jester
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Post by jester on Nov 26, 2020 12:16:46 GMT
Matthew kudos for eventually sticking your head above the parapet in what was only ever going to be a snake pit given the circumstances. My two pennies - - I completely see these are the toughest of times and we can all expect hardship & losses - If your forecast of no one losing capital come to fruition this is the best we can hope for and probably is to be admired BUT how can you as a platform have been so naive as to create a system which pays inflated interest only to have to claw it back, it's a PR disaster and you seem to be the only platform doing it this way. Even shocking defaults on other platforms seem to cause less anger than taking back what you gave us. The structure appears to be madness. Finally to state "investor feedback suggest this view is supported" is the most blatant spin I've read in sometime. Not hearing from people isn't support, it's more likely obliviousness. A child could spend 5mins on this forum or trustpilot and tell that the swell around LendingWorks is completely negative and angry whether the comments come from 25 investors or all 7000.
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IFISAcava
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Post by IFISAcava on Nov 26, 2020 12:38:01 GMT
These are my recent transactions. Hard to work out what is going on - some repayments are followed by a "Shield Contribution Adjustment", others aren't. Different percentages taken too. Always a round figure for the shield contribution though, which seems a bit arbitrary. unless it is "80% rounded to nearest whole number" or something. I don't have time to speculate, it's pennies. But annoying that not transparent.
02/11/2020 Capital repayment received Growth Shield 0.0277
02/11/2020 Capital repayment received Growth Shield 25.75323
03/11/2020 Capital repayment received Growth Shield 0.01698
05/11/2020 Capital repayment received Growth Shield 0.05603
12/11/2020 Capital repayment received Growth Shield 0.01537
16/11/2020 Capital repayment received Growth Borrower 0.09213
16/11/2020 Shield contribution adjustment Growth N/A -0.08
20/11/2020 Capital repayment received Growth Shield 0.01282
20/11/2020 Shield contribution adjustment Growth N/A -0.01
23/11/2020 Capital repayment received Growth Borrower 0.00012
23/11/2020 Capital repayment received Growth Shield 0.02632
23/11/2020 Shield contribution adjustment Growth N/A -0.02
24/11/2020 Capital repayment received Growth Shield 0.0196
26/11/2020 Capital repayment received Growth Borrower 0.05501
26/11/2020 Shield contribution adjustment Growth N/A -0.04
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mogish
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Post by mogish on Nov 26, 2020 12:56:43 GMT
£31 deduction in 1 week on £10537. Marked as shield deduction. This normalisation period cant last forever, getting a bit fed up logging in to withdraw my lunch money  |
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criston
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Post by criston on Nov 26, 2020 13:15:14 GMT
Had not realised deductions can be found in transaction statement.
It all started for me on 16/11/20
I have had a total of 0.5% deducted since then, in 10 days.
If that keeps going it equates to 18% per annum.
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benaj
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Post by benaj on Nov 26, 2020 13:15:49 GMT
These are my recent transactions. Hard to work out what is going on - some repayments are followed by a "Shield Contribution Adjustment", others aren't. Different percentages taken too. Always a round figure for the shield contribution though, which seems a bit arbitrary. unless it is "80% rounded to nearest whole number" or something. I don't have time to speculate, it's pennies. But annoying that not transparent. 02/11/2020 Capital repayment received Growth Shield 0.0277 02/11/2020 Capital repayment received Growth Shield 25.75323 03/11/2020 Capital repayment received Growth Shield 0.01698 05/11/2020 Capital repayment received Growth Shield 0.05603 12/11/2020 Capital repayment received Growth Shield 0.01537 16/11/2020 Capital repayment received Growth Borrower 0.09213 16/11/2020 Shield contribution adjustment Growth N/A -0.08 20/11/2020 Capital repayment received Growth Shield 0.01282 20/11/2020 Shield contribution adjustment Growth N/A -0.01 23/11/2020 Capital repayment received Growth Borrower 0.00012 23/11/2020 Capital repayment received Growth Shield 0.02632 23/11/2020 Shield contribution adjustment Growth N/A -0.02 24/11/2020 Capital repayment received Growth Shield 0.0196 26/11/2020 Capital repayment received Growth Borrower 0.05501 26/11/2020 Shield contribution adjustment Growth N/A -0.04 Yes, it seems they have updated the transactions csv today. "Shield contribution adjustment" is something new. However, I notice there are "Shield contribution adjustment" even if the capital repayment ain't covered by shield. Examples: (Sorting by Chunk ID) With contribution adjustment19/11/2020 Capital repayment received borrower 0.01451 19/11/2020 Shield contribution adjustment N/A -0.01 19/11/2020 Capital repayment received 2240995 Shield 0.15716 19/11/2020 Shield contribution adjustment 2240995 N/A -0.01 Without shield contribution adjustment02/11/2020 Capital repayment received 2175662 Borrower 0.12154 23/11/2020 Capital repayment received 2008849 Borrower 0.02111 Shield contribution adjustment can be as low as 0% to 100% of capital repayment. So far, median adjustment is 42%, lowest 5% and highest 99%. Right now, it's unclear whether these adjustment started on the 16th Nov or shield has no money left since 16th Nov. Time will tell perhaps.
