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Post by GSV3MIaC on Jan 20, 2018 20:30:03 GMT
Because without SOME sort of limit there are big hitters who could/would munch up a whole £200k loan (or maybe more) in one bite. Some sort of 'fair shares' is a requirement if you want a mass market product (there are several places a BH can go to deploy the odd million or two without troubling anyone else, if they really want to).
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Post by jakebullet on Jan 21, 2018 15:14:43 GMT
In fact, why are we even bothering with tranches and prefunding at all? Surely it would be far quicker if we all just allow Lendy to set up Direct Debits straight in their Client Account, and they can help themselves when needed.... <insert sarcasm smiley here> Is there any reason they couldn't have a direct debit? You agree to prefund and 24 hours after the loan goes live they take your prefund from your direct debit linked account. True there's still cash drag of having to have money in your account, but better in your account than Lendy's. If a better use of your money comes along cancel the prefund and you can use it straight away without having to get it back from lendy.
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mikes1531
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Post by mikes1531 on Jan 21, 2018 20:11:14 GMT
Is there any reason they couldn't have a direct debit? You agree to prefund and 24 hours after the loan goes live they take your prefund from your direct debit linked account. Technically I guess not although maybe there are some FCA rules that prohibit it. Someone can correct me if I'm wrong, but AFAIK DDs don't work that quickly. The company requesting the money has to submit their request a few days before the funds are to be taken from your account. Lendy wouldn't know how much to ask for until the allocations are set at the time of the go-live, so they wouldn't get the funds until after the old 48-hour limit. And they'd still have the problem of some DDs failing for lack of funds in investors' accounts or because investors cancelled their DDs without telling Lendy.
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ilmoro
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Post by ilmoro on Jan 21, 2018 21:06:22 GMT
Card transactions arent an instant payment method as far as the receiver is concerned ie they dont actually have cleared cash in the account just a promise of cash. Takes 24-72hrs for transactions to clear. One of the reason why several platforms dont accept card payments (AC the most obvious) as it doesnt comply with their interpretation of client account rules.
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mikes1531
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Post by mikes1531 on Jan 21, 2018 21:12:12 GMT
With so much on the SM, I cannot remember the last loan to completely sell out through pre-funding. Lendy couldn't currently fully fund a trip to Margate let alone a £200k+ tranche so the chances of you getting allocated nothing are slim to remote. People have shorter memories than I thought. DFL030 T2 was fully funded just three days before the above postings.
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mikes1531
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Post by mikes1531 on Jan 21, 2018 21:24:00 GMT
I suspect the rationale is to try to reduce / eliminate the headaches of pre-funded allocations that aren’t paid for. Have Lendy actually said this is a problem for them? Or are they making this change because they want to do it for other reasons? Or because the FCA have told them they must get rid of INPL -- and this is just the first step in that process?
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Post by skint4achange on Jan 22, 2018 9:59:27 GMT
Lendy couldn't currently fully fund a trip to Margate let alone a £200k+ tranche so the chances of you getting allocated nothing are slim to remote. People have shorter memories than I thought. DFL030 T2 was fully funded just three days before the above postings. Perhaps I should have been a bit clearer, Lendy couldn't currently fully fund a trip to Margate let alone a £200k+ tranche in a S**te DFL (Not to include DFL's with more than 150 days to run that have already been dumped!) 
Better?? 
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Post by Paul64 on Jan 22, 2018 10:15:18 GMT
Hi all, thanks for all your comments, which are always helpful. In response to the many comments in this thread, we wanted to add some further points to what's already been communicated.
We have no plans at the moment to scrap our pre-funding model as, even though few other platforms offer it, we do appreciate that many investors find our feature a very useful facility.
To be clear, where there is still availability after we've prioritised those with cash on account, further allocations will be made.
Our decision to amend the feature was largely in response to the trend we have seen whereby a growing number of investors are pledging but without then crediting funds in full. We therefore needed to address this to make the pre-funding facility as fair and transparent for all investors.
There were a few other comments in the thread, such as requests for faster withdrawals, improving our 'go-live' timelines, and IFISA's, which we are already looking at. Indeed, we are hopeful of being able to offer the IFISA in the 2018/19 tax year, in line with our application for full FCA market authorisation.
We will of course, once live, keep the facility under review, to ensure that no investor is disadvantaged by the changes.
