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Post by rooster on Jun 6, 2018 21:07:02 GMT
So, I've been investing in Lendy for a couple of years but have always managed to find sufficient opportunity in the pipeline loan area.
Tonight, I'd like to invest some money and without any pipeline loans available, it would seem that I should punt for an 'Available Loan'. I had a few questions that the FAQs seem to
gloss over and hoped that someone here would have the experience to help me. Here goes....
1) I see there was a change during the spring that prevents secondary market sales (from other investors) from being sold before a less than 100% funded (and now active) pipeline loan. With this in mind, why are there loans seemingly available for me to invest - with one for example with just 16 days to run and needing just £371. Not that I would, but surely I shouldn't be able to buy that one and the others until the >1.6million pound one at the top is filled?
2) The second loan down from the top says that it comes with 2% cashback. On closer inspection of the terms, it says that this applies to investors invested before the loan is drawn. As its status is today 'drawn', does that mean that I wouldn't qualify for the cashback, should I invest (and that further, Lendy should have removed the invalid offer)?
3) IOA sounds like a good thing, that interest is in the bag and ready to pay to future investors, correct?
4) Essentially, in relation to the top two loans, they seem to me to not have lost any lustre (apart from a little loss of interest for the drawn one) from being in the 'Available loans' market than the pipeline loans screen. Is this view a fair assumption please or is there a big red warning that I'm missing (and causing other investors to not invest)?
Thanks in advance pals :-)
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sj
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Post by sj on Jun 6, 2018 21:39:11 GMT
All the available loans on Lendy are pretty dodgy propositions nowadays. There are maybe 2 or 3 worthwhile ones (for now anyway), but they are like the proverbial rocking horse droppings to find on the SM. Best advice is to withdraw your funds and go elsewhere!
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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 Jun 7, 2018 0:29:45 GMT
1) Not exactly sure of your point here. There are no restrictions on what loans you can buy & sell (excluding defaulted & suspended) therefore it is irrelevent if there are large loans need filling, it doesnt stop people selling out of other loans or people buying into them.
2) Consensus is that the 2% CB flag should have been removed but this is Lendy and its not always logical. That said if the loan has been drawndown but was not filled by lenders (ie some was underwritten) it could be anyone purchasing the residual initial sum from the UWs might qualify. I would assume you wont get the CB.
3) Yes, Lendy loans include retained interest ie we lend the borrower the interest as well as principal (the borrower only receives c78% of the loan the rest covers fees & interest) so during the term of the loan interest will be paid without having to rely on the borrower. Once the loan goes IA it means no more interest is retained and it either has to be paid by the borrower or will accrue until the borrower redeems the loan. IOA interest is effectively guarenteed to be paid, IA isnt.
4) Not sure what you mean exactly. In terms of lustre, they havent filled so are not especially popular. The top one is a second charge loan so is more risky than the main loan DFL012 but paying the same rate. A lot of lenders will already be in the earlier loan so dont want further commitment at higher risk/reward. The second one PBL199 is a loan to a borrower who already has multiple loans on Lendy DFL003, DFL006, DFL011, DFL020, DFL022, DFL033 so again lenders may not waht to have further exposure to the same borrower, even if secured on seperate assets. It is also a large loan with CB SM liquidity is likely to be poor as people flip excess holdings taken due to the CB.
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Yintara
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Post by Yintara on Jun 7, 2018 8:38:15 GMT
Point 1: I think what you're referring to is that any parts of a loan that Lendy hold (i.e. parts that weren't bought by investors when the loan went live) jump to the front of the queue for that particular loan. So if you buy part of a loan that Lendy still have a stake in then their part is sold first ahead of other investors. It doesn't mean that the entire SM is frozen until Lendy's parts of a loan are sold.
Point 4: I'm confused by what you mean here as well. The pipeline loans are upcoming loans which haven't gone live yet. You don't earn interest on these, even if you have put in a pre-funding amount. Once they have gone live they move onto the available loans page and start earning interest. Does that help, or can you clarify what you mean here?
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rocky1
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Post by rocky1 on Jun 7, 2018 9:13:36 GMT
is it lendy or underwriters money that is first in the queue on all the loans that havent been filled by us when gone live?
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sl75
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Post by sl75 on Jun 7, 2018 10:08:58 GMT
re point 2:
It's not clear whether Lendy will successfully wriggle out of paying the advertised 2% cashback to people who invest now, and if Lendy don't pay it as a gesture of goodwill when they finally acknowledge their error in continuing to advertise cashback to new investors even after paying it to the "original" investors, it may ultimately be up to affected investors to complain to the Advertising Standards Authority, Financial Conduct Authority, or Financial Services Ombudsman...
... so don't rely on ever receiving any cashback from new investment in loans that have already paid it to other investors - receiving it may rely on successfully arguing that there was no reasonable way you could have known which of the loans showing "CASH BACK" had already paid it and which had not, and that it was perfectly reasonable at the time you invested to assume the cashback had not yet been paid.
As I have already received cash back from all of the incorrectly labelled loans, that is not an argument I could even start to make myself. However, some newer investors in those loans will almost certainly be making that argument; some of them being 100% genuine, and thus (in my opinion) the best positioned to take the matter further.
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Post by rooster on Jun 7, 2018 22:00:13 GMT
1) Not exactly sure of your point here. There are no restrictions on what loans you can buy & sell (excluding defaulted & suspended) therefore it is irrelevent if there are large loans need filling, it doesnt stop people selling out of other loans or people buying into them.
2) Consensus is that the 2% CB flag should have been removed but this is Lendy and its not always logical. That said if the loan has been drawndown but was not filled by lenders (ie some was underwritten) it could be anyone purchasing the residual initial sum from the UWs might qualify. I would assume you wont get the CB.
