Lendy Recovery - Claim against the FCA?

If a loan is late, it can be suspended at any time. 

Even if a loan isn't late, it can be suspended at any time, if it breaches any aspect of the loan agreement.

Relying on the SM as an exit strategy is always going to be risky.

But please do contact the FCA and complain that the Secondary Market let you down. The more the FCA come to fully appreciate the reliance being placed on SMs, the better.

Unfortunately Lendy had quite the habit of changing the rules regularly as they went along.

"Fast fast and pivot" is what I believe they called it in one of their marketing newsletters from a couple of years ago: 


"Fail fast and pivot

"Fail fast" or "pivoting" is about looking at ways to fix the short term. The smaller things. Of trying something, getting fast feedback, and then honing it. Many entrepreneurial businesses, whether in the UK's world-beating fintech centre, operating out of innovation hubs like wework, or the start-up capital of the world, Silicon Valley, operate in this way.

Not sure how to improve your service? One way would be to talk to a lot of people, get all their different views, assess their merits, decide what to do, schedule it on the development roadmap, evolve and test it, dot all the i's and cross all the t's and then maybe release it, if the person in charge of the project is still around.

Or you could just get something out there and if it doesn’t work, fail fast, pivot, and try something else.

The latter has been our approach. And one we'll be sticking to as we navigate our path, in a sector that is still very young, but learning fast from its past successes and mistakes. We took this approach when we built the platform over four years ago. And we've stuck with it, as new players have joined the market, and the FCA has taken more interest in the models that are operating." 


Personally I'd have probably gone with the first option in a regulated financial business with hard-earned money at stake but perhaps that's just me? Maybe in Mr Brooke's view Lendy was the "failing fast" and Copious Capital is the "pivot"? 

Sorry, but GDV is clearly explained in the various DFL valuation docs, and it doesn't take a rocket scientist to understand that a part-built development project is not worth a fraction of what it's worth when completed.

If we look at just the loan description from one of the DFLs clicked at semi-random, with actual project numbers redacted as irrelevant for the illustration...

The "Gross Development Value of £X (£X per unit x X @ X ft x £X p/sqft)" figure is the headline figure from the top of the page, from which the "Loan to GDV" is calculated".

And that's before we even click on the valuation.

If you didn't understand that, then why on earth were you contemplating investing? Do you not think there's any responsibility at all on investors to understand such absolute basics themselves? Did you really think that, if the development stopped for some reason, the GDV figure is something that would be achievable for a sea of mud with some piles of bricks and bits of poured concrete? If so, where did you think the final sales price for the completed houses would come into it?

Can one make a claim when they only awarded status 11/07/2018?


Here are listings here with current permissions:
register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000003LH3vsAAD

"This firm must protect the money it holds and/or controls on behalf of customers. It cannot lend this money or use it to finance its own business."

Here's the bit that was put in place recently
"Requirements are rules placed on the firm that apply to all of the financial services activities that it can operate.

The firm is the subject of an asset restriction

The Authority has decided to impose with immediate effect a requirement on the Firm, under section 55L of the Act, that it:

a) must not in any way dispose of, deal with or diminish the value of any of its assets; and

b) must not in any way release client money without in either case the prior written consent of the Authority"

What does FCA approval really confer?

I think that it could imply more than it actually does confer, to many.
I can see that it awards permissions, but I don't know how far reaching the implications are of those permissions in terms of lender money safety/protection. What is the FCA responsible for here?
 

"maybe"?!!!   

And to emphasis this BondMason Core has just gone into wind down and the ability to sell has been removed completely. Yesterday you could have cashed in your portfolio today you can't (well maybe not quite yesterday because it would take a few days to complete).