webwizard
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Post by webwizard on Mar 6, 2018 6:12:34 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. It may be more democratic but one clause in there undoes it all...
16.10 The outcome of a vote shall NOT be binding and the final decision to be taken in connection with a Lender Matter shall rest absolutely with Lendy.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 6, 2018 8:49:39 GMT
Assets Capital practice this. It's a very good feature. I'm glad Lendy is going to implement this. It may be more democratic but one clause in there undoes it all...
16.10 The outcome of a vote shall NOT be binding and the final decision to be taken in connection with a Lender Matter shall rest absolutely with Lendy.
They need that because it might turn out that lenders vote for an option that subsequently turns out to be unviable. There was a case on another platform where a reciever recommended a course of action which was rejected by lenders. By in failing to follow a receiver recommendation the likelihood was that the receiver would resign, which was not condusive to recovery, therefore the vote outcome had to be discounted.
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nyneil
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Post by nyneil on Mar 6, 2018 11:32:54 GMT
It may be more democratic but one clause in there undoes it all...
16.10 The outcome of a vote shall NOT be binding and the final decision to be taken in connection with a Lender Matter shall rest absolutely with Lendy.
They need that because it might turn out that lenders vote for an option that subsequently turns out to be unviable. There was a case on another platform where a reciever recommended a course of action which was rejected by lenders. By in failing to follow a receiver recommendation the likelihood was that the receiver would resign, which was not condusive to recovery, therefore the vote outcome had to be discounted. Fair comment and at least they are going to ask for the lenders' opinion
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star dust
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Post by star dust on Mar 6, 2018 12:39:30 GMT
Mod Hat On/ I've just merged the two threads about the new terms, it seemed best to keep all the comments and information in one place for now and in the future. Apologies if this has resulted in some disjointed 'conversations', but hopefully it will still be largely intelligible.  |
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SteveT
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Post by SteveT on Mar 6, 2018 12:50:22 GMT
Mod Hat On/ I've just merged the two threads about the new terms, it seemed best to keep all the comments and information in one place for now and in the future. Apologies if this has resulted in some disjointed 'conversations', but hopefully it will still be largely intelligible. A new high for the P2PIF ?!  
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Mousey
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Post by Mousey on Mar 6, 2018 13:14:00 GMT
"Lendy is not required to monitor the Borrower or its obligations under the loan or security contracts."
So they're going to start posting IMS reports then?
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dovap
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Post by dovap on Mar 6, 2018 13:40:48 GMT
"Lendy is not required to monitor the Borrower or its obligations under the loan or security contracts." So they're going to start posting IMS reports then? Nope lenders are too thick to understand them - you can have some nice pictures though
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mikes1531
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Post by mikes1531 on Mar 6, 2018 15:54:35 GMT
"9.11 Details of the fees which Lendy charges borrowers are set out in the relevant Loan Contract, and these are, typically, an arrangement fee, an exit fee, and a loan monitoring fee."Lendy typically charge borrowers a loan monitoring fee. What does that pay for? Cowes Week??
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ptr120
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Post by ptr120 on Mar 6, 2018 16:30:35 GMT
"9.11 Details of the fees which Lendy charges borrowers are set out in the relevant Loan Contract, and these are, typically, an arrangement fee, an exit fee, and a loan monitoring fee."Lendy typically charge borrowers a loan monitoring fee. What does that pay for? Cowes Week?? Perhaps it pays for their lack of any obligation to monitor? I wonder how they can charge a loan monitoring fee, yet decline any obligation to monitor? Pit in very simple terms, the lack of obligation to monitor surely means that they don't even need to look in their bank account each month to see if a repayment / interest servicing payment has been made?
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tx
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Post by tx on Mar 6, 2018 17:26:46 GMT
I have always been wondering, if we find the new terms unfair and unacceptable, what can we do?
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Post by GSV3MIaC on Mar 6, 2018 18:23:57 GMT
I don't know, but if you figure out how toi decline to accept the changed terms, let me know!
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Post by Proptechfish on Mar 6, 2018 18:30:42 GMT
Assets Capital practice this. It's a very good feature. I'm glad Lendy is going to implement this. It may be more democratic but one clause in there undoes it all...
16.10 The outcome of a vote shall NOT be binding and the final decision to be taken in connection with a Lender Matter shall rest absolutely with Lendy.
Any corporate agreement (not just investments) that invites influence from individuals not under their direct control would reserve the 'ultimate right'. If something went wrong within the regulations, the regulator (in this case the FCA) would enforce 'Lendy' to act not all the individuals invested in the loan. 'Lendy' would not be able to relinquish total control or responsibility from a legal stand point, as per FCA requirements. This is a fairly universal clause in terms and conditions. In hindsight, maybe i shouldn't have used the word 'democratic' as it's a very emotive term and often miss understood
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jwatson
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Post by jwatson on Mar 6, 2018 18:35:34 GMT
I have always been wondering, if we find the new terms unfair and unacceptable, what can we do? I wondered that. Can we simply decline the new terms and get our money refunded ?
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Mousey
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Post by Mousey on Mar 6, 2018 20:02:35 GMT
Well I’ve “notified them in writing” that I don’t agree to the non-monitoring of loans clause so we’ll see what response I get.
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Post by loftankerman on Mar 6, 2018 20:42:28 GMT
Well I’ve “notified them in writing” that I don’t agree to the non-monitoring of loans clause so we’ll see what response I get. I guess as you've thrown down the gauntlet this calls for another instant, ill thought out rule to address the problem. So if there isn't something already to refer to in this context, I think a suitably draconian solution would be to accept your implied resignation from membership, stop paying you any otherwise applicable interest and return your funds, when or if the borrower is ever noticed to have repaid the loan. That should stop an unanticipated stampede for the exit.
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