Jeepers
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Post by Jeepers on Mar 23, 2018 18:51:39 GMT
Initially lendy said they didn't pay interest on loans on the SM because you gained interest in the first 48 hours with INPL and therefore they cancelled each other out.
Now INPL has finished, this needs to change!
The trouble is Lendy wants it both ways, they want to withold interest on loans on the SM AND jump the queue pushing your loan parts back so they can steal your interest for longer.
I think it would be reasonable to say do one or the other, but don't do both!
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tx
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Post by tx on Mar 23, 2018 20:49:56 GMT
I am sure if we write to Lendy they will reply “please refer here” email to T&C. It’s always been one way with Lendy. I am always frustrated with their arrogance and non-negotiable attitude.
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copacetic
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Post by copacetic on Mar 23, 2018 21:10:30 GMT
Lendy keeping interest is effectively a variable fee for listing on the secondary market. Will it be a couple of weeks costing me 0.5% or 3 months costing me 3%? When I list I have no idea.
Adding a fixed selling fee and giving lenders interest while the loan part is listed will not solve the current liquidity problems however. If the market is par only, then the queues will remain long. If Lendy want to solve the liquidity issues and clear up the secondary market they could introduce premiums and discounts. People would likely lose some capital on loans where the amount for sale is high and demand is low but with a big enough discount people who want out would be able to get out.
There are two main issues that might prevent a variable SM coming into effect though:
1. What incentive Lendy has to do this? Currently Lendy are adding perhaps £20-30k per month to their bottom line from interest saved on the £2-3m on the secondary market (not counting the 2 big unfulfilled loans). Could they make this up from a flat fee of say 0.5%? There'd need to be a £4-6m monthly turnover on the SM just to do so.
2. What happens with the mega DFL tranches? If a loan is being sold at 2% discount on the SM then Lendy will need to offer a >2% cashback just to get people to invest in a new tranche. This will bring about the realisation that some of these DFLs won't be getting across the finish line if the borrower sticks with Lendy. I think that is highly probable anyway with some of the recent new loans and we'll see Lendy having to abandon one or more in the not too distant future.
I hope Lendy will think about this issue carefully and try to come up with a solution even if it might not be in their short term interests before the stuff hits the fan. Long term I think the only solution will be a variable secondary market as many real world lessons can be learned from individual parties trying to preventing market forces playing out. For example, the European Exchange Rate Mechanism fixing currency exchanges leading to Black Wednesday in the early 90's and butter price fixing in France leading to butter shortages just a few months ago. The earlier Lendy tackle the issue the less sharp the correction will be when it comes.
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Post by p2plender on Mar 24, 2018 0:08:55 GMT
Why on earth would Lendy pay interest on loans on the SM? In the good days not only would you have been able to milk free interest with INPL, you could put loans straight onto the SM and be paid as you are offloading your risk...
Can't blame Lendy for this rule to be honest!
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Post by loftankerman on Mar 24, 2018 9:10:29 GMT
Why on earth would Lendy pay interest on loans on the SM? In the good days not only would you have been able to milk free interest with INPL, you could put loans straight onto the SM and be paid as you are offloading your risk... Can't blame Lendy for this rule to be honest! I can't argue with the logic of that, and having a rule preventing it would be essential for an equitable approach to T&C. I still think that the broad brush grab is perhaps a bit one sided. I don't think my position lacks objectivity as my remaining loans with Lendy aren't on the SM and I have 25 times as much on a platform with no SM and they are in until the end, whatever that may be.
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Post by portlandbill on Mar 24, 2018 16:44:28 GMT
you could put loans straight onto the SM and be paid as you are offloading your risk... but you are still holding the risk
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Post by charliebrown on Mar 25, 2018 11:10:35 GMT
It all depends what LY do with the money. If they use it to fund jollies to Cowes then I’m against it, if they use it to top up the provision fund and fund recoveries then I’m ok with it.
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tx
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Post by tx on Mar 25, 2018 15:11:50 GMT
I am afraid Lendy is a private company and with no transparency. I think it is a much better sell for how much their provisional fund is and how much bad loan they can cover than the useless Cowes week. Whenever I email them asking about the provisional fund size, they always refer me to T&C, they never tell us how big is the fund and what their coverage ratio is. Cowes week is just another lavish way to spend profit rather than paying tax or improve the platform.
But they did raise a lot awareness of Lendy and how badly they manage their marketing and unwisely use their funds. Even a simple page of ad in FT would be better than anything like the cowes week. Maybe it FT that doesn’t want to be associated with them ...
