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 Dec 22, 2018 2:07:06 GMT
An interesting point here, please correct me if I’m wrong. All of these loans had sizeable SM queues, meaning, assuming interest is IOA, Lendy were making a significant profit from swallowing the interest of people unsuccessfully trying to sell out. By suspending these loans does that mean they’ve cut off that revenue for themselves? Also, will we still receive interest on these loans now they are suspended or will Lendy stop the interest payments just like they did with the Sheds loan? The suspension of interest when loans are up for sale has always been difficult to justify. I feel it would be more acceptable if interest saved were put into a ring fenced provision fund.
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Post by picanto on Dec 22, 2018 8:55:18 GMT
An interesting point here, please correct me if I’m wrong. All of these loans had sizeable SM queues, meaning, assuming interest is IOA, Lendy were making a significant profit from swallowing the interest of people unsuccessfully trying to sell out. By suspending these loans does that mean they’ve cut off that revenue for themselves? Also, will we still receive interest on these loans now they are suspended or will Lendy stop the interest payments just like they did with the Sheds loan? I'm not aware of Lendy's financial state in 2018 but according to some forum posts on here and Trustpilot Lendy are on the brink of going into administration. Can you imagine how bad their financial accounts would have looked if they had paid all the interest (amounting to hundreds of thousands of pounds) which had been up for sale on the secondary market? I'm not saying they are right to withhold that interest, that's for another debate. But Lendy would probably be struggling financially. As for the suspension of loans, Lendy should still pay interest.They haven't said otherwise and they still paid interest on DFL017 even though that had been suspended from a very early stage.
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p2p2p
Member of DD Central
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Post by p2p2p on Dec 22, 2018 9:27:40 GMT
As part of my diversification strategy I avoid multiple loans from the same borrower, and its been a failing of Lendy that they often omitted the fact, and you'd had to guess by location or development type. Other platforms are much more open about this. I am over-exposed to these loans because while I spotted some connections, I'd missed others.
All platforms should to say on the investing page "you already have X with this loan, Y with this borrower", though I can see how this would be hard to enforce.
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Post by supernumerary on Dec 22, 2018 10:00:06 GMT
An interesting point here, please correct me if I’m wrong. All of these loans had sizeable SM queues, meaning, assuming interest is IOA, Lendy were making a significant profit from swallowing the interest of people unsuccessfully trying to sell out. By suspending these loans does that mean they’ve cut off that revenue for themselves? Also, will we still receive interest on these loans now they are suspended or will Lendy stop the interest payments just like they did with the Sheds loan? charliebrown, PLEASE read this following post by star dust, written on another thread. I was selling the now suspended PBL199. Will the interest now accrue again or how does this work? Thanks.
You will need to cancel the sale of your loan part and then the interest will start accruing again. You can cancel it under the My Loans/ Selling LoanParts / drop-down for that loan/part - far right blue "Cancel Sale" button. It should then move to your Live Loanparts section with interest accruing.
The loan is still marked as IOA and I assume interest was held on account for the term of the loan when it drew down in June, it still has a term of 161 days remaining. Of course if the loan is unsuspended but not repaid you would then go to the back of any remaining sales queue should you want to put it up for sale again. You should get interest for the period that it is not up for sale though - assuming it's ever paid/recovered post term that is. I probably haven't been paying enough attention recently, but I am assuming they still pay interest on suspended loans that are IOA. To answer my own query in the affirmative, their FAQ state "What happens to interest once secondary market trading in a loan is suspended?
1 year ago
If secondary market trading in a loan is suspended, investors will continue to receive or accrue interest dependent on whether Lendy are holding interest on account or not.
Please note that in the event of a suspension of secondary market trading, those with loans for sale on the secondary market at the point of suspension will not receive or accrue interest in line with our usual policy. Investors may therefore wish to cancel the sale of suspended loans.
