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Post by peerlessperil on Feb 28, 2018 23:16:36 GMT
The Q&A that follows the Administrators letter is very clear:
I have lent money via the Collateral platform do I need to do anything?
No. Subject to the borrower continuing to make payments of interest and capital those will be returned to you in accordance with the Collateral terms and conditions
Whether all the loans on the platform (now ring-fenced) actually exist is a separate matter, and is not addressed.
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IFISAcava
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Post by IFISAcava on Feb 28, 2018 23:18:10 GMT
Pleased that I had almost no uninvested funds on the platform, just a little bit of interest from renewed bling. Now we wait to see if the interest run happens tomorrow, and if the various loans due to repay now actually do so. I guess the most complex issue is going to be the completion of multi-tranch projects for which funding is not yet complete. Presumably other p2p platforms may pick up the slack. How would you know?
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SteveT
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Post by SteveT on Feb 28, 2018 23:18:47 GMT
My working assumption is that lenders’ cash on the platform that wasn’t already in a completed (drawn down) loan will form part of the company’s unsecured liabilities. If so, I assume lenders will need to prove claims as creditors unless the sum is less than £1000. However I imagine this will get clarified tomorrow, once dozens of people ask the same question.
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registerme
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Post by registerme on Feb 28, 2018 23:18:53 GMT
The Q&A that follows the Administrators letter is very clear :
I have lent money via the Collateral platform do I need to do anything? No. Subject to the borrower continuing to make payments of interest and capital those will be returned to you in accordance with the Collateral terms and conditions Whether all the loans on the platform (now ring-fenced) actually exist is a separate matter, and is not addressed. Neither does it address loans not drawn down, or cash on account.
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btc
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Post by btc on Feb 28, 2018 23:20:26 GMT
Do we have to guess the amount? Can we not have access to the information in the database?
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dermot
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Post by dermot on Feb 28, 2018 23:21:20 GMT
Pleased that I had almost no uninvested funds on the platform, just a little bit of interest from renewed bling. Now we wait to see if the interest run happens tomorrow, and if the various loans due to repay now actually do so. I guess the most complex issue is going to be the completion of multi-tranch projects for which funding is not yet complete. Presumably other p2p platforms may pick up the slack. How would you know? The phrase "I guess" is a bit of a clue that I'm guessing, rather than speaking with any form of certainty ...
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invester
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Post by invester on Feb 28, 2018 23:24:31 GMT
I take it is asking too much that the reps might come back on and answer some questions?
The company is done for now but surely providing a bit of clarity to investors is not against the FCA rules.
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dermot
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Post by dermot on Feb 28, 2018 23:24:52 GMT
Congratulation to whoever the observant person was who spotted the FCA registration had disappeared from the footer. Take a bow you win the prize! Indeed! Now if that eagle-eyed person could just check every other P2P platform in the same way ....
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jcb208
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Post by jcb208 on Feb 28, 2018 23:25:56 GMT
About time they removed that bare faced lie on there home page and put up a correct statement
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Monetus
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Post by Monetus on Feb 28, 2018 23:26:19 GMT
So in essence, the FCA did their job here! They clearly noticed that Collateral was operating without being authorised with puts lenders at risk and have seemingly stepped in to ensure lenders funds are safeguarded. The system works!  |
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IFISAcava
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Post by IFISAcava on Feb 28, 2018 23:26:27 GMT
I don't get it.
From the letter: "The Company was operating in the belief that it was authorised and regulated by the Financial Conduct Authority under interim permission. It has transpired that this is not the case and consequently the Company has ceased lending."
But they knew since 1 Feb, as they took it off their email footers. They knew they weren't authorised after that.
And if they had to keep client money separate under interim permission (is this correct? I don't know, it is for full FCA of course), why would they then STOP doing this?
Or is it that even before 1 Feb, they weren't under FCA when they thought the were (see other thread as to which names are FCA registered)?
Still a lot of Qs.
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Post by beepbeepimajeep on Feb 28, 2018 23:26:34 GMT
is Gordon Craig, the Administrator, the same guy that was running Collateral before? should the fact that he is still allowed to run the show be seen as a big positive ? No you are thinking of Gordon White
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greatmarko
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Post by greatmarko on Feb 28, 2018 23:27:11 GMT
When I joined Collateral a year ago the following was present at the bottom of every page on their website: "Collateral (UK) Limited is authorised and regulated by the Financial Conduct Authority (FCA) - FCA Number - 656714 (IP Issued)" This was removed from their site at the start of this month, without any notification to lenders. Similarly, the Terms & Conditions I agreed to when signing up stated: "29.2. The Company shall be permitted to make amendments to these Terms from time to time and shall notify you of such amendments via the Platform. Your agreement to any amended terms shall be indicated either by way of acceptance via the Platform or by acceptance upon making a new Lending Agreement. For the avoidance of doubt the terms upon which you enter into a specific Lending Agreement shall not be amended for the duration of that Lending Agreement. However any further Lending Agreement which you enter into may be subject to amended terms." It appears that the Terms & Conditions HAVE been amended WITHOUT any such notification or consent! The same Terms & Conditions on the Collateral website at the start of this week, instead read: "14.5. We reserve the right to update or amend these Terms from time to time to comply with any laws or regulations or to meet our changing business requirements. We may make such changes without your prior consultation or specific agreement but we will always post the changes on the Platform. By continuing to use the Platform, or our services in allocating funds you have deposited, you agree to be bound by the terms of any updates and amendments implemented in accordance with this clause 14.5." THIS IS A FUNDAMENTAL CHANGE, which according to the T&C's I signed up under, I should have been notified and explicitly agreed too! Furthermore the following two clauses had been inserted into these new T&C's which were never present in the T&C's I signed up under: "• We are not authorised or regulated by the Financial Conduct Authority and you are not given any of the protections when using any Collateral platform or service which arise when a platform or provider is authorised or regulated." "• In particular you should note that if Collateral was to become insolvent then any money held by it would not be held in accordance with the FCA’s client money rules, which require in particular that client money is held separately from a firm’s own money, and it is likely you would rank as an ordinary unsecured creditor. Ordinary unsecured creditors rarely make any recovery on insolvency." Sources: Cached copy of T&C's from Dec 2016 | Cached copy of T&C's from Feb 2018If, according to the administrators letter, Collateral believed they were "operating in the belief that it was authorised and regulated by the Financial Conduct Authority under interim permission", why did they update their T&C's to explicitly state that they were not?! |
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oldgrumpy
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Post by oldgrumpy on Feb 28, 2018 23:28:21 GMT
Hopefully most of our (undrawn down) money will still be in an account at Col's bank. Withdrawals have been reported to have been quick right up to Monday. They have not gone into administration because of insolvency. Where the administration fees will come from, we'll see.  I hope dodgy borrowers don't start any funny business when it comes to repayments.  Will the platform run-down be made by the Collateral "team" under RefreshRecovery's supervision? |
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IFISAcava
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Post by IFISAcava on Feb 28, 2018 23:28:52 GMT
So in essence, the FCA did their job here! They clearly noticed that Collateral was operating without being authorised and have seemingly stepped in to ensure lenders funds are safeguarded. The system works! but they're not - funds (cash) are now unsecured creditors. FCA has made that worse. The loan agreements we have with the borrowers remain in tact, but always were independent of Collateral.
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