moist
Member of DD Central
Posts: 241 
Likes: 251
|
Post by moist on Nov 23, 2018 12:40:55 GMT
recently registered, I smell a rat.....
|
|
|
|
Post by mrclondon on Nov 23, 2018 12:41:53 GMT
The problem is Lendy's available funds to pursue recoveries, and that is dragging out to dangerous timescales. 700+ days in default is ludicrous and clearly just to avoid writing the debt off. 700 days isn't yet 2 years, and hence can not possibly be ludicrous. These are complex highly geared development projects, and a resolution for most could take 5 or more years. Why should Lendy be expected to resolve loans in less than 2 years when the likes of AC, TC , FS, FC etc don't. (at AC I have loans that defaulted in 2014 not yet resolved, at FC a loan that defaulted in 2012 is going to take another few years to resolve, hopefully before the 10 year mark is hit)
Unfortunately p2p platforms have not spelt out adequately to retail lenders what the implications are for investing in bridging / development debt, leading to totally unreasonable expectations. Some loans will repay more or less on schedule, some will repay within a year of being overdue, but the rest will take years to resolve.
As others have said its the clamour by retail lenders to bring Lendy down that is the real frightening aspect here. I have inreased my balance at Lendy by 30% this year (a 5 figure sum, I'm not a retail investor) but have stopped for now because of posts like yours and the mis-guided attacks in the media.
|
|
nsinvestor
Member of DD Central
Posts: 105
Likes: 110
|
Post by nsinvestor on Nov 23, 2018 12:59:00 GMT
Anyone who has ever engaged with the English court system (whether civil or criminal) will know that things move at a glacial pace. Unfortunately, it is all too easy at every stage for either side in a dispute to introduce another delaying tactic.
As a very simple example, look how long it took to finally evict the unscrupulous farmers from the tin shed in Somerset - he used every trick in the book to keep the wheels spinning for about a year....
Lendy got there in the end and have now marketed the property. I know lenders are looking at a considerable headline loss when the security is sold and the probability of recovering the shortfall via personal guarantees and the like is incredibly small but that's not my point here.
To re-iterate, the courts move incredibly slowly and enforcement action / recovery can only be done by following due process.
If Lendy itself went into administration, any 3rd party subsequently responsible for collection would have to work through the exact same process.
|
|
nsinvestor
Member of DD Central
Posts: 105
Likes: 110
|
Post by nsinvestor on Nov 23, 2018 13:03:46 GMT
Probably in the wrong thread, but a second point with regard 'never declaring a default'
If we believe that Lendy are continuing to explore all legal options trying to recover shortfalls, then one simple communications change from Lendy would potentially help everyone better understand their position and chances of success. That is, a simple update on the relevant loans detailing the other assets of the borrowers that are being pursued under the personal guarantees. That would at least allow each lender to reach their own conclusions on remaining haircut.
|
|
|
|
Post by picanto on Nov 23, 2018 13:40:28 GMT
Whilst the thought of Matt Allwright and the rest of the Rogue Traders gang at Watchdog chasing Liam through gardens and over hedges is somewhat amusing, I don't believe it would be particularly helpful. I must admit, I did get a chuckle out of that. 
|
|
|
|
Post by charlata on Nov 23, 2018 13:49:48 GMT
P2P feels increasingly like trying to run a three-legged race with a partner who has a loaded gun and a dislike of his foot.
Because investors can't escape bad p2p investments, some end up trying to find closure by avenging themselves on the marketplace where they bought the loan. If we could trade all loans at unrestricted discounts, those investors who want out could leave. Yet full secondary markets are proscribed, by the FCA I believe, and those who have influence with them. Out of a desire to prevent two consenting adults from exchanging investments at a mutually acceptable price, whole platforms and all the investments on them are being put in unnecessary jeopardy.
