rocky1
Member of DD Central
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Post by rocky1 on Jan 21, 2020 11:37:11 GMT
isnt this the reason LB changed the terms to get hold of as much as he could from model 2 loans syphoned over to LY coffers.lendy entitelement and fees and default interest. he dont want much does he.if he had monitored this loan book as much as his changing T@Cs we might not be in all this mess.
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Jan 21, 2020 13:23:10 GMT
Let’s just stick all the money recovered in a big (I hope) bucket. 1 admin get their fees 2 Lenders get all their capital back 3 Lendy get their fees 4 interest paid on pro rata basis to all lenders at 10% 5 Any remainder paid to Lendy 6 unsecured creditors get balance pro rata That should be reasonable outcome rather than fighting over the bill like a group night out in restaurant  Let Lendy members vote on outcome on 1 vote £ invested STV for other solutions. |
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quidco
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Post by quidco on Jan 21, 2020 13:34:47 GMT
Rather than P2P lending this appears to be a redistribution of wealth platform
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quidco
Member of DD Central
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Post by quidco on Jan 21, 2020 15:49:59 GMT
isnt this the reason LB changed the terms to get hold of as much as he could from model 2 loans syphoned over to LY coffers.lendy entitelement and fees and default interest. he dont want much does he.if he had monitored this loan book as much as his changing T@Cs we might not be in all this mess. How can Lendy (Administrators) charge interest on money someone else lent and then when the borrower defaults on the loan, and recovery falls short, how can they take "their" interest from the money that was lent? That to me is just theft.
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Post by default on Jan 21, 2020 15:52:46 GMT
if you have invested in model 1 loans, i suspect that you can kiss your money goodbye irrespective of the outcome of any legal action over model 2 loans.
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Post by paul123 on Jan 25, 2020 6:32:40 GMT
From Lisa (with permission):
***Update 24/1/20***
We're getting close! As of today we have selected a solicitor and we are in process of reviewing QC for legal review on strategy. We will share as much as possible on strategy when counsel agrees.
I expect we will begin the capital raise the end of next week. As noted previously, we are asking each investor to commit £1 for each £1000 you've invested. If everyone participates we'd raise nearly £150k but we realize that result is unlikely. Our actual target is between £25-75k. Due to the complex nature of the case and Lendy's failure to put our interest first, we are hopeful that we can reach this goal which will allow us to take all needed action.
Please note all funds will be held in a single escrow account and released only once we receive value in kind from the lawyers.
Thank you for your patience. We will publish the link for the CrowdJustice fund raising site soon.
Have a great weekend.
Some follow up replies from Lisa: - There is no minimum to contribute and yes, if we fail to raise £25k all funds will be returned. If we exceed £25k then we will proceed.
- I hate to say we can't release details but we will focus on things like:
A. Reversing the waterfall
B. Possibly challenging the IP/conflict admin process for SSSH
C. Causing RSM to remove all conflicted parties from the process
D. Getting complete status as creditors
E. Anything else possible.
What we can do is based on how much money we can raise.
- The estimate on the money stripped using Lendy's last waterfall is estimated at £20-30m of our money. That's just the beginning.
- What’s mind blowing is that unless we are classed as creditors and challenge this, it's possible Lendy could have lots of money and L*** could literally be entitled to it.
- Back in septemver RSM expected to recover +/- 80m of 152m invested. The waterfall could reduce that to 50m. It's real money
- We won't do anything we don't feel has a likelihood of a successful outcome
- RSM is holding the waterfall proceeds in a separate account in anticipation of a challenge. Portions of M2 recoveries for investors will be returned but keep in mind, the waterfall is designed to strip huge amounts making the recoveries nearly 0 if we don't challenge it.
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Post by gramsky on Jan 25, 2020 9:59:52 GMT
From Lisa (with permission):
***Update 24/1/20***
We're getting close! As of today we have selected a solicitor and we are in process of reviewing QC for legal review on strategy. We will share as much as possible on strategy when counsel agrees.
I expect we will begin the capital raise the end of next week. As noted previously, we are asking each investor to commit £1 for each £1000 you've invested. If everyone participates we'd raise nearly £150k but we realize that result is unlikely. Our actual target is between £25-75k. Due to the complex nature of the case and Lendy's failure to put our interest first, we are hopeful that we can reach this goal which will allow us to take all needed action.
Please note all funds will be held in a single escrow account and released only once we receive value in kind from the lawyers.
Thank you for your patience. We will publish the link for the CrowdJustice fund raising site soon.
Have a great weekend.
Some follow up replies from Lisa: - There is no minimum to contribute and yes, if we fail to raise £25k all funds will be returned. If we exceed £25k then we will proceed.
- I hate to say we can't release details but we will focus on things like:
A. Reversing the waterfall
B. Possibly challenging the IP/conflict admin process for SSSH
C. Causing RSM to remove all conflicted parties from the process
D. Getting complete status as creditors
E. Anything else possible.
What we can do is based on how much money we can raise.
- The estimate on the money stripped using Lendy's last waterfall is estimated at £20-30m of our money. That's just the beginning.
