11025
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Post by 11025 on Oct 23, 2019 10:13:27 GMT
I had a case that was decided in my favour back in March regarding the Powerboat loan and was waiting for the Ombudsman to take action but they had a backlog , I had warned the FO repeatedly this was likely to happen , here is their reply to an email from me dated 30/9 : The reason I’ve not been in touch is exactly that – there is no update our service can give you at this stage. As far as our service is aware – Fundingsecure are still trading unlike Lendy, their platform update suggests they won’t be stopping anytime soon.
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aj
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Post by aj on Oct 23, 2019 10:18:49 GMT
My primary concern is how the easier loans pay for the recovery costs of the older loans, while obviously hoping we all get as much back as we can.... Obviously a loan that pays back in the next month or two should shoulder lower administrators costs than one that drags out over years. I am interested to know how the administrators will approach FS's ongoing legal cases. I have a loan where a valuer is being pursued for a bad valuation which I believe is worthwhile, but also I have a loan in Lytham St Annes where FS do not actually hold a charge over the land; I think legal fees may exceed the site value here. As for the power boats, to achieve the best recovery results the administrators should write these loans off today.
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Post by ron on Oct 23, 2019 10:19:31 GMT
As I mentioned earlier, a bank withdrawal to me was processed swiftly last night. However, this morning withdrawals are currently unavailable, although I can still see my deposited balance (obviously wish I'd withdrawn more last night!). Definitely interesting times ahead. I would imagine quite a few of the more recent loans could be managed to completion with minimal fuss, but obviously the older book is challenging to say the least. My primary concern is how the easier loans pay for the recovery costs of the older loans, while obviously hoping we all get as much back as we can.... Exactly, the capital and interest on the tower block was going to be the only reason I could claim that I "only" lost ten percent of my money with FS, but if this money is now used to pay for what is going to be a very challenging and expensive recovery (wild goose chase, but profitable for admin?) of the old loan book then I am toast. I'm quite ignorant about the workings of an administration. It would be very useful if someone more knowledgeable could help understand. - What will change from the investors' perspective with FS under administration? - Normally, recoveries from the assets underlying a specific loan would go to the lenders, net of any directly associated expenses. Is this any different under administration? - Will lenders receive the proceeds from the loans they have when the assets are realised, or will everyone have to wait for the whole loan book to be run down? - What will happen to cases such as the art loans, where expensive legal proceedings are ongoing? Will they be dropped?
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r1200gs
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Post by r1200gs on Oct 23, 2019 10:23:05 GMT
I had a case that was decided in my favour back in March regarding the Powerboat loan and was waiting for the Ombudsman to take action but they had a backlog , I had warned the FO repeatedly this was likely to happen , here is their reply to an email from me dated 30/9 : The reason I’ve not been in touch is exactly that – there is no update our service can give you at this stage. As far as our service is aware – Fundingsecure are still trading unlike Lendy, their platform update suggests they won’t be stopping anytime soon.
This is why I did not forward my unanswered FS complaints to the FO, it was perfectly obvious this was going to happen long before the FO took any action.
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Garage246
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Post by Garage246 on Oct 23, 2019 10:23:37 GMT
Turning to the administration and given the lessons of the administration of Lendy with RSM, I think it is important to (1) define the nature of investors relationship with FS - are FS agents and the investors creditors of individual loans, or are investors creditors of FS, (2) regardless of (1) get investor representation on a creditors' committee following an initial creditors' meeting. The Lendy Action Group has been a good example on how investors can get a voice and some degree of control back. In that case RSM allowed investors the ability to sit on the Creditors' Committee even though for most of the later loans, the legal advice was that Lendy was an agent and investors not creditors directly of Lendy. Such an outcome would help us keep a lid on costs and ensure that value is maximised for us all.
With this in mind, I have written to the administrators this morning to ask for an initial creditors' meeting to be called and for an invitation to that meeting. I would urge and suggest if you feel the same, to also make contact and add weight to this.
