Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Oct 30, 2018 0:49:17 GMT
Sell distressed loans for the bottom estimate of Auction price if there is no chance of a bigger payout repossessing That seems to be the unusual outcome these days. With over £150k in Ly I would not be a happy bunny.  They could reduce the the interest rate paid on IOA loans by 50% and allow SM sales at a discount for those that want out. Take the money saved plus they reduce their take by 80% and that money used to at least give 100% capital return to those with the misssold/ screwed up loans until they get quality of loans sorted. |
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GeorgeT
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Post by GeorgeT on Oct 30, 2018 1:51:18 GMT
As somebody who is stuck in two loans which are ridiculously overdue and on which there never seems to be any progress, and noting the same situation applies to many other loans that have also seemingly reached an impasse, I welcome the news because at least it means something is happening behind the scenes. The last umpteen updates on my loans seem to be going round in circles and little more than stalling tactics but now we know that LY is exploring ways of resolving the many problem loans. This at least tells us that they understand the severity of the problems and they understand that things cannot be left much longer without something changing and happening. Of course nobody will be pleased to be offered a capital loss but I am reaching the point where I will be pleased to at least be offered an exit and something.
Other recent events in terms of staff departures have indicated as well that this is now a critical and future defining time for the platform.
I understand that other investors who may not have made as much interest as me and who have more currently invested will take a different view.
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Post by cashmax on Oct 30, 2018 1:53:28 GMT
Lendy Support I hope you appreciate that this report in the FT today hard on the heels of the recent resignations by a number of senior employees has the potential to seriously destabilize the platform, and further reduce the inflow of new funds.
I have invested additional net funds into Lendy during 2018, including earlier this month, however I think it unlikely I will be providing any new funds until such time as Lendy's future plan for the business is coherent.
I'm shocked that you invested good money after bad as late as this month into a company where the writing was so clearly on the wall. For the avoidance of doubt and for the benefit of anyone else who can't yet smell the stench of very strong coffee - It's over, caput, finished.
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Post by cashmax on Oct 30, 2018 2:02:26 GMT
Just to add, the major worry I would have is that the normal M.O. for administrators in this situation would be to step in, sell the loanbook for 10-20p in the £1 and them submit their invoice for that value, leaving every investor with 100% loss and zero comeback. Ironically, this will come down to the borrower/lender loan agreement in proving that this course of action was not reasonable, because the investors are contracted directly with the borrowers. So losing the London case could materially benefit investors in this scenario.
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rocky1
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Post by rocky1 on Oct 30, 2018 5:20:50 GMT
Both the FCA and FOS should be involved now and work with lendy to sort this mess out.going round in circles is not the answer.what is the point of these organisations if they just sit back and watch thousands of lenders lose tens of millions of pounds.the outcome of this will affect the whole p2p industry and finish a lot more platforms.lenders will not risk their funds.
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Garage246
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Post by Garage246 on Oct 30, 2018 6:58:22 GMT
Its exactly because Lendy has not routinely and robustly enforced the security through open market disposal then pursued borrowers and any professional negligence claims, that the loan book is in such a pickle. I want to see this done for every overdue loan.
That is how lenders get transparency and how we know Lendy have discharged their fiduciary duty as trustees.
The loan book needs wrapping up in the most beneficial way to lenders, that is Lendy's legal and regulatory obligation. I don't trust Lendy to have that in mind though.
Lenders need a voice and representation in what is to come.
Ideally if there was a Lendy Victims Group that had a simple united message, FCA might be prepared to hear it and hold the platform to account as things are wound up.
I've seen it before.
There will be a much better outcome for lenders if our voice is heard in regulatory circles before the fat lady sings.
After a stitch up has been done, FCA will not be interested.
Sounds a good idea Here here - but the devil is in the detail. How do you get several thousand investors speaking in a coordinated way through one representative person or organisation. That's a huge weakness and why an effective FCA organisation should be proactive before the event not after. Who's going to stand up and set something up.... Our family accounts have several hundred thousand invested, but essentially no voice in any of this like everyone else. On the plus side I welcome the earlier post from Lendy Support, but for goodness sake 1. Put something on the website, 2. Start communicating properly (no regular updates at all in October), 3. Treat your customers with a bit more respect and not as if you hate them andblose the arrogance. The situation can still be rescued but it needs a wholesale change in how Lendy communicates and acts. They wonder why TP ratings and comment on here is so negative - but what do you expect in an information vacuum. Investors will, quite rightly, fear the worst and the press will sieze on any opportunity to report. If the Lendy owners strategy is to wind up the business and move onto the next thing, then it would be naive to think that there would be no fallout and reputational damage that would follow. Obviously I hope this is not the case as I do think Lendy could still pull things back, and there are good prospects of full capital recovery on a number of the loans. It was a good company in the beginning. My views FWIW.