- What’s mind blowing is that unless we are classed as creditors and challenge this, it's possible Lendy could have lots of money and L*** could literally be entitled to it.
- Back in septemver RSM expected to recover +/- 80m of 152m invested. The waterfall could reduce that to 50m. It's real money
- We won't do anything we don't feel has a likelihood of a successful outcome
- RSM is holding the waterfall proceeds in a separate account in anticipation of a challenge. Portions of M2 recoveries for investors will be returned but keep in mind, the waterfall is designed to strip huge amounts making the recoveries nearly 0 if we don't challenge it.
Bring it on! I will be watching this closely.
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joe91
Member of DD Central
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Post by joe91 on Jan 25, 2020 10:46:42 GMT
if you have invested in model 1 loans, i suspect that you can kiss your money goodbye irrespective of the outcome of any legal action over model 2 loans. What information do you base this on?
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quidco
Member of DD Central
Posts: 295
Likes: 361
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Post by quidco on Jan 25, 2020 11:27:55 GMT
We will of course be paying for both sides of the legal action irrespective of who wins as the administrators certainly won't be using their own money to defend the action. Welcome to P2P world.
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Post by gramsky on Jan 25, 2020 11:42:34 GMT
We will of course be paying for both sides of the legal action irrespective of who wins as the administrators certainly won't be using their own money to defend the action. Welcome to P2P world. All the more reason for every investor to contribute in their own interests. I think £1/£1000 is too low. I only have £4.5k invested, but I will be donating a lot more than £5.
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Post by samford71 on Jan 25, 2020 14:02:24 GMT
I have a nailed on 40% recovery from offsetting interest against irrecoverable loans in the tax years 17/18 through 19/20. I've already claimed back 17/18, and 18/19 will go in during the next day or so. So realistically, for me, the only value in launching a legal challenge is if the recovery can be improved substantially above 40%. I know of quite a few others who are in the same position.
The original quantum of recovery was expected to average around 50-60% and, probably, less for those loans where enforcement action has already been taken to recover some amount of principal. This was pre-costs and those are always underestimated. So it's not clear to me that, even if the current interpretation of the waterfall was thrown out and a more sensible one enforced, that the actual recovery would exceed 40-50% as an average. Now these are averages so it might be the case that some have got better quality portfolios than the rather random spread of small bits of toxic waste I have left.
Nonetheless, the quickest and most guaranteed way to recover 20%/40/45% of the your principal is to use tax offset.
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neeps
Posts: 81
Likes: 120
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Post by neeps on Jan 25, 2020 16:47:58 GMT
I have a nailed on 40% recovery from offsetting interest against irrecoverable loans in the tax years 17/18 through 19/20. I've already claimed back 17/18, and 18/19 will go in during the next day or so. So realistically, for me, the only value in launching a legal challenge is if the recovery can be improved substantially above 40%. I know of quite a few others who are in the same position.
The original quantum of recovery was expected to average around 50-60% and, probably, less for those loans where enforcement action has already been taken to recover some amount of principal. This was pre-costs and those are always underestimated. So it's not clear to me that, even if the current interpretation of the waterfall was thrown out and a more sensible one enforced, that the actual recovery would exceed 40-50% as an average. Now these are averages so it might be the case that some have got better quality portfolios than the rather random spread of small bits of toxic waste I have left.
Nonetheless, the quickest and most guaranteed way to recover 20%/40/45% of the your principal is to use tax offset.
As the whole Lendy/Collateral debacle has turned me into a non-taxpayer I'll certainly be in as I can't offset anything!
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quidco
Member of DD Central
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Post by quidco on Jan 25, 2020 17:34:19 GMT
I have a nailed on 40% recovery from offsetting interest against irrecoverable loans in the tax years 17/18 through 19/20. I've already claimed back 17/18, and 18/19 will go in during the next day or so. So realistically, for me, the only value in launching a legal challenge is if the recovery can be improved substantially above 40%. I know of quite a few others who are in the same position.
The original quantum of recovery was expected to average around 50-60% and, probably, less for those loans where enforcement action has already been taken to recover some amount of principal. This was pre-costs and those are always underestimated. So it's not clear to me that, even if the current interpretation of the waterfall was thrown out and a more sensible one enforced, that the actual recovery would exceed 40-50% as an average. Now these are averages so it might be the case that some have got better quality portfolios than the rather random spread of small bits of toxic waste I have left.
Nonetheless, the quickest and most guaranteed way to recover 20%/40/45% of the your principal is to use tax offset.
There must have been very little interest to offset against in 19/20, I think Lendy stopped paying interest around May 19.
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Post by bracknellboy on Jan 25, 2020 19:15:38 GMT
while that might be the case, you can offset across net interest from all other P2P qualifying investments, regardless of platform.
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sam i am
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Post by sam i am on Jan 25, 2020 20:22:39 GMT
And any capital recovery from loans that have been previously offset then counts as income. And future losses can be offset against this recovered capital.
So the question is, will the cumulative recovered capital ever exceed the cumulative offset? Which I believe is the point samford71 is making.
(Noting with a nod to bracknellboy that this is the sum across all P2P platforms in which you are invested and not just Lendy in isolation.)
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