jlend
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Post by jlend on Mar 29, 2020 14:19:51 GMT
It would be impossible for them to quantify any issues at the moment IMHO. I am not sure what they could say.
The next quarterly performance update from them is due 30 April. This may give an indication if they don't say anything before then.
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Post by overthehill on Mar 31, 2020 10:27:26 GMT
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?
Thanks for that. Now that I know all the nuances it explains the persistent shortfall every month I thought I was imagining even based on 5.4% rather than 6.5%. I find the new dashboard information useless, does it tell me how much interest I'm earning every month like Ratesetter and the others ? No. A PR disaster like Property Partner's cash grab.
I randomly checked 3 recent monthly statements (forgot they were available!) for interest and the figures at best based on money invested at end of the month were 1.1%, 1.7% and 2.1%. Recent loan sales almost certainly made these figures worse as the algorithm picks the loans to provide the lowest exit charges but still... I know they are just recouping interest already paid out over the previous years but it should be a good time to sell as borrower interest rates have been dropping everywhere and that should create a selling premium on your loans being sold to new buyers, not discount.
So Lending Works has decimated the monthly income, following on in Property Partner's footsteps (a 40% reduction) but hats off to FundingSecure because they went one step further and decimated capital and interest...
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benaj
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Post by benaj on Apr 1, 2020 9:53:43 GMT
Expect a new update "soon".
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Post by jojo on Apr 1, 2020 16:25:48 GMT
On this first day of the month, i have review my statement from LW so Just a quick update on the evolution of the monthly interest rate.
Please, be aware that I withdraw all my repayments and Interests automatically each 28th of month, and despiste doing so, I am really pleased to see that the interest rate increasing.
Jan 2020 : 0.224% so 2.7% annualised
Feb 2020 : 0.278% so 3.33% annualised
March 2020 : 0.356% so 4.27 % annualised
LW on this forum communicated that the first half should see some improvement, it does look like they have been able to do so.
Obviously all the figures could change moving forward because of the covid 19 situation.
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criston
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Post by criston on Aug 31, 2020 17:54:49 GMT
Update today. How to tell us absolutely nothing. They may have well of said-
'Thank you for your support, allowing us to take your capital to run the company and we have no idea how much longer it will go on for; and we will continue to save your interest for you, to fund your future recoveries' !
'We will give you 10 days notice when normalisation is to end'. That really makes me feel relieved.
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mogish
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Post by mogish on Aug 31, 2020 18:09:47 GMT
Yip , agree. I will sleep better knowing I'm supporting all the LW board , I triva and the hard pressed customers.
Not one mention of thanking investors or the potential for us to see even a small bit of interest in the near future even although they are performing better than most high st banks.
Out of all the platforms I'm with LW have rewarded me the least.
I and others are now paying for our loyalty.
Can only hope I get at least my capital back.
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Post by df on Aug 31, 2020 20:35:19 GMT
Yip , agree. I will sleep better knowing I'm supporting all the LW board , I triva and the hard pressed customers. Not one mention of thanking investors or the potential for us to see even a small bit of interest in the near future even although they are performing better than most high st banks. Out of all the platforms I'm with LW have rewarded me the least. I and others are now paying for our loyalty. Can only hope I get at least my capital back. I might be wrong, but it sounds like when/if FCA approves the transaction your hope has a good chance to materialise. I didn't expect this monthly update to give any specific information on dates and interest rates, so I found it informative enough at this stage.
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criston
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Post by criston on Sept 5, 2020 13:39:13 GMT
The update was well worded to placate all the usual passive lenders.
There is absolutely no reason they should wait for FCA borrower guidance to restart proper operations.
Plenty of other P2P platforms are continuing to operate.
They are making the most of taking our money as well as making the most of benefits offered by the government.
They are treating us with contempt.
Have no doubt Lending Works are reading posts here & are well pleased with the response from those lenders here who accept what they feed them, and the fact that there are very few negative comments.
I am resigned to the fact that I am part of a group of lenders, not only on this platform, without backbone & the sort of people who are always taken for a ride.
Also many defaulting borrowers must be rubbing their hands at how easy it is to get away without paying their debts.
The law in the UK is weighed against the lender.
Some P2P platforms do not stand for borrowers antics & support lenders.
This platform is not for me, when all my funds are relinquished.
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criston
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Post by criston on Sept 7, 2020 13:51:10 GMT
For what it's worth, this is the reply to my email, worded much the same as my previous post.
'The reasoning behind waiting on the FCA is that we will be mandated to provide a further three months payment deferral to borrowers seeking repayment holidays. This will influence whether we continue to extend the normalisation period or not. It is worth noting that helping our borrowers indirectly helps our lenders, meaning that we will not need utilise the Shield to repay (you) our lenders. Had we not assisted our borrowers with these facilities (or if the government didn't step in), then you will find that hundreds of our borrowers will have missed payments with no capacity to catch up.
I appreciate your frustration and can only hope the economy will recover quicker than anticipated. Still, in the meantime, we are working tirelessly in the background to resume lending and reopen the secondary market'
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mogish
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Post by mogish on Sept 7, 2020 14:51:30 GMT
Cant see there being long ques waiting to buy SM loans.
What exactly are LW working tirelessly at? No loans being made, no interest being paid. I guess they are quite happy making a very nice living at investors expense.
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Post by borderer on Sept 9, 2020 9:17:43 GMT
One of the issues to come out of this for me is how little leverage retail lenders have without access to the financial services compensation scheme or something similar. The level of communication by LW at times has been woeful and as the previous poster wrote, what exactly are they waiting for? It appears that LW are just shoring up their position while the investors are left hanging.
This year has been interesting and insightful for me and my attitude towards P2P has certainly changed - and not for the better!
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Post by borderer on Sept 9, 2020 9:34:31 GMT
I spoke to customer services regularly but, while they sympathised, I don't think they had the full picture of what was going on.
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Post by overthehill on Sept 13, 2020 18:45:15 GMT
Some hard numbers since I've not had a penny of interest since the 6 april 2020.
Based on their loan book, there is 75.5M of repaying loans , this excludes late + defaulted loans. The average gross interest rate is 5.56 , I'm assuming this is the lender rate not the borrower rate so Lending Works are still collecting their premiums seperately.
That should mean 352k a month x 6 months = 2.112M into the Provision fund. The new owners will be delighted and all of us investors are chuffed for them.
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mogish
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Post by mogish on Sept 16, 2020 15:49:49 GMT
No doubt coincidence but since I vented my frustrations my capital returns have increased quite a bit!
No new updates from LW so can only think some loans are now being paid back after the 3 month payment holiday.
Hopefully we might see some interest payments in the near future.
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Post by oppsididitagain on Sept 17, 2020 7:57:34 GMT
No doubt coincidence but since I vented my frustrations my capital returns have increased quite a bit! No new updates from LW so can only think some loans are now being paid back after the 3 month payment holiday. Hopefully we might see some interest payments in the near future. I would download your loan book and check to see if they are being putout of the shield account or from the holders. LW is taking the p!$$ in my opinion, its the only platform NOT to pay ANY interest to us , the people who supported the platform in the beginning. Some director fees should be diverted to the interest pot and distributed. Im sure this will be a strong and sturdy platform in the future, but with this treatment there aren't going to be very many good recommendations online from me Im afraid.
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