Legal Action (AC)

Harland said he agreed with my post yesterday but then deleted his post soon after.




I think he is in the camp that is hoping and praying that he gets his money back....there are a lot like this but reality is if you want your money back you need to take action early on before you are left with the bad debt and non-performing loans once all the good debt has paid out to the small investors.



The current situation of £1 withdrawal every couple of days does not help anyone to be honest, all it has done is made everyone annoyed - some have expressed their annoyance publicly whilst others are mumbling quietly about it and others are praying and hoping it works out with positive remarks. 


The FIFO queue would have meant people simply wait a few weeks or months to get all their money back, but they have put people in a situation where they expect everyone to wait years so effectively you have a large group of people constantly annoyed and angry with AC. How much resource will go into dealing with the large group with the same queries and how do you build a credible reputable business behind this?


Clearly a blog does not work over the long term, it addressed short term issues.

Ratesetter has paid out millions since Corona - AC have been incompetent in their handling of this whole situation.

Nail on head.
Overall time is same
FIFO - people wait a varying amount of time to get all their money in one go. Some wait a lot less time than others.
Pro-rata - everyone waits the same time to get x% of their money
flat rate - everyone waits the same time to get £x of their money. 

I really do not understand why some people on this forum try to extrapolate up the current AC repayment rate and claim that is useful information. AC has agreed to forbearance measures (whether they had much choice or not is debatable) so it is blindingly obvious that repayments will be extremely limited at the moment. This will not always be the case.

It is like your mortgage lender giving you a installment break of three months and then after the second month writing to you to complain that "you will never pay the mortgage back at this rate". The rate the mortgage is being paid back during the installment break is not a useful indicator of the overall repayment period. 

Is this that complicated?

Not at all complicated. Just reality tinted glasses. I wear the same ones. 

To really put the cat amongst the pigeons, I expect before this passes to see interest forgiveness. In my opinion I'd rather lose some interest than force sale with all those costs. Hope the I WANT MY MONEY BACK don't have a heart attack reading this . 

As to AC their track level has been praised many times. There will many wanting to invest ,me for one.

Sadly such action is probably inevitable. What I really struggle to understand why any company would deliberately go out to alienate its biggest investors / customers. Given Stuart indicated there are less than 5000 investors (forbearance vote) one would imagine his team would be directly contacting anyone with over say £50k invested & placating them, not deliberately disadvantaging them. I certainly doubt AC will be treating their institutional investors with such contempt.

I understand over £80m of capital was to be redeemed in the next couple of months - circa 20% of the loan book. I personally would have welcome the opportunity to have my share of that back. I shouldn’t be forced to invest redeemed capital in illiquid, riskier investments, for what is now a smaller return!

On a personal note - How can it be right that funds held in the cash account have been invested against my wishes, into loans that are already in default!

A FIFO / pro-rata return of funds is the right thing to do; with a hopefully temporary, winding down the loan book in an orderly manner. No one wants the administrators called in, but as things stand I am beginning to think it may be is the best option for above average balance investors.

ACs actions presently appear to focus on keeping the platform running, drawing their salaries, and lending funds to borrowers who are increasingly likely to default. Their decision to not repay funds, in order, from the cash account, then 30 & 90 day accounts also gives them access to cheaper money increasing their profit, so why introduce fees?

One thing for sure is they are certainly not acting in the best interests of all of their investors.

"I understand over £80m of capital was to be redeemed in the next couple of months".  Was, Ian. Was. Then the whole world stopped.

"I shouldn’t be forced to invest redeemed capital in illiquid, riskier investments" .Your capital is being reinvested so that the projects you're already invested in won't collapse in a worthless heap. If you cut a cat in half, you don't have half a working cat.

"How can it be right that funds held in the cash account have been invested against my wishes, into loans that are already in default!"  This was clearly stated, and has been discussed at length. I was certainly aware of that, can dig out some posts of lots of people discussing this if you like. I'm surprised you'd be willing to take legal action, but not understand your own investments.

"with a hopefully temporary, winding down the loan book in an orderly manner. No one wants the administrators called in, but as things stand I am beginning to think it may be is the best option for above average balance investors."  

Really?  have you seen what's happened at Collateral/Lendy? You are dreaming if you think this is the best option for anyone except the administrators.

"ACs actions presently appear to focus on keeping the platform running, drawing their salaries, and lending funds to borrowers who are increasingly likely to default. Their decision to not repay funds, in order, from the cash account, then 30 & 90 day accounts also gives them access to cheaper money increasing their profit, so why introduce fees?"


First, Assetz have reduced their salaries. Second, they are lending funds to borrowers where possible to keep the show afloat and give you a chance of your money back ( half a cat is not a cat). 

I'd be very surprised if anyone was idiotic enough to launch legal action on the basis of what has been done so far. If they do, they clearly have much more money than sense.