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Post by loftankerman on Feb 26, 2018 11:07:44 GMT
Certainly not something I have any knowledge of, but it seems possible that the loan could remain under your name with you having entered into a contract with them to provide any returns from it, to them for a consideration. I'm not sure that that would provide them with any benefit that they are seeking to gain.
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Post by cashmax on Feb 26, 2018 11:14:12 GMT
Sorry about all the smoke an mirrors stuff, suffice to say it doesn't involve transferring anything so far as Lendy are concerned. There really isn't anything sinister here, just someone I know who has seen what they think is an opportunity and they want to test it. If it happens, I'll post up the full details.
My question was really about looking for a gut feel of where these loans will end up if things are left to play out as they are? The impression I get is that Lendy will be doing everything they can to avoid crystallising a loss of capital on a loan and the simplest way to do that is for them to do nothing so far as I can see.
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r00lish67
Member of DD Central
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Post by r00lish67 on Feb 26, 2018 11:21:29 GMT
Can anyone see a downside? The main downside I can see is that it sounds like a fast way to lose a good friend. To be honest, I'm really struggling with the idea that someone with the skills/expertise/insider knowledge to genuinely warrant this being a good idea for all involved, is willing to go down this convoluted path necessitating negligence claims against various parties for the sake of just the interest payments on a £2,500 investment to their benefit - assuming every single claim was successful. Also, I would suggest that individuals/entities who genuinely have unique insights into any financial market tend to be HNW/UHNW individuals/entities. I invest more than £2.5k in loans sometimes, and I'm just some guy - how is this proposition worth them getting out of bed in the morning for? If I were them, I'd be re-mortgaging my house to acquire significant funds to invest, using my "unique insight". Sorry, but it's just a bit of a bizarre concept. Edit: To your later comment about your associate wanting to 'test their theory'. If £2.5k is a really meaningful amount for them to lose, then I'd strongly suggest not doing this. Investing in Lendy is akin to russian roulette at the best of times - investing in their loans that have gone wrong is tantamount to financial suicide. If £2.5k is an amount they can easily afford to lose, then why bother? Why doesn't your friend just track your loan performance out of interest as a hypothetical exercise?
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r00lish67
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Post by r00lish67 on Feb 26, 2018 11:55:24 GMT
My question was really about looking for a gut feel of where these loans will end up if things are left to play out as they are? The impression I get is that Lendy will be doing everything they can to avoid crystallising a loss of capital on a loan and the simplest way to do that is for them to do nothing so far as I can see. So your actual question is, in fact, nothing to do with what you asked initially when you wanted to know mainly about downsides in transferring your investments to someone else? Right, ok. And the question now is - how do we think "some loans - the usual" are going to play out? I'm going to go and do something more constructive with my life now.
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Post by cashmax on Feb 26, 2018 12:16:30 GMT
Thanks for the useful input guys and thanks for being so welcoming.
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Post by mrclondon on Feb 26, 2018 12:39:13 GMT
Just one small comment to add, there are in my opinion only an odd one or two loans on each p2p platform (so far) that could potentially lead to a legal challenge for negligence. Lendy - IoW / FS - Whitehaven and possibly Wind Turbine / MT - Ly.St.An & Birk / TC - possibly NG empire. However any legal challenge can only be commenced when all other recovery options by the platform have been exhausted and the residual balance written off. It could take five or more years before the platforms are able to determine (legally) that there has been a capital loss, and hence before any legal action by lenders can be commenced concerning that loss.
Also worth noting that is some of the cases I've listed, it will only be SM purchasers that will be able to prove they have a potential case of negligence as the negligent event happened after the loan drew down.
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Post by lendinglawyer on Feb 26, 2018 13:12:18 GMT
You could do something like a total return swap papered totally off Lendy. Sure it’ll probably be in breach of Ts&Cs (which probably prohibit any form of transfer - whether actual or synthetic - otherwise than through the SM) but what they gonna do about it? Where’s their loss?
It wouldn’t surprise me if more sophisticated big investors who have a big exposure to Lendy (and/or other P2P sites) haven’t already done something similar. As others have said with such a small sum though and with such a small write-off I struggle to see the counterparty’s potential upside. I would bite their hands off to get out of default loans on those terms.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Feb 26, 2018 13:31:36 GMT
Oooooo errrr, a "Total Return Swap" no idea what that is lendinglawyer but thanks for the comment, I will gen up on it.
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