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Post by red on Mar 21, 2018 9:56:37 GMT
I've read that the administrators will be attempting to refinance loans, but what obligation are those that have loans from the collateral platform under to acquiesce to such a proposal? Are they not able to take the position that they are happy with the terms they agreed and will continue to make repayments as per their agreement?
Obviously projects that still require drawdowns will be happy to refinance to receive the extra funds they need...
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archie
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Post by archie on Mar 21, 2018 10:16:55 GMT
I've read that the administrators will be attempting to refinance loans, but what obligation are those that have loans from the collateral platform under to acquiesce to such a proposal? Are they not able to take the position that they are happy with the terms they agreed and will continue to make repayments as per their agreement? Obviously projects that still require drawdowns will be happy to refinance to receive the extra funds they need... No loans will be able to renew, repayment or refinance are the only options.
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Post by dualinvestor on Mar 21, 2018 10:31:31 GMT
I've read that the administrators will be attempting to refinance loans, but what obligation are those that have loans from the collateral platform under to acquiesce to such a proposal? Are they not able to take the position that they are happy with the terms they agreed and will continue to make repayments as per their agreement? Obviously projects that still require drawdowns will be happy to refinance to receive the extra funds they need... You need to treat everything you hear or read with caution. I suspect there is some truth in the Administrators trying to refinance loans along with other things they are trying to do simultaneously to protect everyone's interests. As @new2p2p says debt is bought and sold every day but it does not mean it will be or even if it is possible in this case. The Administrator will not give a running commentary on what he is doing and I expect if he does sell some or all the loans or deal with them in some other way lenders will not find out about it until after it has happened.
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SteveT
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Post by SteveT on Mar 21, 2018 10:33:10 GMT
No loans will be able to renew, repayment or refinance are the only options. That's likely to be the Administrator's aim, but I suspect many loans will get "extended" by default, where a borrower is not yet able to repay / refinance but can continue to service interest, either monthly or upfront for a longer period. Many COL borrowers would have been expecting to be permitted to extend / renew and it may take them quite some time to make other arrangements. It would not be in lenders' best interests for the Administrator to default loans and appoint LPA Receivers before borrowers have been given adequate time to seek refinance.
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TitoPuente
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Post by TitoPuente on Mar 21, 2018 10:47:49 GMT
I feel protected by the FCA. They do a great job... NOT!
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bugs4me
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Post by bugs4me on Mar 21, 2018 10:53:50 GMT
<snip> It would not be in lenders' best interests for the Administrator to default loans and appoint LPA Receivers before borrowers have been given adequate time to seek refinance. I would agree but there's only a certain amount of money to go round for the Administrator to earn their fees. I expect they will take whatever route they consider to be the most effective.
Whilst they may be sending out signals of full repayment to investors I'm also aware that it's in their interests to keep everything or is it everyone calm.
Personally I expect to take a haircut so do not share their optimism. Hope I'm wrong.
Obviously it may have been a totally different scenario if another P2P platform was able or willing to step in but this appears to be a non-starter.
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blender
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Post by blender on Mar 21, 2018 11:50:48 GMT
Borrowers are in the driving seat here, not the Adminstrator. Borrowers have loans with lenders, directly, and they can chose to repay early if they wish, within the terms. Whether they refinance to repay is up to them, but repayment and refinance is the same thing with Col now, because the refinance will be with a third party. Administrators can encourage borrowers to repay, and can introduce them to third party lenders, but it does seem that any concerted effort to encourage repayment of loans might be outside the legitimate role of the platform - which is still in place. The role is to manage the loans and the living will provides the agreed procedure. Loans which have run to term and would normally be refinanced through Col are a different matter. They will not be refinanced - no FCA approval even if they wanted to.
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Post by mrclondon on Mar 21, 2018 13:30:52 GMT
But they messed up things so badly that even if they restarted in Jersey (or elsewhere they can work without the FCA authorisation) they would never be able to come back at the same level of users and confidence. Agreed, but in passing its worth noting that the rules of the Guernsey financial regulator made life difficult for Relendex when they were originally domiciled there. Operating from (e.g.) the baltic states and targeting UK residents may become significantly harder post brexit (I'm not sure whether I mean 30th Mar 19 or 31st Dec 20 here) depending on any UK-EU financial services clauses in the separation and trade agreement(s).
