jlend
Member of DD Central
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Post by jlend on Mar 5, 2018 17:12:37 GMT
Dear all The refreshed T&Cs are by and large a tidying up exercise to reflect changes we have been making to the model over recent months, and had previously communicated, for example, cash preferencing. The main addition is the new section 16, which relates to a new voting feature that will enable us to seek the views of 'eligible lenders' before we take action in relation to a loan. Further information on this feature will be communicated to all investors ahead of launch. It is important that all investors familiarise themselves with the new set of T&Cs in their entirety. They should be self-explanatory, but if you have any questions please contact Support. Regards Lendy Support Lendy is not required to monitor the Borrower or its obligations under the loan or security contracts.' So will lenders have to contact borrowers?
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p2p2p
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Post by p2p2p on Mar 5, 2018 17:39:01 GMT
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Post by jakebullet on Mar 5, 2018 17:42:16 GMT
Says it all then when I got the email notification I didn't bother to click the updated t&c's button 'cos it would be as clear as mud. Thanks to the good people of this board for doing what lendy should have done and highlighting the differences.
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nyneil
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Post by nyneil on Mar 5, 2018 17:51:17 GMT
If you consider this to be an unfair contract, you can report it to the FCA, here: www.fca.org.uk/consumers/unfair-contracts/reportFor the p2p industry to become / remain a valid asset class, it seriously needs to clean up its act and behave in a responsible way. It is unacceptable to merely find someone who wants some cash and ask others to provide it, without accepting a reasonable degree of responsibility. If they are to act on behalf of a large number of borrowers and lenders and are being paid for it (service fees to the borrower), then they need to perform an acceptable level of due diligence and continue to provide that throughout the life of the loan. If they don't have a REQUIREMENT to do that, there is no incentive to at least attempt to keep risk to manageable levels for all parties. |
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Post by loftankerman on Mar 5, 2018 18:19:09 GMT
This hands free, 'nothing to do with us' approach Lendy have their sights on looks great to me. It sounds like I could borrow a few million plus the interest for a couple of years. By the time the loan was into IA, I could be long settled with a new identity enjoying life in Argentina. It adds a whole new dimension to the 'Refinance or Sale of Security' exit strategy. Sort of makes me wonder who my new neighbours might be though.
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nyneil
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Post by nyneil on Mar 5, 2018 19:05:20 GMT
This hands free, 'nothing to do with us' approach Lendy have their sights on looks great to me. It sounds like I could borrow a few million plus the interest for a couple of years. By the time the loan was into IA, I could be long settled with a new identity enjoying life in Argentina. It adds a whole new dimension to the 'Refinance or Sale of Security' exit strategy. Sort of makes me wonder who my new neighbours might be though. It might be me, lol
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Post by harryvederci on Mar 5, 2018 19:06:25 GMT
...... I could be long settled with a new identity..... how about 'August Templar'  
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Post by Proptechfish on Mar 5, 2018 19:13:35 GMT
ok so my take on this would be 'Lendy Ltd' is the agent (operates the platform, introduces the lender to the borrower, provides the legal paperwork for each agreement, facilitates the transaction). 'Saving Stream Security Holding Limited' would be the security enforcer ( takes over the activated contract and remains in place until completed) if the loan repayments fall behind or the loan defaults entirely, it would be SSSH Ltd that enforces the security, not Lendy Ltd.
Maybe i'm wrong, but i think its fairly simple. Are people seriously suggesting Lendy have just thrown open the doors to free money and just can't be arsed to stop people running off to the other side of world. If that was the case they would be shut down in a heart beat.
From what i can understand about the new clause 16. ('Opinion of Lenders') sounds intriguing. I believe it's going to give lenders more autonomy on their individual investments through a democratic vote. Essentially you have money invested in a problematic loan, you will have options over what to do about this loan and you will vote along with all the loan participants, and the majority moves forward. Not sure what the options would be, maybe a renegotiation of principle, or return, or a term extension, or ban that individual from borrowing more than £10 for next 6 generations, whatever.
