Has anyone ever had a answer from them about the provision fund that they supposedly had in place and also what their own exposure was to this as they advertised that they took a stake in each loan and would stand any losses first so before P2P investors.
I had a email conversation with them about it last June, read from bottom up:
Wellesley:
Your request has been solved. To reopen this request, reply to this email.
Mel Aziz (Wellesley & Co)
7 Jun, 2:40 pm BST
Dear
Thank you for your reply.
To confirm provisioning has always been used on a discretionary basis and our Board looks at the circumstances in each case.
Provisions have been made previously and Such payments may be made either in anticipation of a Default Event or as a result of a Default Event, lenders will not necessarily be notified each time a provision has been made or receive a direct payment.
Previous losses have been provisioned for, which means no amount has previously been suspended from your capital ( 03/03/2015 to 26/04/2018).
Since the 27/04/2018 a Suspended Amount was applied to all our Peer to Peer lenders.
£10.8million worth of losses have previously been covered, meaning since our launch in 2013 this is the first potential loss to be passed onto our lenders.
The Decision has been made that P2P investors bear their share and Wellesley covers its own share of the loan default with total transparency to the process and in line with peer to peer lending.
In reply to your email below:
1) No further action is required, as advised the application was made on your behalf and all lenders.
2) On this occasion no provision will made for the Suspended Amount matched to the defaulted loans
3) The Decision has been made that P2P investors bear their share of any loss to arise for the 3 loans currently in default (if any)
Please note, provisions have been made by Wellesley Finance on a discretionary basis and do not represent any form of guarantee to investors. To read more see the link below:
www.wellesley.co.uk/about-wellesley/loan-performance/The current potential forecasted loss amount to your capital is xxx and we will provide final recovery updates via email to all lenders.
Regards
Mel Aziz
Me:
7 Jun, 1:02 am BST
Thanks but I don't see anything in the terms and conditions that allows Wellesley to make a claim from the provision fund on my behalf. 10.5 allows the Provision Fund Board to make a payment from the Provision fund 'without prior discussion or notification' but that is not what you are saying happened. Indeed I did not receive a payment from the Provision fund and never have.
So back to my 10.2 claim. Please would the Provision Fund Board:
1) Accept that I have made my claim correctly in line with Section 10 (or alternatively point out what else I need to do).
2) Review my claim in accordance with Section 10.3.
3) Decide my claim and let me know the result.
Wellesley:
Mel Aziz (Wellesley & Co)
6 Jun, 3:07 pm BST
Dear
Thank you for your email.
To confirm a claim on behalf of our lenders was already made prior to our correspondence on the 27th April, Until now Wellesley Finance has absorbed the losses it has experienced on its loans. This has meant that no investor has historically suffered a loss to their interest or capital. Our Provisioning has always been used on a discretionary basis and our Board looks at the circumstances in each case. We have always tried to shelter our investors. However, with these loans we believe it is appropriate that P2P investors bear their share and Wellesley covers its own share of the loan default with total transparency to the process.
To date Wellesley has absorbed £10.8million worth of losses, and our Peer-to-Peer investors have now absorbed £2.6million.
I do hope this clarifies the current position and we will provide an update regarding the recovery of funds to all lenders via email.
Regards
Mel Aziz
Me:
5 Jun, 11:39 pm BST
This is a follow-up to your previous request # "RE: Important information r..."
Thanks I hereby make a claim to the Provision Fund Board under section 10.2 of our agreement. Please would you confirm my claim has been received.