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Post by Badly Drawn Stickman on Feb 22, 2021 18:48:42 GMT
So they are aware there is a perceived conflict of interest but will safeguard against it so have satisfied themselves there isn't a conflict of interest.... Hmmm. Even a perceived conflict of interest erodes trust in the process and, in my view, makes the appointment inappropriate.
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cwah
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Post by cwah on Feb 22, 2021 18:49:21 GMT
It’s repeated proof that the existing rules under which administrators operate are inappropriate for lenders and a reminder that the FCA permission to exist, let alone authorise, should never have been given while those rules were still in place. Yes, this is my fourth Admin so far (Coll, L, FS being the others) and what seems pretty clear is that the Admin process relegates Lenders to a status quite close to that of shareholders when a conventional business fails. That makes us last in the queue to receive anything from any recoveries. Had I known we were, in effect, investing in the success (or otherwise) of the Platforms themselves, rather than making asset-backed loans against proper assets (which was the basis upon which I lent) then I really don't think I would have risked my capital in, effectively, holding a stake in these Platforms. The ring fencing is just a farce. (Un)surprisingly, the uk p2p is one of the worse we could have. I also invested in Mintos which wasn t authorised by the FCA and they are way way safer. And better. Still better to date. I think the FCA should just be disbanded. They put useless regulation just to make sure they get their paycheck. It just increases cost for companies without any benefit for investors. If anything, it lures them into thinking the companies are properly regulated and end up losing more money!
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 22, 2021 18:52:07 GMT
Ah someone has finally poked the hornets nest
Everyone is so busy buzzing they don't seem to have read the document
MT are entitled to recover costs & fees from the recovery of loans under the t&cs in priority to lenders. MT also receive a margin on performing loans.
The administration costs will be paid from this income.
MT would have been entitled to these fees if they had continued to wind down the loan book themselves.
There is no additional cost to lenders as a result of administration contained in the proposals ... no FS 2.5%, no Lendy new waterfall, no expensive Collateral loan book reconstruction.
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Post by p2psws on Feb 22, 2021 20:09:02 GMT
It’s repeated proof that the existing rules under which administrators operate are inappropriate for lenders and a reminder that the FCA permission to exist, let alone authorise, should never have been given while those rules were still in place. Yes, this is my fourth Admin so far (Coll, L, FS being the others) and what seems pretty clear is that the Admin process relegates Lenders to a status quite close to that of shareholders when a conventional business fails. That makes us last in the queue to receive anything from any recoveries. Had I known we were, in effect, investing in the success (or otherwise) of the Platforms themselves, rather than making asset-backed loans against proper assets (which was the basis upon which I lent) then I really don't think I would have risked my capital in, effectively, holding a stake in these Platforms. This is perfectly put tony9239 . And Im in the same boat, as I know a great many others are. The only thing I would add to your sentence is: Had I known we were, in effect, investing in the success (or otherwise) of the Platforms themselves, rather than making asset-backed loans against proper assets (which was the basis upon which I lent) and that the directors in various P2P platforms that I was lending to were going to be under investigation for certain 'irregularities' then I really don't think I would have risked my capital in, effectively, holding a stake in these Platforms.
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TitoPuente
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Post by TitoPuente on Feb 22, 2021 20:31:33 GMT
Ah someone has finally poked the hornets nest Everyone is so busy buzzing they don't seem to have read the document MT are entitled to recover costs & fees from the recovery of loans under the t&cs in priority to lenders. MT also receive a margin on performing loans. The administration costs will be paid from this income. MT would have been entitled to these fees if they had continued to wind down the loan book themselves. There is no additional cost to lenders as a result of administration contained in the proposals ... no FS 2.5%, no Lendy new waterfall, no expensive Collateral loan book reconstruction. Aren't the T&Cs time dependent? M*fields will make sure things are stretched enough to extract all the milk. They have a track record of doig so.
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taca
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Post by taca on Feb 22, 2021 20:36:27 GMT
"It is important for creditors to note that the loans are not assets of the Companies. Lenders have lent directly to the Borrowers via the Platform and the security of those loans is held on trust by MSTL on behalf of the Lenders in the specific loans." (4.2)
Sure we'll have to pay recovery fees and will incur losses, which is gutting, but it doesn't sound to me like our funds will be used to bail out creditors. Or am I missing something?
