No need for so much doom and gloom. A lot of these properties are already with administrators. Additionally the FCA has learnt a lot of lessons from the Collateral debacle and hence been a lot more prepared to deal with the fall-out.
How do you expected that this would help? Did you tried to analyse what is the real market value of the underlying security? I did. It's abysmal to say the best. And everyone will take a cut now as well. I am pretty sure we won't see more than 20% of the loan value back in average and this would still be a great outcome.
The only people celebrating tonight are the unscrupilous borrowers.
Why? They are not off the hook. Either appointed administrator or someone who will buy the loan portfolio (most probably much less scrupulous and more experienced in getting the money back than Lendy). They were much better off with Lendy, who couldn't really screw their name as the borrower, now someone who is only after the money will step in. But those money will unfortunately by large don't land in your account.
Put you in the pessimistic, sensationalist allegations camp then 😁
Minor shareholder in AC, BO, FO, CP, WA, Pfi, Ccube, Sdrs, AE, ABL. AC beta test. LAG, MTAG, FSAG
PLEASE NOTE : All opinions and observations made on this forum are my own view and made in a personal capacity. I have no links to any platform nor am I a financial professional so posts should not be considered financial advice or promotion. I accept no responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained in my posts.
DFL012 being a case in point - hopefully will just be down to distributing the funds received without the exorbitant Lendy fee deduction...
That's the optimistic view .. the pessimistic one is that this will form part of the assets needed to pay the administration costs, and you'll get back your share of what is left when the fat lady finally sings..
Most LY assets are debts - this one may actually have some hard cash attached (unless the cheque got lost in the post).
There are all the indicators that they actually used even the money on investor's accounts. They plundered the provision fund. It would be super naive to assume that this cash was just sitting idle somewhere waiting to be redistributed.
I take it that there is going to be no distribution until all loans are finalised?
We could be in for a really long wait.
The administrator would most probably try to sell the whole portfolio of loans to the highest bidder. This is a standard procedure in this case. So you might get some money rather sooner than later, but it will be I guess no more than 20% of the loans outstanding.
What happened to the good loans? I fear the recovery may be as bad as with collateral :/
Most probably all loans will be sold out by appointed administrator as one package. There has to be an independent valuation of each of the loan before the sale and money then can be distributed proportionally according to the share of the valuation of the loan in your holdings.
The provision fund still has a charge outstanding against it as far as i am aware - so i guess there is no provision fund anymore.
How can that be legal? Surely the first charge should be for the investors as this is the reason it was created
It's actually perfectly legal. Provision fund wasn't investors money. Those were actually Lendy's money which they used as a merely marketing tool to lure investors with promise of some extra security. The moment they took loan from this money, it was clear that provision fund is gone forever. But that doesn't matter that much though as it would not cover much anyway. It would work only for some unpaid interest, but the reality is that there is approximately only 46% of recoverable security under the unperforming loans.
Gonna be some real poor sods there who did put more than they could afford to lose in Lendy.
Feel that this could have been averted perhaps if more action was taken a year ago, unfortunately they kicked the can down the road for so long on these loans and were more or less untruthful on a lot of matters.
Brooke is a coward I feel, I hope justice is done against him in some way.
They actually tried to sell the whole portfolio and close down, but the offers were on the levels of about 30% of the loans outstanding at that time (so what I heard), so they decided to try to kick the can and get out as much as possible, as they believed they should get something in the levels of 70%. Now the reality is we won't see more than approx 20%, but rather something like 10% of loans outstanding in average.
Do you even understand the concept of client money and the additional reporting that entails?
I do, and I saw the extra sentence they added to the "what if" page. You really believe there were technical issues with their payment processor? For so long? Those can happen but last like hours at top. The much easier explanation is that they actually used the investors money for operations and then when they got some recovery payments did the "backlog" of transactions. They didn't even put the April interest on the accounts so people wouldn't withdraw the money as most probably there was nothing to be withdrawn. Yes I understand the concept, but saw already one too many cases when in the moments things got wrong this concept was simply ignored in the hopes that it will help sort out things. 9 out of 10 it made them worse.
"Anyone invested in "old terms" loans may now be an unsecured creditor potentially? As they technically invested directly into Lendy they may have gone from being in allegedly "safe" loans that were "100% guaranteed by Lendy" to having no security at all and being at the back of the queue. Time will tell..."
The above is an interesting point. I only had money left in Devon old terms and I had submitted a claim for my money because Lendy were clearly in breach of the terms and conditions applicable to those loans in that they hadn't put the assets into auction etc etc etc.
Lendy treated my claim as a complaint and then completely ignored it and the 8 week period came and went without any formal response. I then escalated the matter to the Ombudsman as a formal complaint against Lendy for being in breach of FCA rules and that matter was ongoing with the Ombudsman as of today.
I had considered submitting a claim in the small claims court which you can now do online to get judgement against Lendy but the court fee for that would have been another £105 of my money and I thought they would probably just ignore the judgement against them.
I am one of the fortunate ones because I was an early investor and have made more in interest from lendy than I have stuck in them as of now so even if I get a total wipeout on what I have left I will still come out on top. However I realise the situation for a lot of other investors will be quite worrying.
All I can say is that this has come as little surprise to me and I'm sure other forum users because the writing has been on the wall for quite a long time now.
Frankly I am staggered that the FCA gave them full authorisation less than 1 year ago when they were clearly already in difficulty with the very high level of defaults and adverse press articles and bad online reviews.
The golden days of P2P lending are well behind us, in my opinion. I am now retired from active P2P investing and the undertaking of due diligence. Just awaiting resolution of 2 DEF loans in LY; 2 DEF loans in MT and my entire COL investment.