wuzimu
Member of DD Central
Posts: 236
Likes: 735
|
Post by wuzimu on Mar 6, 2019 14:00:24 GMT
Ref / the 'old terms loans' ... Tossing a bit of petrol on the fire ....
I feel Lendy only exist now to take as much money as possible in opaque 'agency' fees from the distressed ~£135m loans.
If the 'old terms' loans produce a legal claim which pushed Lendy into administration then that will be a blessing to all lenders
I understand why some feel Lendy staying in business is important for the return of their distressed loans, but IMO you are wrong and deluding yourselves!
Whatever money lenders may get back is down to the strength of the security they have in each loan they hold. In as much as that amount may be alot less than you invested, well , you have already lost that money.
Lendy are simply a greedy and inept layer of extra cost that is eroding the amount available for lender recovery the longer this goes on. To have an idea of the amount of erosion - look at the Newmarket and Dereham 'recoveries'.
The conclusion of all the distressed loans is the appointment of a LPA receiver or administrator anyway, so any loan over 6 months late need that process starting, it doesn't require Lendy scale fees to do that.
It is an embarrassment to the regulatory system that FCA have not stepped in and removed Lendy from their agency over the loanbook, if lenders were not isolated from each other we should be organising and get new Agent.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330 
Likes: 11,549
|
Post by ilmoro on Mar 6, 2019 15:16:55 GMT
Ref / the 'old terms loans' ... Tossing a bit of petrol on the fire ....
I feel Lendy only exist now to take as much money as possible in opaque 'agency' fees from the distressed ~£135m loans.
If the 'old terms' loans produce a legal claim which pushed Lendy into administration then that will be a blessing to all lenders
I understand why some feel Lendy staying in business is important for the return of their distressed loans, but IMO you are wrong and deluding yourselves!
Whatever money lenders may get back is down to the strength of the security they have in each loan they hold. In as much as that amount may be alot less than you invested, well , you have already lost that money.
Lendy are simply a greedy and inept layer of extra cost that is eroding the amount available for lender recovery the longer this goes on. To have an idea of the amount of erosion - look at the Newmarket and Dereham 'recoveries'.
The conclusion of all the distressed loans is the appointment of a LPA receiver or administrator anyway, so any loan over 6 months late need that process starting, it doesn't require Lendy scale fees to do that.
It is an embarrassment to the regulatory system that FCA have not stepped in and removed Lendy from their agency over the loanbook, if lenders were not isolated we should be organising a new Agent.
You are making assumptions about where the fees have gone. Pop over to the FS threads and youll see an example of a loan where 50% of the realisation was absorbed by the costs of the recovery, none of it going to the platform. All of these loans except PBL027 have been the hands of IP for ages now so merely appointing an administrator isnt going to change much other than rack up more fees, probably considerably more than Lendy may ultimately receive. Hardly any of the overdue loans are not in the hands of an IP.
|
|
wuzimu
Member of DD Central
Posts: 236
Likes: 735
|
Post by wuzimu on Mar 6, 2019 15:59:11 GMT
You are making assumptions about where the fees have gone. Pop over to the FS threads and youll see an example of a loan where 50% of the realisation was absorbed by the costs of the recovery, none of it going to the platform. All of these loans except PBL027 have been the hands of IP for ages now so merely appointing an administrator isnt going to change much other than rack up more fees, probably considerably more than Lendy may ultimately receive. Hardly any of the overdue loans are not in the hands of an IP. My point being.. if distressed loans were being efficiently enforced after 6 months (as they should be) and in the hands of IP, what does it matter if Lendy are there or not?
An aside being 'course we don't know what agency fees Lendy award themselves, but ALOT for the value Lendy are adding, I bet.
Self evidently there are plenty of distressed loans not efficiently enforced and not with IP
-ask sussexlender what he thinks about Hastings loan , haha, and plenty of others .....
If an 'old terms loan' legal action were to force Lendy into administration, that would result in a change of Agent for the loan book and the more I think about it the more appealing that prospect becomes.
|
|
sl75
Posts: 2,092
Likes: 1,245
|
Post by sl75 on Mar 6, 2019 16:26:06 GMT
As highlighted in the other place by a salty old sea dog, if lendy settle or otherwise bring to a conclusion these particular loans before the No Win No Fee lawyers then it’s no longer possible for the lawyers to win or get their fee. Is it the case then that, according to a clause in the contract (cessation of action), that they will seek to recover their costs from the lenders? I wouldn’t wish that on anyone... Most likely scenario IMHO: They'd only be able to recover their costs from those with whom they have a contract... and the ones who signed the contract would be glad to hand over money to the lawyers as they successfully got their money back, and will credit the lawyers' threat of action as the reason that Lendy brought the loans to a conclusion.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330
Likes: 11,549
|
Post by ilmoro on Mar 6, 2019 17:00:16 GMT
You are making assumptions about where the fees have gone. Pop over to the FS threads and youll see an example of a loan where 50% of the realisation was absorbed by the costs of the recovery, none of it going to the platform. All of these loans except PBL027 have been the hands of IP for ages now so merely appointing an administrator isnt going to change much other than rack up more fees, probably considerably more than Lendy may ultimately receive. Hardly any of the overdue loans are not in the hands of an IP. My point being.. if distressed loans were being efficiently enforced after 6 months (as they should be) and in the hands of IP, what does it matter if Lendy are there or not?