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tx
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Post by tx on Mar 25, 2018 15:17:42 GMT
But I do hope the DFL004 Sunbeam 14m to be repaid next month! Maybe that’s the reason Lendy putting up so many loans, I am just speculating here.
To be fair, the default and suspended loans are those never got off the ground, the one that did went ahead, seems to progressing well.
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Post by skint4achange on Mar 25, 2018 15:34:52 GMT
I am afraid Lendy is a private company and with no transparency. I think it is a much better sell for how much their provisional fund is and how much bad loan they can cover than the useless Cowes week. Whenever I email them asking about the provisional fund size, they always refer me to T&C, they never tell us how big is the fund and what their coverage ratio is. Cowes week is just another lavish way to spend profit rather than paying tax or improve the platform. But they did raise a lot awareness of Lendy and how badly they manage their marketing and unwisely use their funds. Even a simple page of ad in FT would be better than anything like the cowes week. Maybe it FT that doesn’t want to be associated with them ... Try looking here: lendy.co.uk/how-it-works
That page is available without logging in, without investing and is out there in the open. Look about 2/3 of the way down the page for all the information you have asked Lendy for. No idea why they don't answer you with a simple link to the page?
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Post by skint4achange on Mar 25, 2018 15:46:14 GMT
But I do hope the DFL004 Sunbeam 14m to be repaid next month! Maybe that’s the reason Lendy putting up so many loans, I am just speculating here. To be fair, the default and suspended loans are those never got off the ground, the one that did went ahead, seems to progressing well. I have money in 4 of the big DFL's and TBH, they all seem to be progressing well to me.
DFL's 03, 04, 12 and 22.
The main reason why I invested in DFL's 3 and 22 was due to the fact that the developer had the other DFL on Ly for Block C. That was refinanced to another platform and seemed to go relatively smoothly (Maybe a few days overdue) but certainly with no hassle.
DFL 12 because the figures seemed to add up and the development was already well under way when I came to the platform. With Please turn me over updating with Pics al the time, it makes that investment seem even more solid.
DFL 04, guess I am just a sucker for nostalgia and wanted to see that building brought back to life (A bit like DFL 30!). However, it has worked out well with that DFL too.
IF these large DFL's pay off soon, this post may be irrelevant as liquidity will return, provided people don't hit the withdraw button the moment the money hits the bank! 
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tx
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Post by tx on Mar 26, 2018 2:23:16 GMT
I am afraid Lendy is a private company and with no transparency. I think it is a much better sell for how much their provisional fund is and how much bad loan they can cover than the useless Cowes week. Whenever I email them asking about the provisional fund size, they always refer me to T&C, they never tell us how big is the fund and what their coverage ratio is. Cowes week is just another lavish way to spend profit rather than paying tax or improve the platform. But they did raise a lot awareness of Lendy and how badly they manage their marketing and unwisely use their funds. Even a simple page of ad in FT would be better than anything like the cowes week. Maybe it FT that doesn’t want to be associated with them ... Try looking here: lendy.co.uk/how-it-works
That page is available without logging in, without investing and is out there in the open. Look about 2/3 of the way down the page for all the information you have asked Lendy for. No idea why they don't answer you with a simple link to the page?
Thanks for your reply, looking at the page, the figures almost spell out “lies” to me, almost got angry reading them ... more than half of the provisional funds are not recovered?! In form of future funds?! That is just saying real coverage ratio is only about 1% but we gonna say it is 2.2% anyway ... what’s more, I didn’t find any details on which loan is and is not covered by the provisional fund, that can well make it even lower ... Tell the simple truth Ly, please.
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tx
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Post by tx on Mar 26, 2018 18:11:45 GMT
This is so right. Just how could provisional fund has yet recovered future funds in it! There is no “cover” for that.
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rocky1
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Post by rocky1 on Mar 27, 2018 12:40:22 GMT
going back to the subject of interest with the next payments due in a few days time IOA is due to be paid on all the latest loans that have not filled by a big margin and none of them have been drawn down. LENDY say IOA is held upfront from the borrower but how is this when the borrower will start when the loan is drawn down.will LENDY paying us back 1% of the funds we have put in to these loans thus leaving even more required to fill them.i dont know i just cant work out how LENDY works anymore.
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tx
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Post by tx on Mar 27, 2018 13:04:29 GMT
going back to the subject of interest with the next payments due in a few days time IOA is due to be paid on all the latest loans that have not filled by a big margin and none of them have been drawn down. LENDY say IOA is held upfront from the borrower but how is this when the borrower will start when the loan is drawn down.will LENDY paying us back 1% of the funds we have put in to these loans thus leaving even more required to fill them.i dont know i just cant work out how LENDY works anymore. Very good question!
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