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benaj
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Post by benaj on Nov 26, 2020 13:34:01 GMT
Had not realised deductions can be found in transaction statement. It all started for me on 16/11/20 I have had a total of 0.5% deducted since then, in 10 days. If that keeps going it equates to 18% per annum. It's not clear why these shield adjustment contribution started since 16th Nov, IFISAcava reported 1p deduction on 12th Nov. So what happened? The works of "fair and simple" contribution adjustment engine perhaps.
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macq
Member of DD Central
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Post by macq on Nov 26, 2020 13:39:07 GMT
Matthew kudos for eventually sticking your head above the parapet in what was only ever going to be a snake pit given the circumstances. My two pennies - - I completely see these are the toughest of times and we can all expect hardship & losses - If your forecast of no one losing capital come to fruition this is the best we can hope for and probably is to be admired BUT how can you as a platform have been so naive as to create a system which pays inflated interest only to have to claw it back, it's a PR disaster and you seem to be the only platform doing it this way. Even shocking defaults on other platforms seem to cause less anger than taking back what you gave us. The structure appears to be madness. Finally to state "investor feedback suggest this view is supported" is the most blatant spin I've read in sometime. Not hearing from people isn't support, it's more likely obliviousness. A child could spend 5mins on this forum or trustpilot and tell that the swell around LendingWorks is completely negative and angry whether the comments come from 25 investors or all 7000. The number of people complaining via feedback could be in relation to the number of people who can actually understand what is happening - as its hard to complain if you can't put it into words I read a article the other day that said some people find investment trusts complicated - having invested in IT's for over 25 years i would say a Black box "fixed rate" LW product is way more complicated 
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Post by EJi on Nov 26, 2020 13:51:43 GMT
£31 deduction in 1 week on £10537. Marked as shield deduction. This normalisation period cant last forever, getting a bit fed up logging in to withdraw my lunch money I've been told by email
So this probably means the secondary market will never reopen. Who's going to buy loans with negative interest. It looks like we're stuck with these loan for the next 3-4 years.
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Post by EJi on Nov 26, 2020 14:01:18 GMT
I recently had an interaction with customer services via email. I then received one of those how did we do emails asking were you happy with how CS dealt with the query. I was happy with answer I got in that instance (they usually don't answer what was asked) but I thought if I click yes I'm happy that would be used in statistics to show that I'm happy overall. I think LW are using customer service stats to show people are happy. Being happy with how CS dealt with something has nothing to do with being happy overall.
