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Post by HMS Ardent on May 27, 2019 14:47:18 GMT
The main people who know (or will soon find out) if that is actually the case are the appointed administrators, and the FCA who've been giving Lendy VERY close scrutiny for the last few weeks/months.
As the first person I know of who's publicly admitted to having even touched the "Lendy wealth" product, I'd be fascinated to know what you actually see when you log in - e.g. are there sections of the site you can click through to in order to find out where it says your money is currently invested, or is absolutely no information given apart from the amount invested and the product?
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Post by Deleted on May 27, 2019 15:11:01 GMT
So, if I'm reading that correctly, for the privilege of being a 'wealth' client, the detailed information Lendy provide about your investment is a circle and a line saying 'active' ?
Geeez, that is sad.
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zlb
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Post by zlb on May 27, 2019 15:13:43 GMT
Even if under the scrutiny of FCA, is how the product was advertised or sold to someone, still a point that could gain compensation? There was discussion previously about how 'saving stream' was advertised. There has also been mention of compensation, but I suspect that who ever received that isn't allowed to discuss it.
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Post by HMS Ardent on May 27, 2019 15:38:36 GMT
I wish compensation for bad advice could be given...but i doubt it very much..as I doubt the advisor was authorised. See below.
"The activity of advising on P2P investment became regulated in April 2016; previously it wasn’t. As a result, FSCS compensation may be claimed if an investor is advised to invest in P2P, that advice is shown to have been unsuitable and the adviser has failed (gone bust) in the meantime. The FSCS put out a news bulletin which seems to have caused some to believe that P2P may be covered by the FSCS; only if unsuitable advice was involved and only if the adviser was authorised to advise on P2P investment at the time. Since P2P platforms presently tend not to offer any form of advice, and are unlikely to be authorised to do so at this stage, this is likely to apply only in situations where a properly-authorised third-party adviser has recommended investment in P2P. The FSCS news bulletin explains it well."
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sl75
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Post by sl75 on May 27, 2019 15:46:44 GMT
... Finally invested another £10k in April!!!!! Sadly after that no more interest payments!!! April interest payments were significantly delayed for self-select investors too (due on 1 May, finally credited on 15 May, and took about a week more for it to hit external bank accounts for those who withdrew). Are you saying you've not even had this (delayed) payment?
Other replies have crossed over some of the other stuff else I was going to say... but having looked at your screenshot, there appear to be a links near the bottom for more details - "view account statement" and "investment breakdown". Don't those give some extra info?
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Post by brightspark on May 27, 2019 16:06:40 GMT
This is not like the Collateral platform collapse where lenders were effectively left with no website and FCA appointed Administrators had nothing with which to work initially. Because of concerns the Financial Conduct Authority has had Lendy under very close scrutiny for several months prior and has insisted that a backup mechanism is in place should the platform fail. That explains why the website remains live. Provided fraud has not occurred your investments should be in the system and will have value. It will take time (think months and years not weeks) to completely unlock that value and you probably will not recover your full investment but it is unlikely that your substantial savings are all gone. It helps too that you are in a big boat with a lot of other unfortunates as together they have a voice. For the moment investors just have to sit tight and wait for the dust to settle and the Administrators to get into their stride.
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cwah
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Post by cwah on May 27, 2019 16:12:11 GMT
This is not like the Collateral platform collapse where lenders were effectively left with no website and FCA appointed Administrators had nothing with which to work initially. Because of concerns the Financial Conduct Authority has had Lendy under very close scrutiny for several months prior and has insisted that a backup mechanism is in place should the platform fail. That explains why the website remains live. Provided fraud has not occurred your investments should be in the system and will have value. It will take time (think months and years not weeks) to completely unlock that value and you probably will not recover your full investment but it is unlikely that your substantial savings are all gone. It helps too that you are in a big boat with a lot of other unfortunates as together they have a voice. For the moment investors just have to sit tight and wait for the dust to settle and the Administrators to get into their stride. How do you know that it's unlikely that a substantial saving isn't gone? Have you seen the recovery progress on the other collapsed platform Collateral? Out of good loans with 100% recovery they have to date got about £700k. And the administrators fees are around £600k. So most of the recovered funds go to administrators. It's likely they'll recover around 10-20% of their initial amount. How can that not be substantial?
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cwah
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Post by cwah on May 27, 2019 16:14:59 GMT
And in case you don't know, the administrators spend years on the case. Their most junior associate charge from £300/h and directors £1000/h
That sort of rate should be illegal but that's how it works
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Post by robberbaron on May 27, 2019 16:44:25 GMT
In theory they would have known which loans were better than others and front-running the secondary market, they could have built a superior portfolio of loans to all self-select investors. After everything that happened why on Earth would you expect Lendy to have built a "superior portfolio" for LW? What was in it for them? At best I expect them to have just proportionally allocated the funds to all available loans, at worst to have shafted the absentee lenders with all the loans that wouldn't attract any capital otherwise.
