many others have done with unfair conditions (like Lendy skipping the SM queue or witholding interest on queued loan sales) in a competitive P2P environment - vote with your feet! |
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SteveT
Member of DD Central
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Post by SteveT on Dec 2, 2017 16:46:59 GMT
Does anybody know specifically where in the terms and conditions Lendy is permitted to sell their new DFL issues in priority to earlier loans already registered on the secondary market? When you accepted Lendy's T&Cs, by lending money via their platform, you agreed (under clause 23) that Lendy may change things as they see fit, "to meet our changing business requirements". Incidentally, you also agreed (under clause 9.6) that they may amend the terms of your loan agreements with borrowers without consulting you 
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Post by masquedefer on Dec 2, 2017 17:46:21 GMT
Thank you both for responding and for the link to the main discussion thread on this.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 2, 2017 18:00:06 GMT
Does anybody know specifically where in the terms and conditions Lendy is permitted to sell their new DFL issues in priority to earlier loans already registered on the secondary market? When you accepted Lendy's T&Cs, by lending money via their platform, you agreed (under clause 23) that Lendy may change things as they see fit, "to meet our changing business requirements".Incidentally, you also agreed (under clause 9.6) that they may amend the terms of your loan agreements with borrowers without consulting you Blimey! I'm even MORE pleased now that I showed 'em a clean pair of heels several months ago. 
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binkle
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Post by binkle on Dec 3, 2017 16:54:25 GMT
Although I think they are still bound by terms that are reasonable, and in this case i am sure they could make a case, however annoying...
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mikes1531
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Post by mikes1531 on Dec 10, 2017 16:39:00 GMT
Incidentally, you also agreed (under clause 9.6) that they may amend the terms of your loan agreements with borrowers without consulting you While that bothers me a bit, it's nothing compared to the fact that they have made a contract between me and the borrower but refuse to let me view the contract!
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ingwer
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Post by ingwer on Dec 12, 2017 14:10:43 GMT
It seems DFL008 is a little different with the tranche released yesterday. The main loan and new tranche are appearing as separate loans like Lendy did with the 1% CB offers. So you can buy and sell from either loan without impacting the other as they have their own separate queue. Not sure if this is the new way forward or a mistake. But it seems a fairer way to operate.
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bloodycat
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Post by bloodycat on Dec 12, 2017 15:22:34 GMT
It seems DFL008 is a little different with the tranche released yesterday. The main loan and new tranche are appearing as separate loans like Lendy did with the 1% CB offers. So you can buy and sell from either loan without impacting the other as they have their own separate queue. Not sure if this is the new way forward or a mistake. But it seems a fairer way to operate. Based on previous loans the queues will get merged when the new tranche draws down. In the case of tranches with cashback they merge once the cashback is paid after the monthly interest run.
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ingwer
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Post by ingwer on Dec 13, 2017 10:39:29 GMT
Thanks cat. Shame. I was ready to praise Lendy for listening.
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sl75
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Post by sl75 on Dec 14, 2017 11:17:01 GMT
Looks like this is a change after all... the new tranche has merged, but there's ANOTHER new tranche in the pipeline, for what I think is about the amount of the unfunded portion of the previous tranche.
Presumably they think there are still enough people who are blindly investing into every new tranche as though it were a completely new loan to make this an effective strategy... (or at least more effective than leaving an unfunded portion at the head of a very slow moving queue)
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Post by skint4achange on Dec 14, 2017 11:23:01 GMT
Looks like this is a change after all... the new tranche has merged, but there's ANOTHER new tranche in the pipeline, for what I think is about the amount of the unfunded portion of the previous tranche. Presumably they think there are still enough people who are blindly investing into every new tranche as though it were a completely new loan to make this an effective strategy... (or at least more effective than leaving an unfunded portion at the head of a very slow moving queue) If that is the case, I would be happy with that. Would mean that the big boys with massive pre funding would take on the more unpopular loans rather than having big chunks of unpopular developments jumping the queue on the SM as you stated.
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Post by missydoom on Dec 15, 2017 13:25:58 GMT
Looks like this is a change after all... the new tranche has merged, but there's ANOTHER new tranche in the pipeline, for what I think is about the amount of the unfunded portion of the previous tranche. Presumably they think there are still enough people who are blindly investing into every new tranche as though it were a completely new loan to make this an effective strategy... (or at least more effective than leaving an unfunded portion at the head of a very slow moving queue) It is understandable that these are appearing on the secondary market but in all cases I think that they are being given an additional day remaining compared to the main loan to ensure that the new tranches appear at the top of the sales list. Pretty sneaky way of making sure they sell first...
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