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Post by carol167 on Feb 1, 2020 21:14:27 GMT
Hi everyone if we are feeling misled and the sort! Instead of just complaining on this forum, can't we all get in contact with the FCA to see if this can be looked in to, and fast? First step would be to complain directly to LW.
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Post by gravitykillz on Feb 1, 2020 21:38:11 GMT
I'm surprised no one has left a google review as well. Google reviews are pretty powerful and get more attention than this forum.
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benaj
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Post by benaj on Feb 1, 2020 21:58:56 GMT
I'm struggling to understand what people are experiencing here. I can annualise my annual LW monthly from Jan as 4.1% 2.1% - is this the issue? Seems so. So where will the rest be coming from? In short, LW notified all lenders about the changes they were about to bring in Jan 2020 prior Dec 2019, predicted some of the investors would no longer happy with the net yield and gave investors to "Cash in" before Jan 2020. The changes were too many and unexpected by existing investors. p2pindependentforum.com/post/339318The Shield's Contingency Fund needs to be enhanced / topped up immediately, although r00lish67 warned us about the Shield back in July '19, I was one of them hoping the Contingency Fund would have been improved by December, it just didn't happen. p2pindependentforum.com/post/365999 LW are increasing Shield contributions by adjusting interest payment for the first 6 months, hopefully, this will bring Shield's Contingency Fund and interest payment back to target. p2pindependentforum.com/post/366472The rate of 1.1% Interest Rate Adjustment wouldn't be enough to enhance Shield quickly. Emergency measures are being taken, hence we (existing lenders) are feeling the effect of the Interest Rate Margin for the short period (hopefully).
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Post by Undecided on Feb 1, 2020 22:48:14 GMT
Hi everyone if we are feeling misled and the sort! Instead of just complaining on this forum, can't we all get in contact with the FCA to see if this can be looked in to, and fast? First step would be to complain directly to LW.
I’ve complained to LW, they are not budging, so I’m going to complain to the ombudsman.
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zlb
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Post by zlb on Feb 1, 2020 23:29:57 GMT
I'm struggling to understand what people are experiencing here. I can annualise my annual LW monthly from Jan as 4.1% 2.1% - is this the issue? Seems so. So where will the rest be coming from? In short, LW notified all lenders about the changes they were about to bring in Jan 2020 prior Dec 2019, predicted some of the investors would no longer happy with the net yield and gave investors to "Cash in" before Jan 2020. The changes were too many and unexpected by existing investors. p2pindependentforum.com/post/339318The Shield's Contingency Fund needs to be enhanced / topped up immediately, although r00lish67 warned us about the Shield back in July '19, I was one of them hoping the Contingency Fund would have been improved by December, it just didn't happen. p2pindependentforum.com/post/365999 LW are increasing Shield contributions by adjusting interest payment for the first 6 months, hopefully, this will bring Shield's Contingency Fund and interest payment back to target. p2pindependentforum.com/post/366472The rate of 1.1% Interest Rate Adjustment wouldn't be enough to enhance Shield quickly. Emergency measures are being taken, hence we (existing lenders) are feeling the effect of the Interest Rate Margin for the short period (hopefully). thanks, yes I'm aware of these points, but why advertise a variable rate which has actually varied (which they said it would do in order to maintain the shield), eg 3.8% then 4% etc, when the real variable rate is actually 2%, for weeks where they said it was 4%? I've been asking a related question along the lines of, I expected there to be much more variety in this variable rate (to protect the shield) but the rate only dipped a little, and now it's back to 4% and has been for some weeks. My concern was that they weren't protecting the shield after advertising that they were. So, I don't understand, who exactly is going to get the advertised rates?
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Post by 673639neil on Feb 2, 2020 1:06:00 GMT
Hi everyone if we are feeling misled and the sort! Instead of just complaining on this forum, can't we all get in contact with the FCA to see if this can be looked in to, and fast? First step would be to complain directly to LW.
I have complained to LW, also been in contact with financial ombudsman but was told need to give LW eight to reply, if no final letter is received by then, is the only time they will get involved
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Post by Undecided on Feb 2, 2020 8:41:58 GMT
LW sent me the final letter about a week after my official complaint but I had been discussing the issue with them for a couple of weeks before that.
I was was intending to complain to the ombudsman next but seeing as this is effectively misleading advertising that affects all lenders perhaps the FCA would be more relevant?
