hantsowl
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Post by hantsowl on Mar 21, 2018 23:24:47 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? My understanding is that lenders in loans would be paid as the loans pay off. There would be little point in waiting for the entire loan book to be wound down because there could well be a few which take a long long time and this would hold up the whole process.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Mar 21, 2018 23:40:01 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? It's a good question. I believe a normal company administration involves reconciling all credits and debts and making one major distribution, that takes weeks, months or years and it doesn't fit with the P2P model where loans are repaid to lots of lenders as and when they repay. The administrator has already shown an unwillingness to follow the P2P model by retaining client funds held on account and not paying interest to date. I think there should be 2 separate administrations, one for creditors and one for ring-fenced lending.
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ceejay
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Post by ceejay on Mar 22, 2018 8:45:21 GMT
Indeed. It seems the pretence? that we were lending to the borrower and that our monies and loan parts formed no part of the platform’s assets seems to have been thrown out of the window in this situation. Very depressing. I expected that if a platform failed that monthly interest, monthly repayments, etc would be made as normal. Now it seems like I might not get a penny of anything for ages and I’m starting to worry that I probably won’t get any interest paid either since the administrators don’t seem to be talking about it but only the capital. We have to examine how this situation would differ from other platform failures and if we are happy to be denied access to our savings for a long period with no warning. I think there are a couple of problems with this statement. First, I don't agree that our loan assets have simply been chucked in with the platform's, as you are suggesting. We've been told that funds are in a client account and that we'll get them back (eventually), and unless you have information to the contrary then I think this concern is misplaced. Second, your expectation that a failed platform would immediately pick up paying interest was, IMHO, wildly optimistic. I've never thought that, even for a millisecond. There is a lot to be sorted out. Ideally, of course, things might carry on as normal and one might imagine some circumstances where the best plan for the platform was to keep it running, in which case you might get lucky. But if the platform itself is not viable, for whatever reason, then carrying on is just not going to happen. And, TBH, if the thought of your money becoming unavailable to you for an extended period of time is unacceptable then you might want to reconsider whether P2P is for you, as it is a principal risk with every loan you make.
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Post by dualinvestor on Mar 22, 2018 8:57:13 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? It's a good question. I believe a normal company administration involves reconciling all credits and debts and making one major distribution, that takes weeks, months or years ......................... I think there should be 2 separate administrations, one for creditors and one for ring-fenced lending. Your understanding is correct except that in a "normal" Administration the distribution does not have to be in one lump sum at the end there can be interim distributions. Certain changes to procedure would need to happen but it would take too long to explain what they are. However client's (lender's) funds are not part of the Administration so although not as defined by law there are effectively two separate Administrations. Lender's money does not belong to Collateral and should continue to be held separately. I don't know, and I would suggest no-one knows including the Administrator and the FCA, when this will be distributed, it could be imminent or there could be a delay. You will recall the Administrator stated a few days ago he was in talks with the FCA. I suspect those talks surround this very matter. However as lenders you have very few rights, you cannot sue a company in Administration, you cannot demand information and with what must be a very fluid situation anything you are told may change moments after it is distributed in good faith. Three weeks may seem a long time but in reality given the regulatory mess Collateral had got itself into, the process has barely begun. Apart from patience there is nothing that you can exercise, venting your anger on here may ease your angst but it is unlikely to achieve anything practical. If you think this is wrong take legal advice.
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Post by dualinvestor on Mar 22, 2018 9:16:34 GMT
Perhaps I wasn’t being clear. I’m saying that the administrator is treating lenders money as if it were an asset of the company in that no attempt is being made, for example, to return cash in our ‘client’ accounts. I think, indeed hope, both of those statements are wrong. The Administrator, through Ms Hodgson's statements has indicated that he recognises that money in loans and the client's accounts belongs to the lenders, and if he could I am sure he would return it as soon as practical but there is some impediment to do so. What that impediment is would be futile to speculate and probably cause unnecesary worry.
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reinvestor
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Post by reinvestor on Mar 22, 2018 9:19:30 GMT
I may have missed this somewhere in the 55 pages and I'm assuming that the talks between the Administrator and the FCA surround the fact that if you are not FCA authorised, you cannot collect in any existing debts.
I run a Hire Purchase finance company and when we moved from being regulated by the OFT to the FCA they held numerous conferences up and down the country. Lots of smaller lenders said that they didn't want to bother registering with the FCA as they were either close to retirement / couldn't be bothered with the increased regulation and costs so they would just not register for interim permission and would run down their book with no further lending.
The FCA and the Consumer Credit Trade Association made it very clear that without interim permission / full permission you could not collect in your outstanding debts.
Doesn't this potentially pose a massive problem in this case given the lack of clarity as to whether Collateral were trading under interim permission or not?
