locutus
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Post by locutus on Nov 29, 2019 22:11:39 GMT
Does this mean that the administrators are enforcing lendy's Ts & Cs change that most of us rejected? No it means the administrators are attempting to enforce fees owed to Lendy Ltd that were allegedly written directly into the loan security documents/debentures by Lendy when the loans were originated. Essentially the loan/borrower agreements have apparently superseded the platform terms. "The security documents set out an order of priority of payment"This has nothing to do with the platform terms and conditions or any variation of them. The real relevant parts of the terms are: "9.1 The Loan Contract governs the terms of repayment of principal and payment of interest by the borrower."
"9.11 Details of the fees which Lendy charges borrowers are set out in the relevant Loan Contract, and these are, typically, an arrangement fee, an exit fee, and a loan monitoring fee."
Investors have never seen these security documents so won't have had any idea what fees would be contractually due to Lendy Ltd or indeed what their priority would be in the waterfall in this type of scenario although I do believe that one loan agreement may be out there in the public domain somewhere due to a well-publicised court battle to give you an idea. From the way I'm reading it the 3% "fixed" SLA will only be enforced if RSM run out of money from the Lendy Ltd pot to fund the administration having burnt through all the waterfall distributions cash.
Are the CC going to legally challenge this as it is clearly unethical and to me seems illegal. Do we need to chip in for some legal fees as per FS?
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hazellend
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Post by hazellend on Nov 29, 2019 22:49:40 GMT
“Loan monitoring fee”, haha lendy are hilarious.
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sb
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Post by sb on Nov 29, 2019 23:57:33 GMT
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Godanubis
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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 Nov 30, 2019 2:08:31 GMT
Is there no scope to challenge under “unfair contract “terms ?
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ian
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Post by ian on Nov 30, 2019 5:28:53 GMT
This is verging on being corrupt we must challenge the FCA and attempt to get some political intervention.
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rocky1
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Post by rocky1 on Nov 30, 2019 7:00:32 GMT
Liam/lendy changed the T@Cs when he knew well in advance which way this was all going and continued taking lenders funds.even before lendy wealth was introduced.the FCA/FOS should stand up here and declare these null and void and should be asking some serious questions of Liam/lendys escape route with millions of our money.the administrators themselves know this is wrong but their hands are tied by these T@Cs. massive fees and default interest for failure must be stopped by the FCA/FOS across the whole of this shady P2P sector and platforms activities brought to book.many of us did not accept the new T@Cs and did not lend and only withdrew what we could even before these changes but here we are.
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Post by p2plender on Nov 30, 2019 7:17:45 GMT
No wonder crooks have turned to the internet rather than robbing banks!
How on earth LB has not had his collar felt yet is quite remarkable. He appears to have done better than Bernie Madoff here and all without a sniff of porridge. The story of legends!
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mary
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Post by mary on Nov 30, 2019 7:45:05 GMT
Taking this one step further - if Lendy get to keep the lions share of the waterfall based on even say £50m recovery of the £165m loan book. There will still be £25m+ left over once the dust settles and then that would be set for distribution to the shareholders of lendy. Will Liam B be looking at a £20m payday? That’s what their legal advice of saying it seems That was my reading of it. Hence, it seems that we should all file a Proof of Debt against Lendy for our losses, as suggested by the Administrators. This way, at best, we get some additional small return, but also reduce the payout to LB. “ To the extent that any investor suffers a shortfall following the Distribution Waterfall, those investors will be at liberty to file a proof of debt against Lendy, fully setting out their claim for the Administrators' consideration. The investor's rights will not be affected by filing a proof of debt.”
I would be grateful for any suggestions on how to frame such a claim.
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quidco
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Post by quidco on Nov 30, 2019 8:35:49 GMT
Taking this one step further - if Lendy get to keep the lions share of the waterfall based on even say £50m recovery of the £165m loan book. There will still be £25m+ left over once the dust settles and then that would be set for distribution to the shareholders of lendy. Will Liam B be looking at a £20m payday? That’s what their legal advice of saying it seems That was my reading of it. Hence, it seems that we should all file a Proof of Debt against Lendy for our losses, as suggested by the Administrators. This way, at best, we get some additional small return, but also reduce the payout to LB. “ To the extent that any investor suffers a shortfall following the Distribution Waterfall, those investors will be at liberty to file a proof of debt against Lendy, fully setting out their claim for the Administrators' consideration. The investor's rights will not be affected by filing a proof of debt.”
