An update from Lending Works

This is the response I got:


Hi ******,



Apologies for the delayed response. While I was off sick, my colleagues had no access to my emails due to a technical issue.



We requested our risk and analytics team to validate your account, and we confirm it is working correctly. Provided the performance of the portfolio is in line with our most recent forecast, then the performance of your investment will be in line with the annualised return figures shown in the chart within your account. Please note that the “Capital repayment received” transactions are stated net of any “Shield contribution adjustment”, so the gross capital repayment is the sum of those transactions.



As highlighted in previous communications, due to the timing of the loan defaults due to the COVID-19 crisis, the phasing of the negative interest rates is forecast to be most severe for the first 3 months; then the impact will reduce significantly. We expect in the Q4 2020 performance update, which will be delivered at the end of January 2021, we will announce the phasing of the negative interest rates will ease significantly.



Across the whole retail investor customer base, the impact of the negative interest rates is forecast to be approximately -2% annualised, although each account will be impacted slightly differently relative to which annual cohort of loans each retail investor invested in. A significant proportion of that -2% annualised will be deducted in the first three months. In fact, our forecast is that some of the cohorts will then move to a 0% return for the rest of their life, whereas others will move to a modest negative interest rate for the rest of their life. It is important to note that the annual cohorts with the highest current Shield deductions are also those from which a significant amount of interest has already been received, with much lower remaining balances.

All of this, though, is based on our forecast of the portfolio performance, which can change (positive or negative), hence why we provide quarterly performance updates.





I hope this helps. Again, I'm sorry for the time its taken to come back to you. If you have any further questions, please feel free to get back in touch.

English version below:

Hi******

We are going to rob you of more of your hard earned cash but dont worry it wont be for long honest! You're helping other investors get out of the mess we created.. Our next update will have good news (wink wink)..

Thanks

LW

I've lost something like 15% of my lifetime interest here in the space of a few months.

has anyone gone to the ombudsman over this? If the pandemic stretches out for years what is to stop them taking my account down to zero?

There is plenty of time to go for you to lose the other 85%.

You have to make your complaint to Lending Works first before you can go to the Ombudsman.  Once they receive 25 Complaints they have to pay a fee to the Ombudsman service.  They were at 21, so every little helps. 

They definitely won't take your account down to zero unless the global situation deteriorates, the coin lands on tails, the dart lands on any treble, it rains on Wednesday at 2.37pm or if they feel like it.

Lending Works have stated that the annual returns received by every retail investor over the lifetime of their investment are expected to remain positive.  Of course they can and probably will take it down to 1 pence and fulfill that pledge.

Meanwhile in other events, Growth Street, who had called a resolution event in June 2020 and have closed down have returned 100% of investors capital and interest up to that date.

Covid19 has singled out Lending Works in particular so investors have not only lost 6 months of interest like at Growth Street but will lose 6 years of previously paid interest, either that or Lending Works are a bunch of incompetent ********.

Yet again the FCA is beating up on bitcoin and crypto on the BBC website, they do make me laugh! They stand by and do nothing as certain FCA regulated P2P companies help themselves to investors funds, keeping there zombie companies alive. Perhaps the FCA might better spend their time a bit nearer home, keeping on eye on those they supposedly already regulate! One of the reasons people are flocking to crypto in the first place, is because they're fed up with being stitched up by centralized financial institutions whilst the so called regulator stands by and does absolutely nothing. You won't control crypto, so why waste time trying, perhaps that's what concerns them so much, people free to make investment choices with no centralised control, no one holds your funds, only the investor has control of his/her money.

I'm getting increasing amounts of money returned to me recently. Are LS getting rid of investors money and funding loans with cheaper sources.

I have just sent a complaint to LW about the Shield contribution adjustment. Now I have December's figures.

I will ask my wife to send one too.