Changes afoot at Lendy HQ

Log in, click "My account", then on "Transactions" section set a large date range (for me it works even if I put a start date before I joined Lendy, although this takes a while to download), and then the "Export" link at top-right (on desktop version of site). Open the resulting .csv in your favourite spreadsheet program, and search/filter to find lines whose "Type" is "Capital shortfall".

You'll find lines relating to DFL025 and DFL035 only - the only 2 loans where Lendy has declared a loss (although they minced their words somewhat so it didn't sound like they were declaring a loss - the capital losses were equal to interest credited on the same loan parts as I recall, so for most investors they'd be offset for tax purposes and it's pretty much the same as if they'd retrospectively relabelled the previous interest payments on live loan parts as repayments of capital...)

Also, in both those cases, a claim from the provision fund was approved in order to reduce the losses to this level, so for those who view [Lendy + Provision Fund] as part of the same system (given that Lendy would presumably get to keep any surplus after the entire loan book has wound down), Lendy had subsidised us. For those who view them as entirely independent (and in particular those who believe the provision fund is likely to prove grossly inadequate when the current loan book has been wound down and all other claims resolved), any fees Lendy may have received could be considered in part to have been subsidised by "robbing" the provision fund.

That 'Total capital shortfall:' is a new line on tax statements that has appeared at some point since December, I guess because of DFL025 and DFL035.

I wasn't in these loans. Can someone tell me what was special about these to write them off and not any others? Did the borrower die bankrupt?

Also, in both cases, claims were approved on the provision fund that reduced the losses to a level where Lendy could spin it as "not really a loss" because it was offset by interest.

These can be observed at lendy.co.uk/how-it-works under "historic provision fund usage" section.

Higher up that page, we also see that (at least as of the last time it was updated) Lendy anticipated completing the claims associated with almost £1.9M of the PF total by "mid 2019". If the various cases/claims in the "claims underway" section are in any way linked to these, this may also be the time we see some kind of resolution on some of the loans there where we're currently just getting vague updates about legal processes.

That would also indicate that this is the main factor that the success of winding down Lendy hinges upon - if the various claims are successful, we could get [almost] all our money back on the "Claims underway" section, and the PF itself would also get almost all its money back boosting its cash value to £3.4M - probably enough to allow it to meet the remaining claims from those loans and still have some coverage for the rest of the loan book assuming a similar outcome from claims and potential claims that may be associated with those, but if they're all unsuccessful, not only will there be larger losses to declare from the loans in the "Claims underway" section, but also the PF might have little more than its current £1.5M balance, making it substantially short of even the losses that would have already crystallised at that time (right now the "Claims underway" section alone has £7.6M of potential losses awaiting resolution of various claims, and plenty more seem likely to be lined up in the "non-performing" section).