Looks like Matthew has done another runner 
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keystone
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Post by keystone on Nov 26, 2020 14:20:16 GMT
Shield contribution adjustment can be as low as 0% to 100% of capital repayment. So far, median adjustment is 42%, lowest 5% and highest 99%. Right now, it's unclear whether these adjustment started on the 16th Nov or shield has no money left since 16th Nov. Time will tell perhaps. Apparently performance at industry average, shield has increase massively since start of year, yet we have negative interest rates of between -20 to -40% per annum. Who knows what's going on, I'm seriously worried that maybe LW are just doing a Collateral or Lendy, and the funds are **** ******* ***** *** ******** *********. The FCA just like at Collateral don't appear to have a clue what is going on. Investors are being kept in the dark just like Collateral and Lendy. According to LW stats the shield has increased by over £1.2M since the start of the year. Lending Works Shield As at 31/12/2019 Total amount outstanding (covered by the Shield) £90,738,982 Shield cash balance (0.08% of total amount outstanding) £75,095 Shield future income (5.87% of total amount outstanding) £5,443,815 As at 30/10/2020 Total amount outstanding (covered by the Shield) £68,535,548 Shield cash balance (1.89% of total amount outstanding) £1,292,324 Shield future income (13.03% of total amount outstanding) £8,929,534
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IFISAcava
Member of DD Central
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Post by IFISAcava on Nov 26, 2020 14:43:55 GMT
Had not realised deductions can be found in transaction statement. It all started for me on 16/11/20 I have had a total of 0.5% deducted since then, in 10 days. If that keeps going it equates to 18% per annum. It's not clear why these shield adjustment contribution started since 16th Nov, IFISAcava reported 1p deduction on 12th Nov. So what happened? The works of "fair and simple" contribution adjustment engine perhaps. yes, nothing to account for that 1 p deduction. since we are getting zero interest, and since the payments are taken from capital repayments, I cannot see how on earth any regulator would allow them to get away with this not being called what it is: a capital loss. The interest beforehand was not "accrued", it was paid (and taxed as such if outside the ISA). It is revealing that the statement does not say "negative interest" - because that would be economical with the truth.
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Post by EJi on Nov 26, 2020 15:40:48 GMT
I hadn't read the LW trustpilot reviews until today. They've been absolutely hammered. Not one positive recently.
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benaj
Member of DD Central
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Post by benaj on Nov 26, 2020 15:59:05 GMT
It's not clear why these shield adjustment contribution started since 16th Nov, IFISAcava reported 1p deduction on 12th Nov. So what happened? The works of "fair and simple" contribution adjustment engine perhaps. yes, nothing to account for that 1 p deduction. since we are getting zero interest, and since the payments are taken from capital repayments, I cannot see how on earth any regulator would allow them to get away with this not being called what it is: a capital loss. The interest beforehand was not "accrued", it was paid (and taxed as such if outside the ISA). It is revealing that the statement does not say "negative interest" - because that would be economical with the truth. That’s probably because of the “simple and fair” strategy. Checking the loan chunk IDs from individual loanbook, you may found there are massive chunks of outstanding loans in the loanbook and yet only a monthly proportion of capital are repaid by shield. Some loan chunk could be 20% of the entire investment when they were acquired.
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Post by Harland Kearney on Nov 26, 2020 16:08:11 GMT
I hadn't read the LW trustpilot reviews until today. They've been absolutely hammered. Not one positive recently. The one about being made redundant then having the audacity to say it been a good "crisis" whilst your savings are wiped away is nearly heart breaking... I don't see how Lending Works can tell investors they are performing at or better than Industry standard. It is very likely they will never make it out of this crisis unless they turn institutional (the plan most likely) I was about to invest in this company before the crisis started although I did not luckily. FCA sound like they don't have a bloody clue what's going on, just like with Lendy and FS until it blew up in their faces. Best of luck to all, a small capital loss is better than a full wind up as the devil's advocate.
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Post by Ace on Nov 26, 2020 16:39:36 GMT
I hadn't read the LW trustpilot reviews until today. They've been absolutely hammered. Not one positive recently. The one about being made redundant then having the audacity to say it been a good "crisis" whilst your savings are wiped away is nearly heart breaking... I don't see how Lending Works can tell investors they are performing at or better than Industry standard. It is very likely they will never make it out of this crisis unless they turn institutional (the plan most likely) I was about to invest in this company before the crisis started although I did not luckily. FCA sound like they don't have a bloody clue what's going on, just like with Lendy and FS until it blew up in their faces. Best of luck to all, a small capital loss is better than a full wind up as the devil's advocate. I'm almost in total agreement with you Harland. Before covid LW were probably guilty of being over optimistic on the rates they could achieve. They were certainly guilty or not adjusting the rates lower when it was clear that they couldn't achieve them. They are also guilty of making a pig's ear of their lender communications. I think that covid has now exposed their over-optimism and will now cause capital haircuts (even if they refer to these as negative interest, its the same thing. Once interest is paid it becomes your capital. If they them take some of that back it is a capital reduction). However, having said all of that, I feel that lumping them in with the likes of Lendy and FS is going to far.
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