Legal Action (AC)

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.

It appears, the only way in which investors can immediately stop AC unfairly prejudicing against larger investors, is to seek an injunction to prevent any further withdrawals from AC, until an equitable process is put in place which takes account of the timing of withdrawal requests & lenders exposure to loans where funds are generated.

Imagine thinking that taking legal action against AC will save your money.  If anything its going to guarantee a loss of unspeakable proportions not only to yourself (and most likely mostly to yourself with legal fees) but to all investors.

Do you understand that, that overhalf the loan book is property, when no drawdowns happen you are unlikely to be awarded first charge security receivers as the contract is broken. You could be looking at 100% losses in these loans. (Take a look at FS 100% loss thread, it can and will happen to loans which undergo a platform melt down/legal closure)

The cash AC holds is ring faced, it won't even be awarded to your court case. You'll be given a proportional amount which if your lucky would likely be 5-10% of your capital returned. I cant' get my head around any of this, its a joke. (the thought that legal action will magically generate your cash back)

I actually agree with the fact that large investors are treated unfairly, but legal action really isn't going to assist anybody here. 

Please wait for loans to repay. Even if you had the fully equal pro-rata system, you are likely to be seeing a few quid more than anybody else each day. Not going to be a world of diffrence. Where its going to be a issue is when those big loans do repay. By then AC better have a good soultion to this issue, or alot of investors are going to get shafted.
I am really expecting AC to return to a FIFO once those capital repayments and the UK economy goes from a crisis mode, to a recovery mode in full swing. Will be many more months.

Yes.  I have said it before, but in a population of 38000 investors (the number from AC's website) you are going to have a real mix of all sorts of people involved in this.

I think AC should stop any payments until further notice. I mean, what's the meaning of payments of £1.50 or £2.50 every other day, (not even every day)? That's what, £7500 or £12500 a day for all 5000 of us (providing all of us put a withdrawal request)? Even for the most desperate investor, £100 a month won't be much of a use. So, why is AC doing it? Anyone?

The other thing is, I don't think some of you guys are right about AC not carrying about the big investors or alienating them with their decisions. We just don't know. I remember reading an article more than a year ago about AC aiming to have half of their investments from institutional investors, investment funds. Since than, I am sure those institutional investors have more than half of the £335M currently invested in AC. None of us is really a big whale, we are more like gold fishes in a bowl. I don't believe any of us has invested more than £150,000.00 in AC at any given point in time, if you have that much money to invest in one platform or type of investment, you have too much money to manage them yourself. Half of £335M is £167.5M, divided by 5000 is £33,500.00, that is something I can believe.

So the real questions for me are where are all those institutional investors in all of this, are they treated the same way as us, were they having a separate forbearance vote? Do they get £1.50 every other day?