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KoR_Wraith
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Post by KoR_Wraith on May 27, 2019 17:01:06 GMT
And in case you don't know, the administrators spend years on the case. Their most junior associate charge from £300/h and directors £1000/h That sort of rate should be illegal but that's how it works I don't know the ins-and-outs of Collateral but I imagine the administration was made much more difficult by the chaotic state in which control was handed over. Hopefully the fact that Lendy's website is still operational and the associated database(s) fully intact will lead to a better outcome...
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Garage246
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Post by Garage246 on May 27, 2019 17:01:11 GMT
Actually if you hold this within a SIPP you may well have access to compensation from the pensions ombudsman. I have looked into this previous as some of my Lendy holdings are in a SIPP. I was put in touch with a specialist pensions solicitor (I can pass on his details if you PM me). He has been most helpful and is confident because of some of the claims Lendy made, there are good grounds. He also has advised that it is worth asking what DD your SIPP administrator did to ensure that Lendy Wealth was a suitable investment vehicle for your pension. Given when Wealth came on the scene there were already signs of problems, again you might have a strong case.
I'd suggest speaking to this guy (I'm not related or anything to him). He alao works on a no win no fee basis at 15%.
Compensation is up to 80k so you are both well covered.
As I say PM me if you want his details.
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cwah
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Post by cwah on May 27, 2019 17:04:09 GMT
In theory they would have known which loans were better than others and front-running the secondary market, they could have built a superior portfolio of loans to all self-select investors. After everything that happened why on Earth would you expect Lendy to have built a "superior portfolio" for LW? What was in it for them? At best I expect them to have just proportionally allocated the funds to all available loans, at worst to have shafted the absentee lenders with all the loans that wouldn't attract any capital otherwise. Actually the worse would be if they used the majority of the funds to pay for their operational cost such as their £1.7 million staff cost + £200k directors salary and £133k directors pension. That wouldn't surprise me as Lendy wealth is a black box without any clue where the funds have been allocated
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Post by HMS Ardent on May 27, 2019 17:23:02 GMT
Actually if you hold this within a SIPP you may well have access to compensation from the pensions ombudsman. I have looked into this previous as some of my Lendy holdings are in a SIPP. I was put in touch with a specialist pensions solicitor (I can pass on his details if you PM me). He has been most helpful and is confident because of some of the claims Lendy made, there are good grounds. He also has advised that it is worth asking what DD your SIPP administrator did to ensure that Lendy Wealth was a suitable investment vehicle for your pension. Given when Wealth came on the scene there were already signs of problems, again you might have a strong case. I'd suggest speaking to this guy (I'm not related or anything to him). He alao works on a no win no fee basis at 15%. Compensation is up to 80k so you are both well covered. As I say PM me if you want his details. Sadly none of our Lendy investments are in a SIPP. But thanks for your help.
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hazellend
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Post by hazellend on May 27, 2019 17:28:02 GMT
This is not like the Collateral platform collapse where lenders were effectively left with no website and FCA appointed Administrators had nothing with which to work initially. Because of concerns the Financial Conduct Authority has had Lendy under very close scrutiny for several months prior and has insisted that a backup mechanism is in place should the platform fail. That explains why the website remains live. Provided fraud has not occurred your investments should be in the system and will have value. It will take time (think months and years not weeks) to completely unlock that value and you probably will not recover your full investment but it is unlikely that your substantial savings are all gone. It helps too that you are in a big boat with a lot of other unfortunates as together they have a voice. For the moment investors just have to sit tight and wait for the dust to settle and the Administrators to get into their stride. How do you know that it's unlikely that a substantial saving isn't gone? Have you seen the recovery progress on the other collapsed platform Collateral? Out of good loans with 100% recovery they have to date got about £700k. And the administrators fees are around £600k. So most of the recovered funds go to administrators. It's likely they'll recover around 10-20% of their initial amount. How can that not be substantial? The recovered funds and the expenses so far are not related. Even if total expenses were 4 million that would be 20% if the collateral loan book,
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cwah
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Post by cwah on May 27, 2019 17:36:44 GMT
How do you know that it's unlikely that a substantial saving isn't gone? Have you seen the recovery progress on the other collapsed platform Collateral? Out of good loans with 100% recovery they have to date got about £700k. And the administrators fees are around £600k. So most of the recovered funds go to administrators. It's likely they'll recover around 10-20% of their initial amount. How can that not be substantial? The recovered funds and the expenses so far are not related. Even if total expenses were 4 million that would be 20% if the collateral loan book, Let's hope the remaining loan book which is harder to recover does do well then. I had few defaulted loans which sold at 70-80% of loan price but with years of administrators fees ended up to 20-30% back. Just check some of FS recovery. Or even some of Lendy's!
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