Do you feel that you have been misled?

douganole

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Do you feel that you have been misled? Jul 26, 2018 9:56:01 GMT ozboy and james100 like this

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Post by douganole on Jul 26, 2018 9:56:01 GMT

Following the Lendy Wolverhampton debacle I contacted the FCA, not expecting a specific response to the loan, but, being aware of FCA Principles, to the treatment that lenders were getting. Here are copies of that correspondence which hopefully will lead others (YOU) to take this kind of action with whichever lender treats you like dirt.

It's not going to be an instant, or even an early, solution to sorting out the poor treatment we get from some lenders, but we have to start somewhere to get P2P cleaned up in the long term. If we don't complain, nobody else will.

First of all, FCA Principles;

The applicable rules

1.4

Under the Principles (Note (2)), providers and distributors of products and services have
various responsibilities that have an impact on customers. Detailed rules within the FCA
Handbook further specify what these responsibilities are in certain defined
circumstances.

1.5

The Principles apply to all authorised firms. This Guide looks particularly to the following

Principles (Note (3)):

 Principle 2 ('A firm must conduct its business with due skill, care and diligence');

 Principle 3 ('A firm must take reasonable care to organise and control its affairs

responsibly and effectively, with adequate risk management systems');

 Principle 6 ('A firm must pay due regard to the interests of its customers and treat

them fairly'); and

 Principle 7 ('A firm must pay due regard to the information needs of its clients,

and communicate information to them in a way which is clear, fair and not

misleading').

The correspondence.

From The FCA

Thanks for completing the contact form on our website regarding Lendy Ltd.

I understand Lendy Ltd have provided investors two options for a peer 2 peer loan, were the borrower as defaulted on their loan. You’d like to find out if the firm if needs to comply with our high level principles including Principle Six and Principle Seven for investors under this peer 2 peer agreement.

The activity of operating a Peer 2 Peer platform in the UK is an regulated activity which falls inside our remit. I can see from the register entry for Lendy Ltd, they hold the operating an electronic system in relation to lending permission from us. You can view their register entry by clicking on the highlighted link. This means Lendy Ltd would need to comply with our the rules and regulations as outlined in The Financial Services Handbook, including Principle six and Principle Seven.

However, as the regulator we have to remain impartial and I’m therefore unable to make comment on whether Lendy Ltd have complied with out high level principles including Principle Six and Principle Seven.

Your next steps

If you’re not satisfied with the service provided by Lendy Ltd, you can use the Complaints Procedure including The Financial Ombudsman Service. Further information regarding the Complaints Procedure can be located on our website by clicking on the highlighted link.

As the regulator we’re unable to investigate consumer’s individual complaints or disputes with an authorised firm, as we do not hold complaint resolution powers. These powers are held by The Financial Ombudsman Service.

You may wish to seek you own legal advice regarding your legal position in relation to your investor agreement with Lendy Ltd.

I hope this information has been useful.

Yours sincerely

My Reply

Just one other thing Xxxxxx, I appreciate that you cannot comment specifically but I hope that I have given you sufficient information to flag that there might be issues worth investigating at Lendy. For a feeling of just how angry and misled many lenders feel, you might like to look at some of the comments made on the P2P forum

p2pindependentforum.com/board/58/lendy

I leave it in your hands

Kind regards

The FCA

Thanks for your further emails on 20 July 2018 regarding Lendy Ltd, following my email on 20 July 2018.

I’ve today registered your concerns on our systems and these will be made available to the supervisory team which is responsible for monitoring the conduct of Lendy Ltd. The information you’ve provided me with is helpful in letting us build a picture of whether the firm’s meeting our standards.

Once again thank you for taking the time to send us this information.

Finally

I have had confirmation from the FCA that I may share this correspondence on this forum

Last Edit: Jul 26, 2018 15:54:42 GMT by douganole

aju
Member of DD Central

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Do you feel that you have been misled? Jul 26, 2018 15:19:04 GMT douganole likes this

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Post by aju on Jul 26, 2018 15:19:04 GMT

Very interesting indeed, it might be easier to read perhaps if you could edit out the additional CR lines that "copy and paste" into this platform results in if you have time. That said I understand from reading those principles alone that there could be many of the platforms we all love to hate at times that might not quite be up to scratch.

