IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Feb 28, 2018 23:29:33 GMT
Hopefully most of our 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.  Our cash on account
|
|
boundah
Member of DD Central
Posts: 368 
Likes: 430
|
Post by boundah on Feb 28, 2018 23:30:09 GMT
Note to self: don’t leave piles of cash sitting unlent in P2P holding accounts for longer than necessary. Transfer it back into bank until needed.
|
|
Monetus
Member of DD Central
Posts: 1,179
Likes: 2,961
|
Post by Monetus on Feb 28, 2018 23:30:40 GMT
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. Agreed if true. But this hasn't been confirmed as yet. I feel Jessica in the office is going to be having a busy day tomorrow... The big burning question is how will cash balances and funds in loans that aren't drawn down be treated?
|
|
p2pmark
Member of DD Central
Posts: 218
Likes: 187
|
Post by p2pmark on Feb 28, 2018 23:32:02 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. I guess there are lots of different types of FCA permission. And they didn't have the right one for P2P lending? Regarding the money not being held in segregated accounts, given lenders had a reasonable expectation that they were (Collateral did not, in my inexpert opinion, make reasonable efforts to inform us that they were not), is it possible that they'll be treated as if they were?
|
|
GeorgeT
Member of DD Central
Posts: 1,322
Likes: 1,576
|
Post by GeorgeT on Feb 28, 2018 23:32:18 GMT
I'm glad to have read the letter and found out that my initial thought has proved to be totally correct.
I had feared this would send major shockwaves through the industry but given it is the fact that they were being naughty boys and their FCA permission had run out I don't think it should impact too much on other platforms once the facts are known by investors.
I hope the FT haven't gone off and published something damaging before the letter from the administrator was in circulation.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Feb 28, 2018 23:32:50 GMT
Note to self: don’t leave piles of cash sitting unlent in P2P holding accounts for longer than necessary. Transfer it back into bank until needed. Yep, something tells me nobody will leave cash in any P2P ever again
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Feb 28, 2018 23:33:34 GMT
One thing strikes me, that this is not an insolvency event yet, as the administrator has said otherwise.
But there seems no way the company will be making any money going forward, and there will be ongoing costs to pay for the wind-down.
At some stage the money is going to run out. At first the administrator could be paid for by the creditors agreeing a haircut to the repayments, but as the loanbook winds down the chance of insolvency gets higher. At some point in the future it'll be cheaper to write it all off rather than paying let's say £20k a month to recover £20k.
|
|
dermot
Member of DD Central
Posts: 863
Likes: 517
|
Post by dermot on Feb 28, 2018 23:34:02 GMT
From memory, over 80% of my investments in CO are for bling loans, since I was an early investor and more or less reached my platform limit before too much property came on the scene.
I'm naively hoping that they will repay "naturally" over the next 6 months, as operating under administration without FCA approval may preclude loans being renewed, as a renewed loan is effectively a new one. Unlike an extended one, I suspect.
|
|
registerme
Member of DD Central
Posts: 6,624
Likes: 6,437
|
Post by registerme on Feb 28, 2018 23:34:15 GMT
I'm glad to have read the letter and found out that my initial thought has proved to be totally correct. I had feared this would send major shockwaves through the industry but given it is the fact that they were being naughty boys and their FCA permission had run out I don't think it should impact too much on other platforms once the facts are known by investors. I hope the FT haven't gone off and published something damaging before the letter from the administrator was in circulation. ./shakes heads, mutters, and goes off to bed
|
|
jontyab
Member of DD Central
Posts: 117
Likes: 79
|
Post by jontyab on Feb 28, 2018 23:36:47 GMT
Note to self: don’t leave piles of cash sitting unlent in P2P holding accounts for longer than necessary. Transfer it back into bank until needed. Yep, something tells me nobody will leave cash in any P2P ever again Yes, Please do empty your Unbolted accounts, people. My balance is not being touched as far as I'm concerned and I could use the allocations  Firing off withdrawal requests for the scraps everywhere else now, though. Edit: To clarify here, I mean to imply nothing suspicious or malveasant going on, just that holding a cash balance to encourage loan allocations is how Unbolted lending works. A joke.
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Feb 28, 2018 23:37:24 GMT
Note to self: don’t leave piles of cash sitting unlent in P2P holding accounts for longer than necessary. Transfer it back into bank until needed. Yep, something tells me nobody will leave cash in any P2P ever again Quite. And thus will never be able buy high demand loan parts on the at par SMs. Variable rate SMs and debit cards are the way to go (a la ABL)
|
|
jcb208
Member of DD Central
Posts: 838
Likes: 638
|
Post by jcb208 on Feb 28, 2018 23:39:30 GMT
Lets hope they find a way to continue the business perhaps being sold off as noted in the email
"The Company is reviewing how it might best continue the business, a number of potential routes forward have been identified but these are still being assessed. "
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Feb 28, 2018 23:40:03 GMT
Yep, something tells me nobody will leave cash in any P2P ever again Yes, Please do empty your Unbolted accounts, people. My balance is not being touched as far as I'm concerned Firing off withdrawal requests for the scraps everywhere else now, though. I think Unbolted has full FCA no? We will see any effect on % allocations in next few Unbolted loans I am sure!
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Feb 28, 2018 23:41:40 GMT
One thing strikes me, that this is not an insolvency event yet, as the administrator has said otherwise. But there seems no way the company will be making any money going forward, and there will be ongoing costs to pay for the wind-down. At some stage the money is going to run out. At first the administrator could be paid for by the creditors agreeing a haircut to the repayments, but as the loanbook winds down the chance of insolvency gets higher. At some point in the future it'll be cheaper to write it all off rather than paying let's say £20k a month to recover £20k. It was already losing money!
|
|
dermot
Member of DD Central
Posts: 863
Likes: 517
|
Post by dermot on Feb 28, 2018 23:42:43 GMT
About time they removed that bare faced lie on there home page and put up a correct statement I wondered about that - but they may be doing some work to convert it to a read only system, so that repayments are made until matters are 'clarified', but it's a bit of a stretch to call it an "upgrade"!
|
|