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hazellend
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Post by hazellend on Oct 30, 2018 7:23:14 GMT
Just to add, the major worry I would have is that the normal M.O. for administrators in this situation would be to step in, sell the loanbook for 10-20p in the £1 and them submit their invoice for that value, leaving every investor with 100% loss and zero comeback. Ironically, this will come down to the borrower/lender loan agreement in proving that this course of action was not reasonable, because the investors are contracted directly with the borrowers. So losing the London case could materially benefit investors in this scenario. Lol yet another thread descends into amateur opinion crazy town.
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reinvestor
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Post by reinvestor on Oct 30, 2018 8:29:29 GMT
Surely this is yet another pie in the face of the FCA who fully authorised this bunch of clowns in July of this year!!!
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jeremy12
Member of DD Central
Everything's frozen
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Post by jeremy12 on Oct 30, 2018 8:51:00 GMT
Surely this is yet another pie in the face of the FCA who fully authorised this bunch of clowns in July of this year!!! Yes I would imagine that these problems were apparent when the FCA was assessing Lendy's suitability for authorisation.
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Post by patright on Oct 30, 2018 8:52:23 GMT
This is only my opinion and I am not as well educated in the UK property market as many people here that live in the UK
What I do see is that real estate is going on a down slope in many major market and it all starts with the one that went up the most (New York, Melbourne, San Francisco)
Just read also that in France, the one and only market still growing is Paris, Bordeaux was very very hot in recent years and going down now in price (moderately though)
Yet, with the market in hot water etc, it's only a matter of time until it spread heavily on the property market
Therefore, my opinion is to sell those overdue property asap to recover the maximum money because valuation were already inflated in good times, imagine what it will be worth in a recession
I prefer to take a cut now that an even bigger cut in 2 years (having wasted two more years by the way with money sitting there)
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Post by Deleted on Oct 30, 2018 8:52:33 GMT
Really pleased that Lendy came back and gave clarity, that they cannot go into any details is because they are still in negotiations. If they can offer some solutions to some very over-ripe loans well done to them, let's wait and see.
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jeremy12
Member of DD Central
Everything's frozen
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Post by jeremy12 on Oct 30, 2018 9:00:03 GMT
Really pleased that Lendy came back and gave clarity, that they cannot go into any details is because they are still in negotiations. If they can offer some solutions to some very over-ripe loans well done to them, let's wait and see. I'm wondering what criteria may be used to decided which loans to sell on as the majority are in poor condition. This would end up with Lendy having very few loans and no new business in sight.
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Post by queenvictoria on Oct 30, 2018 9:09:21 GMT
I've read the FT article and whilst the sub-headline says 'Lendy in talks over deal that would involve selling loanbook at discount to face value' the article itself provides no further detail at all. In fact what it seems to suggest is that the discussions that are in place is on re-financing some loans which is surely just normal business. What may be new is that Lendy might consider letting some loans go at a discount but the article goes no further than that.
Let's not get carried away guys. We may be disappointed that many of our loans are 'stuck' but we have to give Lendy time to play out the end game on each loan.
To Lendy I would say please do what you can to keep your lenders with you - you have a long way to go to being the best in the business on this score.
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Post by patright on Oct 30, 2018 9:27:11 GMT
I've read the FT article and whilst the sub-headline says 'Lendy in talks over deal that would involve selling loanbook at discount to face value' the article itself provides no further detail at all. In fact what it seems to suggest is that the discussions that are in place is on re-financing some loans which is surely just normal business. What may be new is that Lendy might consider letting some loans go at a discount but the article goes no further than that. Let's not get carried away guys. We may be disappointed that many of our loans are 'stuck' but we have to give Lendy time to play out the end game on each loan. To Lendy I would say please do what you can to keep your lenders with you - you have a long way to go to being the best in the business on this score. , I for one is gone FOREVER as soon as whatever money is recovered
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invester
P2P Blogger
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Post by invester on Oct 30, 2018 9:27:34 GMT
I suspect it might be too late for that. Lendy aren't going to acquire customers by competently administering bad loans. That is the very least we should expect, and there are few indications that they are doing this job well.
They can get more customers by producing some decent investment opportunities for people to partake in. That is how their reputation will be rebuilt, but it seems that the origination side of the business is dead. If there was something in the pipeline wouldn't they have told us by now?
Interestingly, the staff profiles have disappeared from the site but if you are quick the staff list still appears on the borrowing prospectus complete with photos. I do wonder how many of them will be left by the end of the year.
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