cwah
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Post by cwah on May 24, 2019 19:57:08 GMT
Hello, Just in case you are not aware, the guys in Collateral have received their administration progress report: p2pindependentforum.com/thread/14729/final-administration-progress-report?page=5&scrollTo=328684Out of date, the administrator managed to recover about £780k of GOOD loans (the ones who paid back in full) and their administrations fees racked up to £635k. So out of good loan who are supposed to pay back 100%, they'd only recover maybe 10-20%. I can only imagine what would happen next, for the more complicated loans!! Some are talking about taking action against the FCA, which actually created a lot of mess because the company wasn't insolvent. Now with Lendy, I fear the same is going to happen. We're going to recover next to nothing for our loans, even the good ones will turn sour with the administration fees. And no one to press the administrators to work faster so they'll drag their legs to rack up fees. FCA is supposed to provide protection. But so far they've done the opposite. They created load of additional rules for Lendy platform we weren't aware of to comply with the FCA. They forced to prevent the loan sale when it was just delayed by few days. So my plan to sell the loan at later stage to derisk suddenly didn't work. It wasn't what I signed up for. I bet they are also the ones preventing Lendy to add more loans until the default are repaid, precipitating Lendy into administration. Now it's put under administration and there will be no one who would look for maximum recovery as there are no incentive to do so. We should look at doing something with the guys in Collateral to recover some money... unless you're happy to pay it all to administrators! |
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mary
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Post by mary on May 25, 2019 5:12:31 GMT
With Collateral, the FCA have made a clear error and have misled investors.
With Lendy what is your claim? There is obvious management incompetence, but that’s not the FCA’s fault.
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Post by GSV3MIaC on May 25, 2019 7:00:16 GMT
It would be giving them full approval, at a time when everyone else was already asking hard questions...
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adrianc
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Post by adrianc on May 25, 2019 7:12:38 GMT
Umm, that's £780k recovered to date. The company is no longer in administration, it's now in liquidation. That's it. Recovery still continues. The administration fees have been heavily front-loaded, not least due to the utter incompetence and/or deliberate actions of COL and RR in allowing the loan book to be "lost". Recoveries, otoh, are heavily tail-loaded. Ly, otoh, have gone into the FCA-sanctioned pre-planned wind-down. The two situations are not even remotely comparable.
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Post by brightspark on May 25, 2019 17:37:06 GMT
The FCA pretty much knew from information that they would have had to hand that Lendy was a candidate for an early Administration. The only question was exactly when. Now we know. With their foreknowledge I think it likely that the FCA will be in a position to deflect any criticism of their handling of the case. Likewise any claim. It will be Caveat Emptor and much hand-wringing. The only other question of importance is which platform is next?
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wuzimu
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Post by wuzimu on May 25, 2019 17:44:34 GMT
You can't realistically bring a claim against fca, with any chance of success
IMO This is not where lenders need to focus their attention.
Everything will all come out in the end, and if the FCA are at fault, well they are not going anywhere, wait till the end of the saga.
Lenders can log a complaint on fca website if wanted, but it will be held until the case closed
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zccax77
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Post by zccax77 on May 25, 2019 17:48:30 GMT
You can't realistically bring a claim against fca, with any chance of success IMO This is not where lenders need to focus their attention. Everything will all come out in the end, and if the FCA are at fault, well they are not going anywhere, wait till the end of the saga. Lenders can log a complaint on fca website if wanted, but it will be held until the case closed Wuzimu, what are your views in terms of outcome of the administration?
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Post by samford71 on May 25, 2019 18:03:37 GMT
It would be giving them full approval, at a time when everyone else was already asking hard questions... Agreed. It did take an inordinate amount of time for the FCA to give Lendy full permission. That in itself was a warning sign that there were issues. So perhaps when the administration, liquidation etc all done and dusted it may be possible to go back and argue that FCA should not have given Lendy full permission. Realistically, however, I can't see how that argument can really be proved.