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iRobot
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Post by iRobot on Feb 2, 2020 9:41:24 GMT
LW sent me the final letter about a week after my official complaint but I had been discussing the issue with them for a couple of weeks before that. I was was intending to complain to the ombudsman next but seeing as this is effectively misleading advertising that affects all lenders perhaps the FCA would be more relevant? This is just my understanding and is intended to perhaps prompt you to investigate further and/or elicit comments from those with greater (perhaps first-hand) knowledge: 1) The FOS are who you approach if you believe there to be a case for recompense to be awarded from action (or inaction) by a platform which resulted in a financial loss. (And if the loss can be quantified, so much the better.) 2) The FCA is who you approach if you believe a platform is acting contrary to the official regulations applicable to that platform. My 'top-of-the-head' thinking would be: # without delay, raise a query with the FCA to as to get a case number raised and start the process running, you can supplement your case in the coming days / weeks with further information as you discover it (or are requested for it): copies of general LW emails advising of the change, correspondence between yourself and LW on the matter, etc # forward your official complaint with LW to the FOS now that LW's final letter has been received, include the reference to the FCA case. I'd think it likely the FOS will place their case on hold pending the FCA decision as that would materially affect their own decision but, again, it gets the process up and running. If the FCA find against LW, it will like result in little more than a slap on the wrist. Should any financial penalty be levied against LW, I suspect it would find its' way into the FCA's coffers to offset costs of running the investigation. The upside on an FCA finding in your favour is that the FOS will be more inclined to uphold your complaint; consequently, I would focus at least as much effort on the FCA case as that with the FOS. Just my thoughts and more than happy for other more knowledgeable / experienced to correct any misunderstandings.
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IFISAcava
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Post by IFISAcava on Feb 2, 2020 9:58:00 GMT
I'm surprised no one has left a google review as well. Google reviews are pretty powerful and get more attention than this forum. I think we all want to sell out before encouraging everyone else to sell too! As it is it is currently taking much longer to sell - indeed, one wonders how the queue works between allocating new investors money to old loans v new loans. Not sure if/where that is specified, or whether it is discretionary (and hence we may not be able to sell even at the huge 5% discount).
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Post by carol167 on Feb 2, 2020 10:02:23 GMT
I'm surprised no one has left a google review as well. Google reviews are pretty powerful and get more attention than this forum. I think we all want to sell out before encouraging everyone else to sell too! As it is it is currently taking much longer to sell - indeed, one wonders how the queue works between allocating new investors money to old loans v new loans. Not sure if/where that is specified, or whether it is discretionary (and hence we may not be able to sell even at the huge 5% discount).
Lending Works are really going to need to step in and do something in the short term before this gets way out of hand. - you have some seriously angry investors! Matthew
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Post by jono75 on Feb 2, 2020 11:06:55 GMT
I'm regretting investing (even a small amount like mine is hard earned cash) reading all this, and I'm not being hit like most on here being new. What it does do to new people like me is add doubt. I've set my settings to manual so I an decide this week what to do. I'm erring on the side of setting to withdraw weekly until the fee + shortfall (still don't know why i have one as it's still 5.4%) doesn't put me in the red then cash in what I can.
I'll have to wait for the remaining 10% that has been in arrears since day one to default one day in the future, not sure when though as one is 7 months late already and says repaying on the loan book!
Where is the official statement from LW on all this, going dark is the worst thing they can do. It shouldn't need second guessing and a degree in mathematics to work out the figures.
I don't seem to have a January statement, have a December one in the my statements section but it's not there, is there somewhere else I should look, not had an email.
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Ukmikk
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Post by Ukmikk on Feb 2, 2020 11:41:28 GMT
Hi keystoneLending Works staff do not hold investment accounts or take out loans through the platform. [/quote] And now we can see why.
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Post by popeye on Feb 2, 2020 11:41:40 GMT
Hi
I keep an eye on these forums as they have given an early warning of issues before the become widely known or reported. Bad loans at Lendy and slow sale times at Funding Circle are two examples which came to my attention this way. I'm therefore hugely grateful to all who contribute.
Lending Works had previously had pretty unanimous positive feedback until these changes. Even then, it's taken me far too long to research and try to understand the implications. I had failed to appreciate :
1. that interest income on existing loans would fall so severely immediately. In fact, I hadn't understood that interest rates on my existing loans would fall at all. I now understand that the total return should ultimately meet the target return but that doesn't give me much comfort.
2. the scale of the interest rate adjustment being applied to sales. I had thought that, as my existing loans had a higher rate than current rates, I wouldn't be affected.
Frankly, this is quite a surprise and my trust has gone and, as a result, I'm out. I've taken a hit of several hundred pounds but know that I'm back in control of my money.
More widely, I'm monitoring my other P2P investments much more closely at present and winding a number down gradually and some aggressively. For example, I'm now out of Zopa and winding down Funding Circle because the rate of return isn't sufficient to justify the risk.
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Post by EJi on Feb 2, 2020 11:45:13 GMT
It looks like LW are just going to wait this out and hope it goes away. Matthew has gone quiet and is only answering selected questions (something he's probably been advised to do). I've no doubt the LW staff are reading all this. How will these threads look to potential investors?
I won't be letting this go. I'm still waiting for my final reply to my complaint.
They should do the right thing and allow those who complain to exit on the December terms.
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Ukmikk
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Post by Ukmikk on Feb 2, 2020 13:28:36 GMT
It looks like LW are just going to wait this out and hope it goes away. Matthew has gone quiet and is only answering selected questions (something he's probably been advised to do). I've no doubt the LW staff are reading all this. How will these threads look to potential investors?
I won't be letting this go. I'm still waiting for my final reply to my complaint.
They should do the right thing and allow those who complain to exit on the December terms.
Yeah, one of my pet hates is platforms who are happy to come on here when it's all rosy and they want to blow their own trumpet, then scuttle off into the ether when the going gets tough and there are serious questions to address. We saw the same with FO. You find out a lot about a platform at times like this.
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