A creditors' committee can control the budget costs of the administrators and the strategy that they use to realise disposal of assets. In short we would some control to ensure that we are not fleeced by the administrators for costs as per Collateral
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11025
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Post by 11025 on Oct 23, 2019 10:25:20 GMT
I had a case that was decided in my favour back in March regarding the Powerboat loan and was waiting for the Ombudsman to take action but they had a backlog , I had warned the FO repeatedly this was likely to happen , here is their reply to an email from me dated 30/9 : The reason I’ve not been in touch is exactly that – there is no update our service can give you at this stage. As far as our service is aware – Fundingsecure are still trading unlike Lendy, their platform update suggests they won’t be stopping anytime soon.
This is why I did not forward my unanswered FS complaints to the FO, it was perfectly obvious this was going to happen long before the FO took any action. This complaint started with FS in may 2018 and was passed to the FO in september 2018 . Just goes to show how out of touch the FCA and the FO are with what is going on here .
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pip
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Post by pip on Oct 23, 2019 10:50:08 GMT
Not surprising at all, no way the company could go on as it was. As I have said for a long time best hope of any decent outcome for investors is playing the 'I am an innocent naive investor card, I trusted the FCA and was let down'. Chances of any other money being recovered in my opinion are slim at best. Usually once the administrators get involved, firstly most returns go to them and secondly things turn out to be a lot worse people knew.
It's another huge blow to the confidence of investors in the entire sector, whats the point in getting 7% 90% of the time and losing 100% of your money the rest.
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Mousey
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Post by Mousey on Oct 23, 2019 11:03:47 GMT
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rocky1
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Post by rocky1 on Oct 23, 2019 11:55:04 GMT
sounds the same as the LY story. a lot of these loans are already in the hands of receivers/admins so how do we stand on these and CH block has been sold or so we have been told.FS just put their coats on and walked out. they have been building to this for months i suppose no losses to FS by the time its all over.
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Post by df on Oct 23, 2019 11:57:03 GMT
I've started selling my pawn loan parts last week... I was expecting this to happen at some point soon, so no surprise for me.
On the positive note - at least now I know where I stand (I will break even with FS if I get 54% of my current value).
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criston
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Post by criston on Oct 23, 2019 12:02:47 GMT
How do underwriters holdings figure in this situation?
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copacetic
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Post by copacetic on Oct 23, 2019 12:05:18 GMT
P2P really is a disaster of a place to invest money.
I guess this also means the Barnoldswick 1079396222 @20% LTV which FS didn't bother their backsides to register the charge on and which they said they'd repay from their own funds is now most likely a total loss too.
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Mousey
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Post by Mousey on Oct 23, 2019 12:09:01 GMT
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Mucho P2P
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Post by Mucho P2P on Oct 23, 2019 12:14:16 GMT
How do underwriters holdings figure in this situation? They wont feature, as they just underwrite the loan till filled at initial offering. Unless of course someone knows something that I do not and FS operated the underwriting in a different manner, in that case, please let me know.
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Post by mrclondon on Oct 23, 2019 12:19:41 GMT
Sad and frustrated is probably a fair reflection of my thoughts today.
p2p could have been, should have been, far more than the mess of failure it is today. The warning signs were there mid 2017, before the recent high profile failures started. I really thought in the early days of p2p we were on the cusp of something revolutionary ... harnessing the collective knowledge and experience of those with money to invest (a proxy for 'successful' people, not a perfect correlation but close) to enable others to become 'successful' by undertaking 'projects' financed by us.
Just like dragons den most projects would fail to pass the whiff test, and would be dropped, a virtuous circle. Instead, platforms ignored the concerns of those able to apply their knowlege and experience and spot those projects that had a low probability of success, and allowed the ready supply of funds to fill the loans. Some platforms have tolerated the interventions on this forum, but ultimately ignored them, others have fought (and continue to fight) against having potential dirty linen aired in public.
p2p platforms are essentially small tech startups, staffed by people with varying amounts of real life experience in the asset classes they are offering loans against. The governance of these platforms has been weak, with few outside the big players employing non-executive directors whose role it is to support, mentor and when neccessary challenge the executive team.
If this reads like an obituary for p2p, then that is perhaps a fair inference. I have deliberately not referenced FS here, today's events are a mere sympton of a wider malaise.
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