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blender
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Post by blender on Mar 22, 2018 12:17:09 GMT
Hmmm. So the first thing the Administrator had to do was to ensure that all borrowers cancelled their automated repayments? Not sure that would be in the creditor's interests. They did indicate that the FCA had not been completely helpful.
rxdav post yesterday 8.32 'However, when I offered that the FCA has done lenders no favours here she responded (rather ominously) that they were actually currently making matters harder (from her perspective) - but that they would work through this?'
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tx
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Post by tx on Mar 22, 2018 12:23:27 GMT
We lenders are not FCA registered, and the loan agreement ultimately are between us and the borrower, does it mean we can’t collect loans either?
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Post by easteregg on Mar 22, 2018 12:48:14 GMT
We lenders are not FCA registered, and the loan agreement ultimately are between us and the borrower, does it mean we can’t collect loans either? I believe there is a disinction between loans made to individuals which is highly regulated and loans made to origanisations. The loans agreements - if they have been made correctly - should be enforcable. All P2P platforms should have a living will which details who should take over the rundown of the loan book. If Collateral is to be liquidated then this would seem to be one option, however in this case I'm sure it would make more sense to sell the business or loan book to another organisation.
I am concerned if there has been a bluring of what is client (i.e. our) money (i.e. capital plus interest) and what is the company money, but I would like to hear something concrete from the administrator. I'm also concerned that the administrator may have no legal obligations to us a lenders, as their role is to maximise the return to creditors, and we should not be creditors (unless there has been bluring of funds).
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Post by dualinvestor on Mar 22, 2018 12:55:07 GMT
We lenders are not FCA registered, and the loan agreement ultimately are between us and the borrower, does it mean we can’t collect loans either? Under common law (the system of law in England and Wales not covered by statute law) the loan exists between you, the lender, and the borrower, Collateral was only the agent. Statute law overides common law and certain loans could be governed by the Consumer Credit Act. If there are such loans and neither you or Collateral held Consumer Credit Licences, or suitable FCA alternatives, at the time they wee made, there might be difficulties. The property loans are almost certainly not in this category. If in doubt you can take legal advice but I would suggest that might be costly and not advance your situation, I am sure the Adminstrator and/or the FCA are seeking to find a solution if this is a problem and you shold await news from them. Worrying about it now without concrete evidence one way or another could cause you needless anxiety.
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blender
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Post by blender on Mar 22, 2018 14:39:14 GMT
The living will arrangements are required by FCA and are designed to work after the platform is deceased - and buried with its FCA status. In the worst case they just may need to implement the will before they can collect repayments. Nothing is lost.
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averageguy
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Post by averageguy on Mar 22, 2018 15:32:06 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? My understanding is that lenders in loans would be paid as the loans pay off. There would be little point in waiting for the entire loan book to be wound down because there could well be a few which take a long long time and this would hold up the whole process. That is my understanding after I mentioned repayment of individual loans during a conversation I had with Jessica
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kaya
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Post by kaya on Mar 22, 2018 16:59:00 GMT
A question that I can't find any further information on , is when do we actually expect to receive interest now ?
The statement from Gordon Craig states as per Collateral original Terms Gosh 11025 Be delighted if we even get back the whole capital! It is very disappointing if the Administrators do not intend to resurrect even a static website. Indeed, if collateral really would like to repay a little of the faith & trust we invested in them, then surely, working with the Administrator, they could even give us a website that could supply updates on a loan-to-loan basis. Where is our ever-helpful Collateral Rep now?
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moist
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Post by moist on Mar 22, 2018 17:09:34 GMT
A question that I can't find any further information on , is when do we actually expect to receive interest now ?
The statement from Gordon Craig states as per Collateral original Terms Gosh 11025 Be delighted if we even get back the whole capital! It is very disappointing if the Administrators do not intend to resurrect even a static website. Indeed, if collateral really would like to repay a little of the faith & trust we invested in them, then surely, working with the Administrator, they could even give us a website that could supply updates on a loan-to-loan basis. Where is our ever-helpful Collateral Rep now? dole queue?
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11025
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Post by 11025 on Mar 22, 2018 17:34:24 GMT
A question that I can't find any further information on , is when do we actually expect to receive interest now ?
The statement from Gordon Craig states as per Collateral original Terms Gosh 11025 Be delighted if we even get back the whole capital! It is very disappointing if the Administrators do not intend to resurrect even a static website. Indeed, if collateral really would like to repay a little of the faith & trust we invested in them, then surely, working with the Administrator, they could even give us a website that could supply updates on a loan-to-loan basis. Where is our ever-helpful Collateral Rep now? Well I didn't make the statement , I just asked the question 😀
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