3) Yes, Lendy loans include retained interest ie we lend the borrower the interest as well as principal (the borrower only receives c78% of the loan the rest covers fees & interest) so during the term of the loan interest will be paid without having to rely on the borrower. Once the loan goes IA it means no more interest is retained and it either has to be paid by the borrower or will accrue until the borrower redeems the loan. IOA interest is effectively guarenteed to be paid, IA isnt.
4) Not sure what you mean exactly. In terms of lustre, they havent filled so are not especially popular. The top one is a second charge loan so is more risky than the main loan DFL012 but paying the same rate. A lot of lenders will already be in the earlier loan so dont want further commitment at higher risk/reward. The second one PBL199 is a loan to a borrower who already has multiple loans on Lendy DFL003, DFL006, DFL011, DFL020, DFL022, DFL033 so again lenders may not waht to have further exposure to the same borrower, even if secured on seperate assets. It is also a large loan with CB SM liquidity is likely to be poor as people flip excess holdings taken due to the CB.
Thank you for your answers. They were all helpful.
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Post by rooster on Jun 7, 2018 22:05:18 GMT
Point 1: I think what you're referring to is that any parts of a loan that Lendy hold (i.e. parts that weren't bought by investors when the loan went live) jump to the front of the queue for that particular loan. So if you buy part of a loan that Lendy still have a stake in then their part is sold first ahead of other investors. It doesn't mean that the entire SM is frozen until Lendy's parts of a loan are sold.
Point 4: I'm confused by what you mean here as well. The pipeline loans are upcoming loans which haven't gone live yet. You don't earn interest on these, even if you have put in a pre-funding amount. Once they have gone live they move onto the available loans page and start earning interest. Does that help, or can you clarify what you mean here?
Thanks for your advice on point 1. That clarifies it fully to me. In relation to point 4, I realise they aren't earning when theyre in the pipeline. I suppose what I was getting at could be explained by the following example: A loan looks like utopia in the pipeline on Monday, low LTV + high interest etc..... This loan isn't fully funded at go-live so ends up as an available loan by the Wednesday. Would it be any less desirable for being in the available loan screen. No need to answer, Ive gathered from other feedback that it wouldn't. Going from launch to available loans doesn't inherently make the loan any less attractive. Thanks again.
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Post by rooster on Jun 7, 2018 22:09:55 GMT
re point 2: It's not clear whether Lendy will successfully wriggle out of paying the advertised 2% cashback to people who invest now, and if Lendy don't pay it as a gesture of goodwill when they finally acknowledge their error in continuing to advertise cashback to new investors even after paying it to the "original" investors, it may ultimately be up to affected investors to complain to the Advertising Standards Authority, Financial Conduct Authority, or Financial Services Ombudsman... ... so don't rely on ever receiving any cashback from new investment in loans that have already paid it to other investors - receiving it may rely on successfully arguing that there was no reasonable way you could have known which of the loans showing "CASH BACK" had already paid it and which had not, and that it was perfectly reasonable at the time you invested to assume the cashback had not yet been paid. As I have already received cash back from all of the incorrectly labelled loans, that is not an argument I could even start to make myself. However, some newer investors in those loans will almost certainly be making that argument; some of them being 100% genuine, and thus (in my opinion) the best positioned to take the matter further. Yes that sounds very misleading, I wont bank on the interest. Without wishing to pollute this thread, I will indulge myself just a couple of lines: The ASA, they cant be trusted either. I raised a complaint with them after receiving a written confirmation from a company that their product didn't include a feature claimed on their website. Despite their admittance of this, which I forwarded, the ASA didn't uphold my complaint! hahaha <puke>
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sl75
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Post by sl75 on Jun 8, 2018 7:31:26 GMT
I can certainly confirm that Lendy promised a full BONUS (an incentive to take up the larger/late loans) and DID NOT PAY for PBL120. That is incomplete and misleading information - they paid interest and bonus on 24/05/2018... the outstanding issues are with various errors they made in distributing the amounts associated with the partial repayments the day after that. As mentioned on the thread discussing that loan, I was paid too much in total, so I'm staying out of any further complaint discussions. (I also note that you were initially satisfied with the outcome, saying "Finally a case closed at Lendy" in the post immediately following mine on page 26!)
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locutus
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Post by locutus on Jun 8, 2018 8:46:28 GMT
sl75 bonuses have certainly not been paid in full for PBL120. They are still owed for the repayment parts on R1, R2, R3 and R4. The only bonus paid was for the final repayment.
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sl75
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Post by sl75 on Jun 8, 2018 9:06:02 GMT
sl75 bonuses have certainly not been paid in full for PBL120. They are still owed for the repayment parts on R1, R2, R3 and R4. The only bonus paid was for the final repayment. As I said above: "the outstanding issues are with various errors they made in distributing the amounts associated with the partial repayments the day after that". The bonus was paid in full for PBL120, no bonus would be due on PBL120R1 as a full month had not elapsed. PBL120R2 to PBL120R4 are the loans where you and others are chasing things. However, I'm leaving well alone.
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locutus
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Post by locutus on Jun 8, 2018 9:10:05 GMT
<snip> no bonus would be due on PBL120R1 as a full month had not elapsed. </snip> Is this a new policy as I haven't heard of it. Where is it documented?
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sl75
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Post by sl75 on Jun 8, 2018 9:23:35 GMT
<snip> no bonus would be due on PBL120R1 as a full month had not elapsed. </snip> Is this a new policy as I haven't heard of it. Where is it documented? To avoid taking this yet further off topic, I'll reply on the PBL120 thread.
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