For me I have been battling recently with issues on the Zopa platform and there are a few more looking with their recent platform changes I think. At the moment Zopa has been very helpful in resolving my issues to my satisfaction (their goodwill pockets seem quite deep in my experience so far and they are trying to improve with little obvious success so far). As a result of some of their recent IT errors on errors after their less than professional attempts to fix the recent Safeguard issues and more fixes to recover subsequents mishaps from the original fixes that have left myself at least in a not that great a position.

I have yet to get to the reporting stage so far. Its interesting that the FCA does not seem interested on an individual level but I guess that's the nature of a conduct agency. The cynic in me also wonders what the ombudsman will do as well given the recent media revelations in the banking sector regulators. Just looking at the timescales of their interventions as well makes one wonder whether regulation is a bit too much smoke and mirrors.

 Principle 2 ('A firm must conduct its business with due skill, care and diligence');

is not Zopa's best place of late in my opinion based on the above personal experience.

 Principle 3 ('A firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems');

not sure that risk management is being addressed for similar reasons. If it had then it wouldn't have taken more than one attempt, or better there wouldn;t have been an issue either. Unless the risk management Zopa did was one of lets not tell anyone what really happened.

 Principle 6 ('A firm must pay due regard to the interests of its customers and treat them fairly'); and

as long as you complain my personal experience is that Zopa CS wants to try and improve thing and definitely is doling out some encouragement that they care when one points out the errors. Zopa do seem to be hiding some things a little though IMHO.

 Principle 7 ('A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading').

Zopa has failed on that one for me and despite its attempts to get things right is still failing with their new platform. Only a couple of days ago they sent me and Mrs Aju emails describing how to check security settings and that it might be in our interests to check current info. The problems is that the author seemed not to know the platform had changed and the instructions were useless and based on the old platform.

There also seems to be little info on the new platform and its left down to trial and error to know where things are. Trouble is its so slow to get anywhere and its cumbersome dashboard is about as useful as as chocolate teapot, on mine it has info on old attempts at loans going back some number of years (to be fair they were only playing at the time) an what relevance they are having is beyond me..

In that last one i think the people who are writing the emails that are meant to be useful are the developers and not someone completely independant who would probably see that
the information is sometime worse than useless. They do keep shooting themselves in the foot.

Sorry I seem to have hijacked your original thread to blast my annoyances with Zopa but I guess it begs the question that why do we have regulations if no one will be enforcing the and worse its left up to the customers to understand enough to bring it to the right peoples attention, its a shame that they won;t take muich action either.

I wonder what the level of reporting criteria is for someone to sit up and notice.

Last Edit: Jul 26, 2018 16:34:05 GMT by aju

aju Member of DD Central Posts: 3,500 Likes: 924	Do you feel that you have been misled? Jul 26, 2018 16:32:18 GMT ozboy likes this Quote Select Post Deselect Post Link to Post Back to Top Post by aju on Jul 26, 2018 16:32:18 GMT That reads much better now thanks douganole for doing that, I think it's important to share this kind of response from our regulators and hopefully it raises awareness too.
	Last Edit: Jul 26, 2018 16:33:08 GMT by aju

Deleted

Posts: 0

Do you feel that you have been misled? Jul 27, 2018 20:31:47 GMT

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Post by Deleted on Jul 27, 2018 20:31:47 GMT

It seems to me that this thread is also highly relevant now

p2pindependentforum.com/thread/13046/change-coming-fca-rules-review

If you have specific concerns that can be linked to the exact list of impressively detailed concerns listed by the FCA, then you will be talking a language they understand...

Do you feel that you have been misled?

Post by douganole on Jul 26, 2018 9:56:01 GMT

Post by aju on Jul 26, 2018 15:19:04 GMT

Post by aju on Jul 26, 2018 16:32:18 GMT

Post by Deleted on Jul 27, 2018 20:31:47 GMT