Loans cannot be placed for sale whilst secondary market trading in that loan is suspended. Loans that were already placed for sale prior to the suspension will maintain their position within the sale queue."
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invester
P2P Blogger
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Post by invester on Dec 22, 2018 10:22:00 GMT
I'm not aware of Lendy's financial state in 2018 but according to some forum posts on here and Trustpilot Lendy are on the brink of going into administration. Can you imagine how bad their financial accounts would have looked if they had paid all the interest (amounting to hundreds of thousands of pounds) which had been up for sale on the secondary market? I'm not saying they are right to withhold that interest, that's for another debate. But Lendy would probably be struggling financially. As for the suspension of loans, Lendy should still pay interest.They haven't said otherwise and they still paid interest on DFL017 even though that had been suspended from a very early stage. I seem to remember a couple of years back that even raising the possibility that Lendy might fail got a thread artificially pressed down the page. I am annoyed with their antics recently. The  'webinar', and yesterday we had some nicely spoken words which tries to soften down the fact that big proportion of the remaining loan book is now distressed and administrators called in. Having said that in my own opinion (YMMV) they are not on the brink. This time last year, they were profitable (although arguably the rot had set in by then), it is difficult to imagine anything else but a loss for this year given the struggles in the big loans and the lack of new business being written. Value of debtors would be impaired, but then it is the investors that suffer the impairment, not them. And this time last year, they had £5.5m as cash. I feel a lot of that would have to go towards funding losses this year, but I would be surprised if at the moment they are out of cash. The problem lies in the future. If they don't turn it around soon and restore investor confidence, it is pretty much fact they would face the end. In my opinion, they could not afford to have a 2019 similar to 2018, and therefore the latest batch of initiatives (Wealth, new board members) are one of the last rolls of the dice.
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Post by investor1925 on Dec 22, 2018 10:40:09 GMT
I'm not aware of Lendy's financial state in 2018 but according to some forum posts on here and Trustpilot Lendy are on the brink of going into administration. Can you imagine how bad their financial accounts would have looked if they had paid all the interest (amounting to hundreds of thousands of pounds) which had been up for sale on the secondary market? I'm not saying they are right to withhold that interest, that's for another debate. But Lendy would probably be struggling financially. As for the suspension of loans, Lendy should still pay interest.They haven't said otherwise and they still paid interest on DFL017 even though that had been suspended from a very early stage. I seem to remember a couple of years back that even raising the possibility that Lendy might fail got a thread artificially pressed down the page. I am annoyed with their antics recently. The 'webinar', and yesterday we had some nicely spoken words which tries to soften down the fact that big proportion of the remaining loan book is now distressed and administrators called in. Having said that in my own opinion (YMMV) they are not on the brink. This time last year, they were profitable (although arguably the rot had set in by then), it is difficult to imagine anything else but a loss for this year given the struggles in the big loans and the lack of new business being written. Value of debtors would be impaired, but then it is the investors that suffer the impairment, not them. And this time last year, they had £5.5m as cash. I feel a lot of that would have to go towards funding losses this year, but I would be surprised if at the moment they are out of cash.The problem lies in the future. If they don't turn it around soon and restore investor confidence, it is pretty much fact they would face the end. In my opinion, they could not afford to have a 2019 similar to 2018, and therefore the latest batch of initiatives (Wealth, new board members) are one of the last rolls of the dice. Is that the cash they are giving to council to fight the "London Loans" ? To be fair, I do agree with you.
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Post by charliebrown on Dec 22, 2018 12:34:18 GMT
If Liam’s got £5.5m in the bank, I’m not confident he’s going to want to spend it on Funding recoveries that don’t benefit him. As we have all mentioned many times, all Lendy really needed to do to keep us on board (no pun intended) was to have acceptable loan performance and to treat us with respect. They’ve failed on both counts!
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'webinar', and yesterday we had some nicely spoken words which tries to soften down the fact that big proportion of the remaining loan book is now distressed and administrators called in.