As an investor, currently earning 0% interest on Lendy, I am concerned that the sheer level of just negative positing on here will become self fulfilling. When I first invested in Lendy I did the usual checks, company looked legit, loans looked good, all the reviews at the time were positive so I invested (A sizeable chunk of savings but still <50%). I knew that any savings with lendy were there for the log term and was fine with that as long as I was getting a decent return at the end. Provided the LTV is good AND realistic you may have to wait but you will get your money in the end. The problems arise when 2 things happen:
1, Valuations are massively wrong, This one looks like in certain circumstances it has happened, not all of my loans but SOME of them as you look now, check local property prices etc are just plain wrong.
2, The company (Lendy) goes into administration. This one has not happened yet but certainly looks like the next 6 months can make or break it, either the reputation is repaired or it is gone. IF it goes bust we are royally done, any cost of recovery will grow out of control, whilst Lendy are in charge of recovery its in their interest to get back 100% and pursue any deficit, even if they dont profit directly they profit from PR and re-investment. If someone else steps in they are there to cream what they can ASAP and get out, they will accept offers of vastly under even the original balance, forget interest or bonus payments.
Its fair enough to say that Lendy has messed up, but unless you want to shoot yourself in the foot saying its all a big scam and run away you are doing every investor a dis-service.
We should be asking, who the hell did some of those valuations, why are they allowed to get away with such vastly wrong sums and what action is being taken?
We should be looking at every single NEW loan that comes on the books and asking, who did that valuation? Does the value of all the collateral as it stands on the ground today, if seized and sold at public auction, minus all fees, would that cover all the capital in the loan?
Prevent any new bad loans from getting off the ground, protect yourself, myself and others by calling out loans you think are too risky. Mistakes have been made but the business model is sound and I want to be able to invest for 6-24 months and not worry about it dont let EVERY google search with the term Lendy return "Run away!"
Post details of GOOD loans, IE if a loan is announced, the valuation looks to be under or very fair and its only 50-60% then come on here and say, loans like that should become the staple of Lendy and repayments from that farmed back into other safe loans.
PS I dont work for Lendy, I have no connection to lendy beyond having money invested and its that money i want to protect prompting me to post. I will admit when I started I bought in too much to the valuations and intially bought alot of the secondary market loans for the bonus interest, provided they pay fully in the end I really dont mind waiting as its for retirement or the kids anyway, but if Lendy goes under I know recovery will suffer.
