hazellend
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Post by hazellend on Oct 4, 2018 14:09:18 GMT
Why do you think Lendy are making a loss? They have multiple income streams including free money from investors leaving their money sitting on the SM. While we can only speculate on their current profitability, it a fact that staff costs have increased (as they keep trumpeting their new hires in the recoveries dept) and legal costs must be substantially higher due the huge increase in defaults. At the same time a very large decline in the IOA live loan book has reduced their revenue. Costs UP and revenues DOWN is not a great place to be for any business. Legal costs are presumably paid back to Lendy before recoveries are distributed to lenders.
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mary
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Post by mary on Oct 4, 2018 14:36:45 GMT
While we can only speculate on their current profitability, it a fact that staff costs have increased (as they keep trumpeting their new hires in the recoveries dept) and legal costs must be substantially higher due the huge increase in defaults. At the same time a very large decline in the IOA live loan book has reduced their revenue. Costs UP and revenues DOWN is not a great place to be for any business. Legal costs are presumably paid back to Lendy before recoveries are distributed to lenders. there are ever any recoveries from the shortfall from defaulted asset sales then I’m sure everyone will be happy for Lendy to be reimbursed.
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wuzimu
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Post by wuzimu on Oct 4, 2018 15:01:31 GMT
Actually I suspect its lack of +ive cash flow which explains why progress of many defaults is so slow... It may be that LY can't afford to front legal costs for so many contemporaneous recoveries and that is why many sit on the back burner.
I have suggested to FCA, P2P platforms of the LY business model should be required to hold a significant cash reserve in proportion to the loan book to meet unknown default recovery costs.
LY made the roockie error of splashing out on Cowes sponsorship, flash offices and
the Teslas before they secured a sustainable business model.
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Post by loftankerman on Oct 4, 2018 15:53:29 GMT
Actually I suspect its lack of +ive cash flow which explains why progress of many defaults is so slow... It may be that LY can't afford to front legal costs for so many contemporaneous recoveries and that is why many sit on the back burner.
I have suggested to FCA, P2P platforms of the LY business model should be required to hold a significant cash reserve in proportion to the loan book to meet unknown default recovery costs.
LY made the roockie error of splashing out on Cowes sponsorship, flash offices and
the Teslas before they secured a sustainable business model. Sponsorship of 'Frasier' was a last desperate gamble of Equitable Life and I'm more inclined to believe that of Lendy and Cowes, than regard is as too much too soon.
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rocky1
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Post by rocky1 on Oct 4, 2018 15:55:02 GMT
would lenders agree with lendy using the PF to pursue all the historic loans that as you say are just lying on the back burner.when it runs out that is the end of it.the PF seems to be a interest earning sideline and part of lendys marketing and will only be used at lendys discression.so might as well put the thing to use inthe interest of the lenders who they have badly let down.
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Post by cashmax on Oct 4, 2018 15:56:54 GMT
I think it would be fair bet to suggest that the next set of accounts filed will show that Lendy is now making a loss. I also don't think it's likely that most of the employees at Lendy are aware of this. Why do you think Lendy are making a loss? They have multiple income streams including free money from investors leaving their money sitting on the SM. It's purely speculation on my part. Their last accounts showed a huge drop in profits, down to well under 7 figures if I recall. That was when new money was pouring in, before all the new hires (the salary bill looked very small) and before they ramped up the marketing / PR spend. Coupled with the wealth product clearly not getting the traction they had hoped for it would be hard to imagine their situation had improved.
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Post by cashmax on Oct 4, 2018 16:00:04 GMT
would lenders agree with lendy using the PF to pursue all the historic loans that as you say are just lying on the back burner.when it runs out that is the end of it.the PF seems to be a interest earning sideline and part of lendys marketing and will only be used at lendys discression.so might as well put the thing to use inthe interest of the lenders who they have badly let down. I would agree with it for sure, but very unlikely to happen. I would expect to see Lendy try to move this fund further and further away from the business. Not sure what their obligations are re this fund?
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Post by loftankerman on Oct 4, 2018 17:23:29 GMT
would lenders agree with lendy using the PF to pursue all the historic loans that as you say are just lying on the back burner.when it runs out that is the end of it.the PF seems to be a interest earning sideline and part of lendys marketing and will only be used at lendys discression.so might as well put the thing to use inthe interest of the lenders who they have badly let down. Yes, I would totally agree. I have never regarded the alleged existence of it to be of any real value to me. I suspect that the potential size relative to the growing number of cases where lenders regard themselves to be entitled, make it more of an embarrassment than a benefit. On balance Lendy might as well scrap it and put a few hundred quid on Euro Millions every week with the assurance that any winnings would be put aside as a PF. I doubt any would notice the difference.