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rgog
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Post by rgog on Mar 21, 2018 13:59:48 GMT
Borrowers are in the driving seat here, not the Adminstrator. Borrowers have loans with lenders, directly, and they can chose to repay early if they wish, within the terms. Whether they refinance to repay is up to them, but repayment and refinance is the same thing with Col now, because the refinance will be with a third party. Administrators can encourage borrowers to repay, and can introduce them to third party lenders, but it does seem that any concerted effort to encourage repayment of loans might be outside the legitimate role of the platform - which is still in place. The role is to manage the loans and the living will provides the agreed procedure. Loans which have run to term and would normally be refinanced through Col are a different matter. They will not be refinanced - no FCA approval even if they wanted to. From an admittedly selfish point of view (I am almost entirely in the bling loans) the run down seem fairly straight forward. My expectation is that most loans will run their course, as there is little incentive to pay back early and if they wish to refinance that may take most of the time available. Any that do not repay/refinance will default and the assets will be sold (hopefully) for enough to cover outstanding amounts. Basically it would seem the process will take as long as my longest outstanding loan.
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rxdav
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Post by rxdav on Mar 21, 2018 14:10:27 GMT
'Basically it would seem the process will take as long as my longest outstanding loan.'
From my conversation with Jessica yesterday I would say that whilst some loans will repay early (via refinance), the whole process will likely take as long as it takes for the lonest duration loan of any given individual lender to be redeemed - be it by early repayment, at term or default sometime thereafter. Which seems to me pretty much what you would have got if COL were still trading - without the option to sell loan parts and/or roll over that is.
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bugs4me
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Post by bugs4me on Mar 21, 2018 14:33:54 GMT
Why? If Administrator realise (as I suspect) that there isn't enough cash for them, they will give up on Collateral and passing the ball to a competitor (2 have already offered 'help') would be their best move to do. They would save the lenders' and the borrowers. The only ones to loose would be the previous Collateral owners. But they messed up things so badly that even if they restarted in Jersey (or elsewhere they can work without the FCA authorisation) they would never be able to come back at the same level of users and confidence. I would suspect that any fees have already been deducted and placed into the old COL coffers. So any platform taking this on would probably be operating on a free of charge basis plus when, or if, anything hit the fan then the fingers would be pointed at them. Offering to 'help' and giving guidance is different in my book to taking over the loan book responsibility. It's a poisoned chalice IMO.
Nonetheless the Administrator will do whatever they feel obliged to do. There's basically nothing investors can do to influence this or very little.
I doubt if the previous owners restarted anywhere within the universe in the P2P marketplace there wouldn't be a single investor willing to place their funds with them.
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oldgrumpy
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Post by oldgrumpy on Mar 21, 2018 15:26:11 GMT
I doubt if the previous owners restarted anywhere within the universe in the P2P marketplace there wouldn't be a single investor willing to place their funds with them.
Yes. Messrs Currie, Currie and White have shot their own bolt! We'll be on the lookout for new platforms with known associates of those individuals as (posing as) directors though.
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blender
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Post by blender on Mar 21, 2018 15:31:42 GMT
Why? If Administrator realise (as I suspect) that there isn't enough cash for them, they will give up on Collateral and passing the ball to a competitor (2 have already offered 'help') would be their best move to do. They would save the lenders' and the borrowers. The only ones to loose would be the previous Collateral owners. But they messed up things so badly that even if they restarted in Jersey (or elsewhere they can work without the FCA authorisation) they would never be able to come back at the same level of users and confidence. I would suspect that any fees have already been deducted and placed into the old COL coffers. So any platform taking this on would probably be operating on a free of charge basis plus when, or if, anything hit the fan then the fingers would be pointed at them. Offering to 'help' and giving guidance is different in my book to taking over the loan book responsibility. It's a poisoned chalice IMO.
Nonetheless the Administrator will do whatever they feel obliged to do. There's basically nothing investors can do to influence this or very little.
I doubt if the previous owners restarted anywhere within the universe in the P2P marketplace there wouldn't be a single investor willing to place their funds with them.
The scope for other platforms helping seems to be limited to the loans being refinanced on another similar platform, if the borrowers wish it. I guess there were some new loans which had not been drawn down, and these could be placed through another platform, once the borrower is released from any obligations to Col lenders. It sounds like Col is being liquidated, and the platform not sold. However the platform technology is presumably an asset of Col (subject to the contract with the developers) and you would think that the Administrator would like to get something for it.
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yorky
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Post by yorky on Mar 21, 2018 16:28:54 GMT
I guess the bling loans if the bling still exists would be welcome by another platform to take over as these were always popular among lenders
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tx
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Post by tx on Mar 21, 2018 23:14:40 GMT
Always appreciate people like you sharing personal communication with Jessica. I hope her comment holds more truth than just goodwill. Something always puzzle me, and not sure if anyone had asked, would our capital be returned AFTER the entire loan book been wound down? And everyone paid at the same time? Or is it some people get paid back there cap earlier than others?
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