It sounds interesting, i'll wait and see, but i don't get what the dramas all about
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mary
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Post by mary on Mar 5, 2018 19:29:37 GMT
From what i can understand about the new clause 16. ('Opinion of Lenders') sounds intriguing. I believe it's going to give lenders more autonomy on their individual investments through a democratic vote. Essentially you have money invested in a problematic loan, you will have options over what to do about this loan and you will vote along with all the loan participants, and the majority moves forward. Not sure what the options would be, maybe a renegotiation of principle, or return, or a term extension, or ban that individual from borrowing more than £10 for next 6 generations, whatever. It sounds interesting, i'll wait and see, but i don't get what the dramas all about Agreed. Voting can only be a positive development for the many lenders sounding off about the defaults on this forum, I am sure that many would vote for a quick solution if offered with only a modest lost of capital for some of the 14 loans currently more than 1 year overdue. Obviously each loan is different and some will have to resort to legal remedies, but a vote on short term pain over a long term maybe better recovery option is a valid thing to discuss and democratically decide. I wait to see how Lendy put this into action.
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Post by Proptechfish on Mar 5, 2018 19:30:05 GMT
From what i can understand about the new clause 16. ('Opinion of Lenders') sounds intriguing. I believe it's going to give lenders more autonomy on their individual investments through a democratic vote. Very democratic. Right up to the point Lendy Bonds take a 51% stake of every loan and somehow democracy seems somewhat illusionary.   Yup, nailed it
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brianlom1
Member of DD Central
He's not the Messiah, he's a very naughty boy!
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Post by brianlom1 on Mar 5, 2018 20:09:32 GMT
Lendy, Under the section ' How to become a lender' clause 7: 'Lendy is not required to monitor the Borrower or its obligations under the loan or security contracts.' So if 1000 lenders take part in a loan, each and every one of them needs to monitor the - often anonymous - borrower? Oh come on Lendy, you really do need to do some work for your money! If you can't be bothered and still expect people to invest, the very minimum you would need to do is identify who the borrower is, what the planning application reference is, etc etc BEFORE investments are made. Have you read the trust Pilot reviews? They are far from complimentary about your attitude to lenders. Will this really help you become fully authorized by the FCA? Uh-oh, that sounds familiar. I seem to recall something similar in ReBS' Ts&Cs, I wonder what happened to them?
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Jeepers
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Post by Jeepers on Mar 5, 2018 20:18:29 GMT
'Lendy is not required to monitor the borrower' pass me the borrowers phone number then and we'll have a chat.
Same old story, introduce the loan, collect your fees and interest and then don't give a s**t what happens after that because it's only the lenders at risk with no incentive for Lendy to recoup the loan!
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Post by df on Mar 5, 2018 20:55:27 GMT
From what i can understand about the new clause 16. ('Opinion of Lenders') sounds intriguing. I believe it's going to give lenders more autonomy on their individual investments through a democratic vote. Essentially you have money invested in a problematic loan, you will have options over what to do about this loan and you will vote along with all the loan participants, and the majority moves forward. Not sure what the options would be, maybe a renegotiation of principle, or return, or a term extension, or ban that individual from borrowing more than £10 for next 6 generations, whatever. Assets Capital practice this. It's a very good feature. I'm glad Lendy is going to implement this.
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Post by eascogo on Mar 5, 2018 22:42:27 GMT
Thanks lady, very useful. I think a good coms person would have provided what you have done. Paul you should have lead this.... Paul64 has used the smart, quick, and fairly painless DOC way of comparing old with new. However the DOC file showing all the changes is not easy to decipher. As an alternative I compared the two versions side-by-side visually, pasting in old and new version next to each other whenever I saw changes. Take your pick. Lendy TandC changes.rtf (68.53 KB)
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mikes1531
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Post by mikes1531 on Mar 5, 2018 23:17:42 GMT
It would appear that we lender/investors have to agree to the terms of the Loan Contract with the borrower.
Do we have any right to see the terms we've agreed to?
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