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Post by dualinvestor on Mar 11, 2018 12:58:06 GMT
Some people have made a small fortune on Lendy, in the conventional sense of having a lot moremoney than when they started. I will call these people 1st adopters. They could hardly fail because of the business model of witholding interest and the highly liquid SM.
Later investors (from say mid 2016) have made their small fortune by starting with a large one as bad debts surfaced and the SM dried up.
During this time Lendy has been trying to get its full authorisation by various staff appointments and changes in T&Cs to satisfy the FCA, the recent 4 and a half months delay in publishing acounts could have hardly helped.
Although the new T&Cs may favour Lendy I think they are just a further step in the authorisation process.
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sl75
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Post by sl75 on Mar 12, 2018 10:12:56 GMT
Although the new T&Cs may favour Lendy I think they are just a further step in the authorisation process. I assume that, as part of the authorisation process, Lendy needs to get the historic "old T&C" loans off their own balance sheet. It appears they're trying to do that by imposing unfavourable terms on lenders (as I read clause 4.4 of the old T&Cs, Lendy provides a guarantee whenever any loan becomes unenforceable). It strikes me that a fairer way to do that would be to honour the guarantee "early", paying all "old T&C" loans in full from company funds, and then transferring the loans to the provision fund. If the profitibility since the end of 2016 has been anything like as good as it was before that point, there'd be plenty of funds to perform such a transfer... Sure, that would be fairly expensive in the short term, but the old T&C loans now represent a small minority of the overall portfolio, and the cost to Lendy would seem small by comparison to the longer-term effect of the continued loss of confidence from investors who keep seeing rules changing under their feet and Lendy making large profits at their expense. Lendy could then draw a line under the old T&Cs and move forward with "new T&Cs" only. Lendy Support only need to look at the massive bills for mis-selling of various products that banks are now having to pay in order to realise how expensive it can become for an organisation that focusses excessively on short-term profit at the expense of its customers.
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Post by loftankerman on Mar 12, 2018 11:22:23 GMT
I would be interested to know how many people are refusing the new T&C and what Lendy's written response it. I can see no reason why the two T&C (one per person to be clear) cannot run side by side within Lendy's portfolio. Could anyone with a response drop me a copy?? I haven't had a reply, largely due to the fact that I haven't written yet. I do intend to though. In thinking about having two sets of T&C running side by side it seemed that it would not be possible for Lendy to be both monitoring and reporting status on loans for one set of lenders and not monitoring or reporting them for another. Apart from the fact that anything revealed would be on this site within minutes, it would destroy any argument that Lendy might want to make that it was blameless because it had not been aware of, or obliged to be aware of untoward circumstances arising. It suggests that the revised T&C might have arisen due to the influx of new management. They may, after looking at things, suggested that there was no way to unravel some of the messes Lendy had got themselves into. Perhaps they proposed instead that writing retrospective T&C legitimising everything done so far would provide a notionally clean slate on which to start doing things more appropriately. At times we all have to deal with our Kobayashi Maru moments as best we can.
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Esmeralda
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Post by Esmeralda on Mar 13, 2018 15:10:25 GMT
On 6th March, I queried the impact the new T&Cs would have on loans with old T&Cs (in particular DFL0001) and this is the reply that I received today, after a wait of 7 days:
"Thank you for getting in touch. The terms and conditions which were active at the time a loan went live will apply to all parts in that loan, will throughout the duration of the loan, and will continue to apply in main upon revisions to Lendy's Platform terms and conditions".
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Monetus
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Post by Monetus on Mar 13, 2018 15:16:58 GMT
On 6th March, I queried the impact the new T&Cs would have on loans with old T&Cs (in particular DFL0001) and this is the reply that I received today, after a wait of 7 days: "Thank you for getting in touch. The terms and conditions which were active at the time a loan went live will apply to all parts in that loan, will throughout the duration of the loan, and will continue to apply in main upon revisions to Lendy's Platform terms and conditions".
So how about freeing up all my funds held in "suspended loans"?  I'm pretty sure the ability to suspend loans wasn't in the terms and conditions that I originally lent on and agreed too when I invested...
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Esmeralda
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Post by Esmeralda on Mar 13, 2018 15:27:45 GMT
I have replied to Lendy telling them that I don't accept the new T&Cs and I will let you know what reply or acknowledgement I receive, if any.
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dandy
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Post by dandy on Mar 13, 2018 15:31:59 GMT
On 6th March, I queried the impact the new T&Cs would have on loans with old T&Cs (in particular DFL0001) and this is the reply that I received today, after a wait of 7 days: "Thank you for getting in touch. The terms and conditions which were active at the time a loan went live will apply to all parts in that loan, will throughout the duration of the loan, and will continue to apply in main upon revisions to Lendy's Platform terms and conditions".
This doesn't even make sense I have read it about 20 times now ... so they apply as at the beginning? or subject to recent revisions? or something else?