Fundamentally, the FCA's error lies not with Lendy itself but with the whole process of authorization for P2P platforms. The decision to go for "light touch" regulation, the decision to allow any pre-existing platform "interim permission", the ridiculously low bar in terms of capital adequancy requirements (which they then reduced!), the willingness to allow rank amateurs, with no prior experience, to set up platforms. The chickens are coming home to roost.
Let's just hope for all the lenders on Lendy (and all the other lenders on the many platforms that will fail over the coming years) that FCA is better at spotting when to intervene and force administration than they were at giving out the permissions in the first place.
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Post by brightspark on May 26, 2019 18:05:12 GMT
As I see it the onus is not on the FCA to make the rules. It is an enforcer and may influence the City Regulators whose role is to keep City corruption at bay and so enhance the City as a global financial centre. Vested interests in the City have influence. Their solution is to "protect" investors by ensuring that only the "sophisticated" are allowed to invest as individuals. The non-sophisticated will have to use City intermediaries to carry out their investment requirements. As a result p to p will effectively be squeezed out and the City role will be protected and enhanced. There is no vested interest to lobby for better Regulation of those running platforms and the result is a succession of misfortunes such as the Collateral and Lendy failures. It was pretty much inevitable. Perhaps we are in the death throes of p to p as we know it?
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Greenwood2
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Post by Greenwood2 on May 27, 2019 10:22:52 GMT
As I see it the onus is not on the FCA to make the rules. It is an enforcer and may influence the City Regulators whose role is to keep City corruption at bay and so enhance the City as a global financial centre. Vested interests in the City have influence. Their solution is to "protect" investors by ensuring that only the "sophisticated" are allowed to invest as individuals. The non-sophisticated will have to use City intermediaries to carry out their investment requirements. As a result p to p will effectively be squeezed out and the City role will be protected and enhanced. There is no vested interest to lobby for better Regulation of those running platforms and the result is a succession of misfortunes such as the Collateral and Lendy failures. It was pretty much inevitable. Perhaps we are in the death throes of p to p as we know it? The FCA have tried light touch regulation and that is not working out well for lenders. Most of the platforms don't have the funds to pay for 'better regulation', the FCA could increase regulation, increase fees to cover the extra supervision required and drive a lot of platforms out of business (may not be a bad thing). Or they take themselves out of the firing line by making it necessary for retail lenders to go through some sort of professional so that they would have recourse to that professional if they were given bad advice and lost money.
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cwah
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Post by cwah on May 27, 2019 10:52:53 GMT
What's is truely awful is that should the FCA not intervened, I'd have exited all my loans as per my plan and wouldn't have loss 5 figure sum.
I signed for something and the plans changed in between!
Nothing to do with bad advice and I had a strategy to mitigate risk!
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nsinvestor
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Post by nsinvestor on May 27, 2019 11:15:26 GMT
A big assumption that there would have been enough gullible investors remaining to buy up your loan parts in the secondary market, or enough liquidity inflowing via Lendy Wealth. Even without FCA intervention, I suspect you would have found it challenging to mitigate as you've suggested given the very obvious state of the loan book
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Greenwood2
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Post by Greenwood2 on May 27, 2019 11:26:44 GMT
Relying on being able to sell on any SM, is a recipe for disaster, liquidity is never guaranteed, and past liquidity does not mean future liquidity as lenders have found out on various platforms.
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cwah
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Post by cwah on May 27, 2019 11:39:00 GMT
There were some loans I've almost exited and were half way sold. Then suddently it stopped.
Really, even if I can accept I'd have some losses it wouldn't be to the extent to the current one.
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iRobot
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Post by iRobot on May 27, 2019 11:52:48 GMT
There were some loans I've almost exited and were half way sold. Then suddently it stopped. Really, even if I can accept I'd have some losses it wouldn't be to the extent to the current one. I'm a little confused here, cwah. Which loans are you referring to, and which FCA action(s) on what date(s)?
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