I would be grateful for any suggestions on how to frame such a claim. I believe this is the form. I've assumed we have plenty of time to do this as they won't distirbute funds to the creditors until the end of the admninstration?
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sb
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Post by sb on Nov 30, 2019 9:03:54 GMT
Is there no scope to challenge under “unfair contract “terms ? I haven't found any info that p2p lending contracts are excluded. If you check this link www.fca.org.uk/firms/unfair-contract-terms/library you will find that FCA challenged contracts of various investment companies, including share dealing, spread betting and asset managers. I think it is worth to try this route. It is free and the worst what can happen is FCA saying Lendy T&Cs are not in their scope.
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Monetus
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Post by Monetus on Nov 30, 2019 9:18:59 GMT
Worth a go however I wouldn’t expect much from the FCA (who have apparently already reviewed the waterfall distributions and communication that you received yesterday). Rather than challenging their terms the FCA instead granted Lendy full authorisation in June 2019 . Liam Brooke, CEO of Lendy Ltd, said at the time: “We’re very pleased to have been given full authorisation by the FCA. It has been a long and sometimes challenging journey, which has involved a detailed review of our processes and policies and has helped us mature into a stronger and more robust business. Oh and then there was also the FCA ignoring the known cases of mis-selling of course... www.thetimes.co.uk/article/watchdog-cleared-lendy-despite-loans-mis-selling-qkzfkdqjn“Protecting consumers” as always... |
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Monetus
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Post by Monetus on Nov 30, 2019 9:26:01 GMT
That was my reading of it. Hence, it seems that we should all file a Proof of Debt against Lendy for our losses, as suggested by the Administrators. This way, at best, we get some additional small return, but also reduce the payout to LB. “ To the extent that any investor suffers a shortfall following the Distribution Waterfall, those investors will be at liberty to file a proof of debt against Lendy, fully setting out their claim for the Administrators' consideration. The investor's rights will not be affected by filing a proof of debt.”
I would be grateful for any suggestions on how to frame such a claim. I believe this is the form. I've assumed we have plenty of time to do this as they won't distirbute funds to the creditors until the end of the admninstration?
Yes no payment would be made until the very end of the admin and you’d also need to be able to quantify the true value of your claim so it’s too early to know the full extent of losses you may have suffered.
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Post by walkmill on Nov 30, 2019 9:32:11 GMT
Should we be hiring a lawyer to advise us per the FSAG approach?
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bugs4me
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Post by bugs4me on Nov 30, 2019 9:57:58 GMT
I hope LAG and the Credit committee are having a good look at what options are available to challenge these proposals as it not looking good! Very robust discussions have been happening for several weeks since we were made aware of this matter and the current Committee members are all exploring the available options. Can’t say much more than that at this stage. Monetus - I wish you and your colleague Committee members all the very best with your efforts and certainly folks that are invested in the LY LB fraud fiasco are grateful for your efforts.
It's ironic that the T's & C's were changed 11/07/18 para 13.3 - 'In the event of a shortfall in the amounts available for repayment of the Loan, the available proceeds will be paid in the order set out in the Loan Agreement, as follows: first, payment of any unpaid fees, costs and expenses of the Agent under the Finance Documents; second, payment of any accrued interest, fee or commission due but unpaid under the Loan Agreement; third, payment of any principal due but unpaid under the Loan Agreement; and fourth, payment of any other sum due but unpaid under the Finance Documents. However, Lendy may, and Saving Stream Security Holding may, vary this order in their discretion'
At the same time - one Andrew Bailey was explaining the reasoning behind granting LY full authorisation justification being that not to do so - '....“This could have led to increased consumer harm....” - source
Whatever the Administrators may feel, nonetheless they will play it strictly by the book and that includes extracting everything due to themselves. Lenders/Investors are really just an inconvenience and I feel we are looking at the very best of a return of a few pennies in the pound when this is eventually finalised in the distant future. I doubt if there will be any recompense from the FCA who from my limited dealings with them live very much in a bubble.
Again though, my thanks to the Committee for their efforts and I sincerely hope my assessment is proved incorrect.
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Post by brightspark on Nov 30, 2019 10:15:17 GMT
Could help be sought from the Competition and Marketing Authority? Each Lender had via the terms and conditions (t & c's) a contract with the loan platform. The platform had via loan agreements, contracts with borrowers of every loan. The platform did not reveal to lenders the terms of loan agreements. Conditions inserted in the loan agreements are extremely detrimental to the interests of lenders and unjustifiably benefit hugely the interests of the platform. The above arrangement meant that consumers are being ripped off. It is effectively a swindle.
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