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Post by dualinvestor on Mar 13, 2018 15:50:23 GMT
On 6th March, I queried the impact the new T&Cs would have on loans with old T&Cs (in particular DFL0001) and this is the reply that I received today, after a wait of 7 days: "Thank you for getting in touch. The terms and conditions which were active at the time a loan went live will apply to all parts in that loan, will throughout the duration of the loan, and will continue to apply in main upon revisions to Lendy's Platform terms and conditions".
This doesn't even make sense I have read it about 20 times now ... so they apply as at the beginning? or subject to recent revisions? or something else? As a principle of English law you cannot retroactively change the terms of a contract, so in general the terms t the time a loan was taken apply to the whole loan. Those of you that have refused to accept the new T&Cs will probably not be allowed to subscribe for new loans or participate in the SM but your existing loaans will not be affected.
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Esmeralda
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Post by Esmeralda on Mar 14, 2018 11:02:53 GMT
I agree that their reply to me doesn't make sense, but that's what they said. I've heard back from them again, after telling them that I don't accept the new T&Cs for many reasons including, but not limited to, "loans shall not be monitored" and "voting is not binding", as well as telling them that my continuing to log in to view my account and withdraw funds as and when they may become available to me does not constitute my acceptance of the new T&Cs as there is no other way of accessing my account. and this is what they said:
"Thank you for getting in touch.
While Lendy is not required to monitor the borrower or its obligations under the loan or security contracts, our portfolio management team undertake regular monitoring to keep track of a borrower's progress.
By continuing to use our platform, or our services in allocating funds you have deposited, you agree to be bound by the terms of any updates and amendments implemented in accordance with this clause.
If for any reason you don't agree to our new terms and would rather close your account than opt out of specific new features, you can do so by selling your loan parts. If you are unable to sell loan parts due to them either being suspended from secondary market trading or in default, then you will have to wait until these funds become available to withdraw on account".
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elsee
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Retired:D
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Post by elsee on Mar 14, 2018 11:26:40 GMT
I agree that their reply to me doesn't make sense, but that's what they said. I've heard back from them again, after telling them that I don't accept the new T&Cs for many reasons including, but not limited to, "loans shall not be monitored" and "voting is not binding", as well as telling them that my continuing to log in to view my account and withdraw funds as and when they may become available to me does not constitute my acceptance of the new T&Cs as there is no other way of accessing my account. and this is what they said: "Thank you for getting in touch. While Lendy is not required to monitor the borrower or its obligations under the loan or security contracts, our portfolio management team undertake regular monitoring to keep track of a borrower's progress. By continuing to use our platform, or our services in allocating funds you have deposited, you agree to be bound by the terms of any updates and amendments implemented in accordance with this clause. If for any reason you don't agree to our new terms and would rather close your account than opt out of specific new features, you can do so by selling your loan parts. If you are unable to sell loan parts due to them either being suspended from secondary market trading or in default, then you will have to wait until these funds become available to withdraw on account". So, can we opt out of specific new features I wonder? (my bold)
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Post by dualinvestor on Mar 14, 2018 11:47:17 GMT
Probably not it would get far too complicated for them to administer.
I think you have to take the whole lot òr nothing
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Post by loftankerman on Mar 14, 2018 13:41:39 GMT
Hypothetical question: I understand that I can send letters by recorded delivery, but that doesn't give any evidence as to what the contents of the envelope are. So if I were to send a letter rejecting an organisation's new T&C, how would I be able to prove I had done, if at some future time the recipients were to dispute the fact?
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jwatson
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Post by jwatson on Mar 14, 2018 14:41:47 GMT
Hypothetical question: I understand that I can send letters by recorded delivery, but that doesn't give any evidence as to what the contents of the envelope are. So if I were to send a letter rejecting an organisation's new T&C, how would I be able to prove I had done, if at some future time the recipients were to dispute the fact? Why not do it in a ticket (apparently their preferred contact method) and ask them to confirm receipt ?
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Post by loftankerman on Mar 14, 2018 15:02:23 GMT
Hypothetical question: I understand that I can send letters by recorded delivery, but that doesn't give any evidence as to what the contents of the envelope are. So if I were to send a letter rejecting an organisation's new T&C, how would I be able to prove I had done, if at some future time the recipients were to dispute the fact? Why not do it in a ticket (apparently their preferred contact method) and ask them to confirm receipt ? I got the impression from what they wrote, it was supposed to be something written, signed and dated, sent to their registered business address. I also wasn't too sure if they could cancel my account and stop me monitoring my two remain loans if I did.
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Post by dualinvestor on Mar 14, 2018 18:00:26 GMT
Hypothetical question: I understand that I can send letters by recorded delivery, but that doesn't give any evidence as to what the contents of the envelope are. So if I were to send a letter rejecting an organisation's new T&C, how would I be able to prove I had done, if at some future time the recipients were to dispute the fact? The only failsafe method is go to a Notary Public or Commissioner of oaths, swear the document before them and get them to send it registered post and get the post office receipt from them. But it does seem an awful faff (and expense). I have never encountered anyone who has denied receipt of the contents of a registered letter. You should perhaps ask yourself if you have a sufficient level of trust dealing with an organisation that does. In this particular case you will know that have received it because Lendy will alter the way they deal with you possibly closing your account to new business.
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