FS Action Group! ????

Does FS have any assets? I wouldn't have expected much, so how would being a creditor help? Isn't there a risk that much of this activity pushes up costs for the administrator forcing a larger haircut on those loans that are recovered? (Rajinder Kumar has a fixed and floating charge on everything!)

I have sent to the administrators the template by email. I will not be able to attend any meeting so I hope this would not be an issue.
Are we going to create a group action like we did with Lendy ?
Thanks

here is what I wrote last month
Well looks like I was a tad early! As to my top 40 - this may possibly have been reasonably accurate - I will check (just back from Spain) but I think only 2 loans came good! 

As I have said before I am in the property business and I raised my concerns as I was worried about they way our funds were being "invested"; to the small cabal of people (if not sleepers and people talking their book) who have constantly criticised me and made negative personal comments all I can say is too bad if you have lost money as there was no need for this. I respect people who politely disagree with me but this was different
As to everybody else I am really sorry for any loss.

After having read the forum I only put limited funds into this outfit and about 2 years ago took out what I could and here are the reasons why

1) I checked the directors' history and found NO OVERALL EVIDENCE WHATSOEVER for a proven track record in business although granted one of the many companies they set-up may have done well

2) I found no evidence whatsoever for any success in property development - this is not the same as earning commission for finding high interest loans to fund projects personally I really don't like most sales reps.

3) The directors struck me (IMHO) as a bunch of chancers who knew nothing about P2P, property development and how to run any business in anything approching an ethical manner. Reading their CVs all I found was vacuous spin which lack substance  - or was a load of bovine coprolites as we don't say in Burley

4) The "communication" we received was based on superficial spin nonsense,  was frequently late, at best incomplete and at worst misleading - well so much for the new input of technical expertise!

5) These directors have clearly been "had" by numerous borrowers e.g. Whitehaven. I asked my broker  for commercial mortgage details last months and was told 2-4%! Clearly the banks turned down many of these borrowers for a very good reason but they sussed out FS , gave them a load of twaddle and they fell for it hook line and sinker - I would not expect such elementary failures by a teenage just starting in business! Clearly the business model for lending on property at these rates on short-term contracts  is just a non-starter given the vastly inaccurate valuations etc

6) The art loans fiasco was a total disgrace - how on earth FS managed to not even take the damn things into their possession simply defeats me - can you imagine if this shower were given this as a task on The Apprentice and had to tell Alan Sugar they failed to take out asset and ADDITIONAL security, failed to take possession and accepted a glorified IOU whilst half-cut over lunch and did not even know where the art was. It would make great TV but 95% of his comments would be censored! 

Well what happens now - I guess most of the lenders who aren't bothered about losing their assets will let the administrators sell them and walk away. Other investors who have been checked and found to have interesting histories will be laughing all the way to the bank.
I guess the administrators will simply liquidate the loan book as quickly as possible which I think is the best option - anybody want to buy 1  speedboat very cheaply as it may or may not have an engine in it (I don't believe there are 2 boats)!

I am really sorry for the pensioners etc who have lost money with this shower and I think the FCA have been totally and morally lacking but there again it is only a gravy train for failed politicians.

Don't forget -" organic growth - it's a process " to which I say the bigger the BS the lower the substance and we have had the mother of BS over this one!

Can somebody send me the FB link for the action group once it is done - I thank you.

Is there anywhere where FS actually apologise for this horlicks or is that a silly question?

I too would like to know the details of any action group and would wish to be involved.  

I have over 40 major investments with FS (all of which are long overdue or unredeemed) and have had serious misgivings about them for some time. Earlier this year I managed to contact a few other investors, all of whom were in the same position, with a view to attempting to bring collective pressure on the management to speed up (or initiate) the process of defaulting overdue loans and proceeding against the borrowers personally. I spoke to Mr Kumar who made various promises, none of which materialised. 

The following paragraph is taken from the website of Lendinvest, and I don't know how authoritative it is, but a case can certainly be made that FS has incorrectly administered the investments (and , I believe, misrepresented them) - if this were to bring the FSCS into the picture the whole situation would be different - but I am not optimistic. 
“In the event of LendInvest Funds Management Limited being unable to meet its liabilities, an investor may be entitled to compensation under the Financial Services Compensation Scheme. Currently, the maximum level of compensation an investor could receive from the Scheme for a claim against an investment firm is 100% of the first £50,000 per person.
The FSCS might apply if you lose money because your investments have not been administered correctly, or as a result of misrepresentation or fraud, and the authorised firm concerned has gone out of business and cannot pay compensation or return your investments or any cash held on your behalf."




 

"their fees may seem excessive.......", the reason being that the large companies employ people known as rewards analysts that actively compare salaries and benefits of other equivalent size companies. Hence, the outcome is that they all offer roughly the same fees and all charge roughly the same amount at invoicing, based upon company size and reputation. I know, as my son works at a large London accountancy firm.

Just a general question

Unless I have missed it there is , as yet, no information about the SM?

All we get is
"maintenance" my left buttock - administration more like!

I guess it will simply be shut so all dreams about making a killing on this one will go right out of the window as the loans will simply return to their original state?

For those people with a large spread then due to the high default rate  a sizeable tranche is going to take a hit (at least 30% of loans won't return 100% capital?)

Wonder how this is going to affect those of us who claim to make about 20% return...stuffed?
Or maybe the administrators will let it continue once they turn FS around - duck chaps - flying pigs at 2 o'clock!