An aside being 'course we don't know what agency fees Lendy award themselves, but ALOT for the value Lendy are adding, I bet.
Self evidently there are plenty of distressed loans not efficiently enforced and not with IP
-ask sussexlender what he thinks about Hastings loan , haha, and plenty of others including.....
The 'old terms loans', Which re not with any IP after years of delinquency.
If an 'old terms loan' legal action were to force Lendy into administration, that would result in a change of Agent for the loan book and the more I think about it the more appealing that prospect becomes.
See Collateral saga for how having an administrator as agent goes. Cost layer is there, perhaps the interest isnt.
Both DFL002 & PBL056 are with IP. Pretty sure DFL001 is as well though havent been able to verify.
There are some distressed loans not with an IP, though IP are involved, but the majority are.
|
|
Jeepers
Member of DD Central
Posts: 818
Likes: 721
|
Post by Jeepers on Mar 6, 2019 17:02:28 GMT
The problems with COL have arisen from not being FCA regulated and having an insurance wind down procedure in place.
You can’t compare the two.
|
|
star dust
Member of DD Central
Posts: 2,998
Likes: 3,531
|
Post by star dust on Mar 6, 2019 17:35:16 GMT
Only those involved in the London loans are opposed to Lendy entering administration. Ultimately though, any settlement due from these proceedings will be after the 1st April. As wuzimu said, investments are ultimately in the underlying security, not Lendy. All the loans seem to be going to the administrators in any case, Lendy acting as an incompetent agent just adds another cost layer. Well not me, I don't want to see Lendy go into administration at this stage. I am not involved in the London loans or any of these loans, but I do have funds in non-tradeable loans on the platform. I have been investing in P2P and Lendy for many years and so have witnessed a number of rather spectacular loan failures across a number of platforms. They take years (far more than two) to resolve, and during that process investors tend to get very little information about what is actually happening to resolve them. I am also involved in Collateral so I know what the impact of having administrators appointed there is.
On the whole it's my opinion that if a platform is taking, usually legal, action to recover capital you are probably better off letting them get on with it, appointing administrators would likely have an adverse effect on the amount recovered for investors in these loans and all the platforms other loans. Thus action taken which forces Lendy into administration will be a financial detriment to all its investors in my opinion.
|
|
averageguy
Member of DD Central
Posts: 1,188
Likes: 895
|
Post by averageguy on Mar 6, 2019 17:51:11 GMT
All nicely put and personally I agree with all of that ....although....I'm not finding that phrase in bold relevant to me....havn't beed fed in ages! Just this year, we've been "fed" with full repayments of DFL035, DFL025, PBL133, PBL194, PBL192, partial repayments of PBL163, PBL068, DFL026, and interest still being credited this month for DFL003, DFL006, DFL010, DFL014, DFL020, DFL021, DFL022, DFL029, DFL032, DFL033, DFL034, DFL037, PBL196, PBL197, PBL199, PBL200, PBL201 (there were probably some more in Jan/Feb). At nearly 2 years overdue, I feel I’ve given enough time for Lendy to bring something to the table. Quite frankly, I’ve been on the ‘merry-go-round’ of updates that often, I’m feeling dizzy. Personally, I don't consider 2 years a particularly long time for a recovery process where the other parties are actively obstructing the process. Some other platforms are still making recovery payments to me 5 or 6 years after the loan originally fell due, including at least some cases where a sudden payment "appears" out of the blue that settles the remaining balance of a loan that hadn't seen any visible action for a couple or more years previously. My understanding is that until or unless all relevant parties are bankrupt, or the loan goes 6 years without being "acknowledged", it still remains enforceable. Much as I'd hoped for better liquidity and faster recoveries than that (and potentially payments from the platform/provision fund as a gesture of goodwill before the full recovery process was complete, as seemingly happened with the first couple of loans to enter protracted recovery processes), the possibility of needing to wait out the full recovery process potentially lasting several years was always on the cards, and a risk taken into account at time of investment, albeit considered relatively unlikely at that time.
It seems to have come as a surprise to some investors that recovery processes for delinquent loans with obstructive borrowers can take many years of legal wrangling. I'm not sure why, as this was often discussed, even if it was soon dismissed as a seemingly remote possibility unlikely to affect more than a handful of loans, and "legal processes can sometimes take many years to resolve" is hardly some kind of big secret. I don't imagine that your case would get resolved much quicker either... and it seems to me there's a good chance that it'll be irrelevant by the time the case is actually heard (e.g. where there are other cases on which Lendy is awaiting the outcome before being able to publicly disclose their actions on these loans, it would seem perfectly reasonable for them to ask the court to wait until those cases have reached a resolution before your case can be heard, so as not to prejudice those other cases).
The short-term concern is that any time the legal team spend responding to your case is time they can't spend advancing the other cases intended to recover our money, so your action may have the opposite effect to what you seemingly desire, causing even more delays.
Like I said the feeding isn't relevant to me
|
|
|
|
Post by greeninvestments on Apr 3, 2019 16:29:28 GMT
Thanks Jeepers, I may be interested and so please could you share the information with me (I tried sending you a PM but I received the following error message: You may only send messages to staff members)
|
|