|
|
dovap
Member of DD Central
Posts: 467
Likes: 410
|
Post by dovap on Nov 23, 2018 14:06:21 GMT
The problem is Lendy's available funds to pursue recoveries, and that is dragging out to dangerous timescales. 700+ days in default is ludicrous and clearly just to avoid writing the debt off. 700 days isn't yet 2 years, and hence can not possibly be ludicrous. These are complex highly geared development projects, and a resolution for most could take 5 or more years. Why should Lendy be expected to resolve loans in less than 2 years when the likes of AC, TC , FS, FC etc don't. (at AC I have loans that defaulted in 2014 not yet resolved, at FC a loan that defaulted in 2012 is going to take another few years to resolve, hopefully before the 10 year mark is hit)
Unfortunately p2p platforms have not spelt out adequately to retail lenders what the implications are for investing in bridging / development debt, leading to totally unreasonable expectations. Some loans will repay more or less on schedule, some will repay within a year of being overdue, but the rest will take years to resolve.
As others have said its the clamour by retail lenders to bring Lendy down that is the real frightening aspect here. I have inreased my balance at Lendy by 30% this year (a 5 figure sum, I'm not a retail investor) but have stopped for now because of posts like yours and the mis-guided attacks in the media.
not entirely sure what constitutes a 'retail' investor versus non-retail unless it means you chuck more money at the platform but got to say I'm surprised firstly that there's been anything on the platform of quality to warrant a 30% increase in balance and that further investment is linked to posts by eejits on a forum. The underlying prospects of the platform thriving or otherwise I think is more dependent on their actions and the quality of loans than random moaning on t'internet still each to their own.
|
|
tommytaylor
P2P - The new wild west
Posts: 234
Likes: 375
|
Post by tommytaylor on Nov 23, 2018 14:06:33 GMT
The problem is Lendy's available funds to pursue recoveries, and that is dragging out to dangerous timescales. 700+ days in default is ludicrous and clearly just to avoid writing the debt off. 700 days isn't yet 2 years, and hence can not possibly be ludicrous. These are complex highly geared development projects, and a resolution for most could take 5 or more years. Why should Lendy be expected to resolve loans in less than 2 years when the likes of AC, TC , FS, FC etc don't. (at AC I have loans that defaulted in 2014 not yet resolved, at FC a loan that defaulted in 2012 is going to take another few years to resolve, hopefully before the 10 year mark is hit)
Unfortunately p2p platforms have not spelt out adequately to retail lenders what the implications are for investing in bridging / development debt, leading to totally unreasonable expectations. Some loans will repay more or less on schedule, some will repay within a year of being overdue, but the rest will take years to resolve.
As others have said its the clamour by retail lenders to bring Lendy down that is the real frightening aspect here. I have inreased my balance at Lendy by 30% this year (a 5 figure sum, I'm not a retail investor) but have stopped for now because of posts like yours and the mis-guided attacks in the media.
I think this is the key sentence here. All as you are told is that your capital is at risk. No mention of the fact that in the very likely scenario of your loan defaulting then you could have to wait up to 10 years before seeing a bean of it back. Hell some p2p punters would have even died during this time. I think if everybody knew the real truth then they would not touch p2p with a barge pole.
|
|
Mucho P2P
Member of DD Central
Posts: 946
Likes: 1,635
|
Post by Mucho P2P on Nov 23, 2018 14:11:50 GMT
The problem is, Lendy appear to be just either standing still or getting into ridiculous deals as in DFL019 to either cover their own backs or generate a high commission. Also, they'll never use the PF. An administrator would have to act in the lenders best interests and just enforce the debts. They'd also have no reason not to distribute the PF. We will be lucky if the PF covers the administrators cost in unwinding Lendy.
|
|
Mucho P2P
Member of DD Central
Posts: 946
Likes: 1,635
|
Post by Mucho P2P on Nov 23, 2018 14:26:18 GMT
The problem is Lendy's available funds to pursue recoveries, and that is dragging out to dangerous timescales. 700+ days in default is ludicrous and clearly just to avoid writing the debt off. 700 days isn't yet 2 years, and hence can not possibly be ludicrous. These are complex highly geared development projects, and a resolution for most could take 5 or more years. Why should Lendy be expected to resolve loans in less than 2 years when the likes of AC, TC , FS, FC etc don't. (at AC I have loans that defaulted in 2014 not yet resolved, at FC a loan that defaulted in 2012 is going to take another few years to resolve, hopefully before the 10 year mark is hit)
Unfortunately p2p platforms have not spelt out adequately to retail lenders what the implications are for investing in bridging / development debt, leading to totally unreasonable expectations. Some loans will repay more or less on schedule, some will repay within a year of being overdue, but the rest will take years to resolve.
