An update from Lending Works

I am doing the comparison because I think lenders investment road is never straight forward, and i think some people wants to have good interest with no change at any time or any risk. (and maybe lots of people thought p2p was going to deliver a straight forward "free interest money").

SO I just think it is important to remember that the lender investment is all about risk/reward. (I don't think it is fair when people says it is normal when a share price drop 30-35% but it is not normal when you have changes hurting 4-5%, and they accept to wait and be patient for the share price to come back up but they can't accept to wait for rates normalisation of LW (ie maybe 6 month and they decide to exit in 24H).

If you watch the chart below, the Blue arrow is approximately the starts of LW in March 14, as you can see FTSE is under the price of the line, so my investment would have been negative over the last 5 years,  when I had an average of 5% in the last 5 years on p2p. 

Would agree with you that some maybe thought that p2p was going to deliver straight forward interest but think most knew the risk and to be fair the likes of LW & RS still market it as a straight forward headline rate and suggest a savings like product.
The reason that people got the hump with LW was that is was poorly explained and those advertised rates (which are still being used on the landing page) were then part of a penalty that most did not see coming due to that poor explanation but yes in the general running of p2p you should expect losses 
The FTSE is probably the worst index to follow even with div's and i tend to use IT's which are way ahead of it but a quick look on Trustnet with figures up to Friday show a 5 year return of the Fidelity UK of 16.5% so don't think your investment would have been negative

I do share 100 % your view on the lack of Transparency but I kind of understand why they did it, I just hope those changes was done for the good of lenders at the end

I was referring to the 100 and to be fair there are the dividends which many don't seem to take  account of but my uneducated answer/point was based on what the experts say (well experts to me ) in that if looking to follow the UK in passive form you should use the All share index or the 250 index 

It's taken me a while to realise what has happened but I want to add my voice to those who feel LW were misleading. When in their November update they said "These changes will also result in an adjustment to the interest rates on the existing loan portfolio, with interest rates reducing from an average of 5.2% p.a. to 4.8% p.a.", most people would interpret that as meaning the interest rates *going forward* would be reduced, not that there would be a *retrospective* reduction, with future interest rates being hugely reduced to make the 5-year average equal the new rate. I suspect there will be many people similar to me who have not realised what the change was up to now and will add to the pool of angry investors going forward. Perhaps the change was necessary due to poor loan performance, but apparently leaving it to the last minute so that a drastic change was required in existing loans and then failing to communicate it clearly will hugely undermine trust and the company's future prospects - I can't see myself increasing my investments there for a long time.

Is anyone preparing to challenge this with the FCA or similar, which I might be able to contribute to?

Also, how do we find out now what the future interest rate on our loans is? I can see a "Weighted avg. rate" and a "Weighted avg. rate on active chunks", but do these refer to the future interest rates (presumably over the remaining loan terms) or are they averaged over the whole loan lifetimes from the beginning? Is the difference that the first includes loans missing repayments and the second does not? Where can people see the dates and amounts of scheduled future interest payments, necessary for many to do financial planning?

Am average borrower APR of 13% for the last 2 years might make things very difficult for LW. That APR suggests to me a set of borrowers not in ideal circumstances to begin with (indeed, 40% of loans are for debt consolidation).

We don't have the information directly, but I'd imagine their borrowers are more likely to be in less secure and more cyclical employment. Many of course will be rescued with the Government's aid package, but might immediately struggle financially with the delays to self-employment aid (June is it?), find that 80% of their pay isn't enough to service their debt, or indeed slip through the net if not eligible for whatever reason.

The PF having already been depleted of course adds no cheer. I'm trying but struggling to see a silver lining here, I'm surprised they haven't been in touch with their plan.