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ilmoro
Member of DD Central
'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 Oct 4, 2018 17:44:56 GMT
Actually I suspect its lack of +ive cash flow which explains why progress of many defaults is so slow... It may be that LY can't afford to front legal costs for so many contemporaneous recoveries and that is why many sit on the back burner.
I have suggested to FCA, P2P platforms of the LY business model should be required to hold a significant cash reserve in proportion to the loan book to meet unknown default recovery costs.
LY made the roockie error of splashing out on Cowes sponsorship, flash offices and
the Teslas before they secured a sustainable business model. Up front legal costs in most cases for Lendy will be relatively small. Most of the legal cost is born by the receiver/administrators & then claimed back from recoveries. It is clear from recent comms that have resources & will make them available if required. The offices are owned by Lendy, purchased outright as an investment AIUI.
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wuzimu
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Post by wuzimu on Oct 4, 2018 20:24:25 GMT
Actually I suspect its lack of +ive cash flow which explains why progress of many defaults is so slow... It may be that LY can't afford to front legal costs for so many contemporaneous recoveries and that is why many sit on the back burner. I have suggested to FCA, P2P platforms of the LY business model should be required to hold a significant cash reserve in proportion to the loan book to meet unknown default recovery costs.
LY made the roockie error of splashing out on Cowes sponsorship, flash offices and
the Teslas before they secured a sustainable business model. Up front legal costs in most cases for Lendy will be relatively small. Most of the legal cost is born by the receiver/administrators & then claimed back from recoveries. It is clear from recent comms that have resources & will make them available if required. The offices are owned by Lendy, purchased outright as an investment AIUI. ilmoro , I quote from Lendy's own article 'Recoveries - behind the scenes' published 13 days ago.
'Our internal recovery team works tirelessly to recover loan sums. Lendy also spends a six-figure amount each year on legal fees for external law firms purely related to recoveries which is funded largely by the business itself rather than by investors – reducing Lendy’s profits in order to protect investors’ returns.' (my bold emphasis to illustrate LY's attitude to such expenditure.)
I'm saying what ever six-figure amount they have been spending on law firms is clearly nowhere near enough.
Presumably because LY would rather increase their profit rather than protect lenders capital.
Hence the state of the loan book we have today.
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jomantha
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Post by jomantha on Oct 6, 2018 15:51:57 GMT
Why does one of the reviews suggest Lendy have sold investors details to a borrower?
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jomantha
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Post by jomantha on Oct 6, 2018 15:53:47 GMT
Seems that the Lendy reply that claimed nobody could lose more money than they deposited has been deleted. Also it appears (from the purple site) that the Metro Bank charge against the Provision fund is for a £1m loan. Not exactly the actions of a company that has increased it's cash holdings in the past year. Got a feeling the PF might end up eventually disappearing without use, if they could find a palatable way to do it. Is this saying that we could be expected to lose more than our original capital?
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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 Oct 6, 2018 17:01:02 GMT
Why does one of the reviews suggest Lendy have sold investors details to a borrower? Inaccurate speculation?
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wuzimu
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Post by wuzimu on Oct 6, 2018 17:31:50 GMT
If you don't know what the trustpilot review was referring to, then fortunately the matter does not specifically concern you.
About 5,000 lenders do know what is being referred to and why the trustpilot poster is annoyed with LY.
But I don't think Trustpilot is the right forum for the matter to be reported as for most people it simply raises more Q's than A's, which sadly can't be provided.
I would direct the trustpilot poster to FOS and the FCA.
If my post has pricked your interest further, all I can say is that if you are irritated and annoyed with LY and really just want your money back so you can move on, knowing the back story to the TP post would not surprise you and would leave your low view of LY unchanged.
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ilmoro
Member of DD Central
'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 Oct 6, 2018 19:41:19 GMT
If you don't know what the trustpilot review was referring to, then fortunately the matter does not specifically concern you.
About 5,000 lenders do know what is being referred to and why the trustpilot poster is annoyed with LY.
But I don't think Trustpilot is the right forum for the matter to be reported as for most people it simply raises more Q's than A's, which sadly can't be provided.
I would direct the trustpilot poster to FOS and the FCA.
If my post has pricked your interest further, all I can say is that if you are irritated and annoyed with LY and really just want your money back so you can move on, knowing the back story to the TP post would not surprise you and would leave your low view of LY unchanged.
Well about 3750 but what's 25% either way. With accuracy like that you should be RICS 😁
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