As others have said its the clamour by retail lenders to bring Lendy down that is the real frightening aspect here. I have inreased my balance at Lendy by 30% this year (a 5 figure sum, I'm not a retail investor) but have stopped for now because of posts like yours and the mis-guided attacks in the media.
I agree with mrclondon fully, the professional investors amongst us understand the timescales involved in closing out loans. As long as they are paid back and with some sort of reasonable interest attached for the loan and extension period, most professional investors have less problem with the timescale. It boils down to the diversification of loans and diversification of product and diversification of platforms. For the record, I monitor and calculate timescales of selling loan parts on Lendy, and it appears there remains reasonable movement on the secondary market to generate further daily funds for Lendy. For those that wish Lendy to be placed into administration, the size of Lendy loan book could mean 4-5 years to unwind satisfactorily, or quicker if the tardy projects are sold off at a discount, resulting in a considerable capital loss for the current investors. Lendy is not a current account, it is an investment. Some you win, and some you lose.
|
|
Mucho P2P
Member of DD Central
Posts: 946
Likes: 1,635
|
Post by Mucho P2P on Nov 23, 2018 14:31:57 GMT
P2P feels increasingly like trying to run a three-legged race with a partner who has a loaded gun and a dislike of his foot.
Because investors can't escape bad p2p investments, some end up trying to find closure by avenging themselves on the marketplace where they bought the loan. If we could trade all loans at unrestricted discounts, those investors who want out could leave. Yet full secondary markets are proscribed, by the FCA I believe, and those who have influence with them. Out of a desire to prevent two consenting adults from exchanging investments at a mutually acceptable price, whole platforms and all the investments on them are being put in unnecessary jeopardy.
I do not believe that full secondary markets are proscribed as Money and Co (full ISA and full FCA), has a secondary market that lenders can discount/premium loan(s)/parts for up to 50%. I did not try going higher/lower. I have an account there and just checked!
|
|
|
|
Post by charliebrown on Nov 23, 2018 14:33:53 GMT
I’m not suggesting Lendy should be forced into administration, but perhaps the FCA or Ombudsman could be sent in to provide guidance and assistance.
I share the original poster’s frustration. From the outside looking in, Lendy’s so called world-class recoveries team are just not performing (at least not on my defaults). It can be argued that they’re working within a 3rd world legal system and that’s clearly true, but.... there are examples of incompetence everywhere you look. Examples from the top of my head are Hastings (where borrower excuses have been accepted for 531 days without any action), Wolves (where the investor vote was ignored), Sheds (where it’s suggested our first charge will be dropped to a second charge)... the list goes on. Do we honestly feel that LY is acting in our best interests? Rather than mudslinging what I would say is LY are out of their depth, they are lacking the skills and experience to execute recovery strategies. I do NOT want to force them into administration but I do want to send in help as they’ve totally lost control.
|
|
sj
Member of DD Central
Posts: 229
Likes: 330
|
Post by sj on Nov 23, 2018 16:21:09 GMT
The mere existence of this thread might have some positive effect at Lendy towers, it might light a tiny fire under their arses wrt recoveries (trying to be optimistic as I can for the sake of it). But i'm sure that people make these kinds of threat to them all the time.
|
|
|
|
Post by masquedefer on Nov 23, 2018 17:18:10 GMT
Don’t trust Lendy (perhaps) they have vested interests.
I prefer an LPA type receiver who at least will liquidate now rather than kick can down the road as does Lendy.
Come on Lendy save your name. Forget future business. Stop procrastinating. Recover our capital. Even 60% recovery could be face saving.
|
|
trevor
Member of DD Central
Posts: 557
Likes: 381
|
Post by trevor on Nov 23, 2018 17:22:32 GMT
Is would suggest that if Lendy gets put into administration the PF will disappear with the directors. Putting them into administration is daft. Take the emotion out of it and think clearly.
|
|