Regards
Lendy Support
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jonno
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nil satis nisi optimum
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Post by jonno on Jan 22, 2018 10:36:00 GMT
Hi all, thanks for all your comments, which are always helpful. In response to the many comments in this thread, we wanted to add some further points to what's already been communicated. We have no plans at the moment to scrap our pre-funding model as, even though few other platforms offer it, we do appreciate that many investors find our feature a very useful facility. To be clear, where there is still availability after we've prioritised those with cash on account, further allocations will be made. Our decision to amend the feature was largely in response to the trend we have seen whereby a growing number of investors are pledging but without then crediting funds in full. We therefore needed to address this to make the pre-funding facility as fair and transparent for all investors. There were a few other comments in the thread, such as requests for faster withdrawals, improving our 'go-live' timelines, and IFISA's, which we are already looking at. Indeed, we are hopeful of being able to offer the IFISA in the 2018/19 tax year, in line with our application for full FCA market authorisation. We will of course, once live, keep the facility under review, to ensure that no investor is disadvantaged by the changes. Regards Lendy Support Hi @paul64, thank you for your response. Can I just ask why you have decided to "disadvantage" all of your lenders who have always settled their pre-funding on time, rather than taking specific action against those who are not funding their accounts?
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Post by Paul64 on Jan 22, 2018 10:43:03 GMT
Hi all, thanks for all your comments, which are always helpful. In response to the many comments in this thread, we wanted to add some further points to what's already been communicated. We have no plans at the moment to scrap our pre-funding model as, even though few other platforms offer it, we do appreciate that many investors find our feature a very useful facility. To be clear, where there is still availability after we've prioritised those with cash on account, further allocations will be made. Our decision to amend the feature was largely in response to the trend we have seen whereby a growing number of investors are pledging but without then crediting funds in full. We therefore needed to address this to make the pre-funding facility as fair and transparent for all investors. There were a few other comments in the thread, such as requests for faster withdrawals, improving our 'go-live' timelines, and IFISA's, which we are already looking at. Indeed, we are hopeful of being able to offer the IFISA in the 2018/19 tax year, in line with our application for full FCA market authorisation. We will of course, once live, keep the facility under review, to ensure that no investor is disadvantaged by the changes. Regards Lendy Support Hi @paul64, thank you for your response. Can I just ask why you have decided to "disadvantage" all of your lenders who have always settled their pre-funding on time, rather than taking specific action against those who are not funding their accounts? Hi jonno, thanks for your message. Please be assured that is not our intention. We will be monitoring the platform to identify persistent abusers of the feature, to ensure it is fair to all.
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SteveT
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Post by SteveT on Jan 22, 2018 11:30:21 GMT
Hi @paul64, thank you for your response. Can I just ask why you have decided to "disadvantage" all of your lenders who have always settled their pre-funding on time, rather than taking specific action against those who are not funding their accounts? Hi jonno , thanks for your message. Please be assured that is not our intention. We will be monitoring the platform to identify persistent abusers of the feature, to ensure it is fair to all. It may not be your intention, but it IS what the effect will be. Many hundreds of your best lenders will be obliged to transfer in larger sums than may be necessary, and transfer the excess back out again when they are allocated less than they wanted. Rather than making life difficult for all, simply remove the pre-funding option (for a period) from anyone who doesn't fund their allocation within 24 hours, or else give them secondary priority in the allocation. Leave alone those who always do fund their allocations on time.
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warn
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Post by warn on Jan 23, 2018 18:57:47 GMT
A simple solution would be for everyone to ensure that their cash balance was zero at pre-fund time. So crazy it just might work.  |
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Post by eascogo on Jan 23, 2018 19:01:20 GMT
A simple solution would be for everyone to ensure that their cash balance was zero at pre-fund time. So crazy it just might work. Great but who will be picketing?
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Post by loftankerman on Jan 24, 2018 0:14:13 GMT
Well I'm toeing the line: AVAILABLE FUNDS £0.00 PRE-FUNDING £0. Don't want to go upsetting anyone.
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stub8535
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Post by stub8535 on Jan 24, 2018 0:36:31 GMT
What happens if I pre fund 5 loans that are coming live at the same time and I have pre funded enough for just 2 of my requests. Will my money all be used in the loans in the order listed? Once used up will my requests for the other loans be counted as pre funded and allocated first or as unfunded?
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