keystone
Member of DD Central
Posts: 718
Likes: 587
|
Post by keystone on Feb 1, 2020 10:02:04 GMT
What is worse is that they are using the FCA's mandated changes to hide their dishonesty. We would have been better off if they had just shut up shop to retail investors like Landbay did and returned everyone's money.
The truth is Lending Works have lied and misled their existing investors and have deliberately been selective with their responses, who can trust them anymore, not their existing investors and not any future investor. They are now a dead platform.
|
|
|
|
Post by propman on Feb 1, 2020 13:06:12 GMT
What is worse is that they are using the FCA's mandated changes to hide their dishonesty. We would have been better off if they had just shut up shop to retail investors like Landbay did and returned everyone's money. The truth is Lending Works have lied and misled their existing investors and have deliberately been selective with their responses, who can trust them anymore, not their existing investors and not any future investor. They are now a dead platform. While I was also mislead about the changes and particularly by Matthews response to my query, I do not think we have been lied to, they just put a spin on the changes. I admit to surprise at how readily people accepted what was happening in December and sold everything I could then so only have a fraction of my former investment.
Essentially they needed to plug the PF shortfall immediately that they are doing by retaining the majority of the interest. I think there should be a "penalty" for anyone exiting as they are avoiding the pain having had the over generous rates previously, while this provides an upfront premium to cover expected immediate and known losses for those reinvesting. Hopefully by doing this in cohorts, the majority of the pain is to those that were around in 2017 & 2018 and have had the benefit of the interest at higher rates. "Variable" rates is a spin on uncertain deductions from headline rates. I agree that they should try and normalise the situation to paying decent interest with small deductions ASAP and reestablish trust again. Winding up now would mean even harsher reductions as there would be no possibility of future contributions to deal with short term issues so a more prudent approach would have been required.
JMHO
- PM
|
|
|
|
Post by Ace on Feb 4, 2020 11:35:18 GMT
It's all depends on your "current loan performance". Depending the origination of cohort, if they perform like real 5.4% loans, i.e. your monthly interest, it should be 0% shortfall. If it perform like 0%, it could be 5.4%. Ace reported a shortfall of 6.5% for his remaining 11% of investment, it would be interest to see the performance of his remaining loans. The big question is? how big can this shortfall be? can it be higher than the borrower rate, average 12.9% APR? I really hope someone from LW could clarify this, Matthew ? Yep, just rechecked now. 26.5% unsellable.To sell the remaining 73.5% would cost a 0.5% transaction fee plus a 6.5% shortfall fee. Hitting "View Loans" shows a forecast of 4.9% for my 2019 cohort and 5.4% for my 2018 cohort. No way of knowing the size of each cohort in this once very useful, but now useless interface, so these stats are also useless. I've now lost my patience with this platform and have switched off relending. Wow, this is going from bad to worse. In 13 days my remaining account has gone from having 26.5% unsellable to 62.2% unsellable. To look on a very very dull bright side, my sales fee (sorry, interest shortfall) has dropped from 6.5% to 6.3%, plus the 0.5% transaction fee.
|
|