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ilmoro
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Post by ilmoro on Feb 22, 2021 21:50:10 GMT
Ah someone has finally poked the hornets nest Everyone is so busy buzzing they don't seem to have read the document MT are entitled to recover costs & fees from the recovery of loans under the t&cs in priority to lenders. MT also receive a margin on performing loans. The administration costs will be paid from this income. MT would have been entitled to these fees if they had continued to wind down the loan book themselves. There is no additional cost to lenders as a result of administration contained in the proposals ... no FS 2.5%, no Lendy new waterfall, no expensive Collateral loan book reconstruction. Aren't the T&Cs time dependent? M*fields will make sure things are stretched enough to extract all the milk. They have a track record of doig so. The pace of the administration is determined by the individual loan resolutions and here I think there is an issue. Totally reliant on the integrity of the individual IP to move the process along but is that really strong enough in most cases with the same company in place. I dont think there is sufficient transparency in insolvency to really determine conflict of interest, seeing much the same with RSM on Lendy ... are the assets really taking that long to resolve, well possibly yes given the quality of asset but its all a bit hard to determine. I think there is a real conflict of interest, particularly in relation to Bollington where MT should really be raising complaints with the Insolvency Service over the IPs conduct and apparent negligence.
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mah
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Post by mah on Mar 20, 2021 18:21:18 GMT
MCL Admin Costs Pre Appointment Admin’s Remuneration - £26,440 Admin’s Remuneration (Admin Costs) - £167,860 Admin’s Remuneration (Trading Costs) - £191,013 - Wonder what is this ? What are they Trading ? Thought they were Winding down.
MSTL Admin Costs : Pre Appointment Admin’s Remuneration - £9,725 Admin’s Remuneration - £71,495
Manager / Senior Manager - £500 / £530 per hour ; Director - £550 ph ; Partner - £625 ph (excluding VAT ?)
Apart from the above Fees to be charged by Moorfields :
Former Directors are aiding as Red Ted Consulting Ltd., who would once again have their Charges / Fees (to be shown as Disbursements, but actually going to those Directors.
MCL is entitled to Recoverable Interests, Costs & Monitoring Costs – Priority determined by Loan Agreements & Lenders’ Ts & Cs (with priority to MCL over Lenders).
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mah
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Post by mah on Mar 23, 2021 18:46:18 GMT
I think everyone needs to add these issues to their Complaints to FCA and also to the IP Regulator.
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ilmoro
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Post by ilmoro on Mar 23, 2021 19:10:40 GMT
I think everyone needs to add these issues to their Complaints to FCA and also to the IP Regulator. Sorry what issues?
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mah
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Post by mah on Mar 23, 2021 19:13:00 GMT
Conflict of Interest ; Admin Charges ; Loan Issues (Incompetence/Forgery) ; Consultancy by former Directors, etc.
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shw
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Post by shw on Mar 23, 2021 19:29:39 GMT
The FCA probably have bigger headaches than bothering with MT and it's administration tactics ! Find it hard to accept loan fees when the loan itself is a crock of FYM.Unless we investors have the balls to take MT on with a strong legal case of mis management of our funds in loans we will just have to ride it out for many months in the hope we get some of our cash back,if there is anything left after fees.It is wrong and they know it,skins like Teflon.Not dissimilar to directors taking bonuses for poor performing companies - Oh they pay those back don't they,just can't remember a good example of that.No honesty in P2P for me.
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ilmoro
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Post by ilmoro on Mar 23, 2021 19:29:55 GMT
Conflict of Interest ; Admin Charges ; Loan Issues (Incompetence/Forgery) ; Consultancy by former Directors, etc.
Oh right thought you were referring to something specific. Incidentally the platform is still trading as it is managing the loan book as normal. (Objective 2 of administration) The administrators have basically split the fees between those related to the administration of the company and those relating to the wind down of the loanbook for 'clarity'
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adrianc
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Post by adrianc on Mar 23, 2021 21:39:36 GMT
Compared to Collateral, where half of the admin is trying to find where the bloody hell the directors have gone and put all the information, I'm perfectly happy for the directors to be retained on consultancy as required.
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7d7
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Post by 7d7 on Mar 24, 2021 12:16:08 GMT
Salient points raised there, Mah.
Complaint forwarded to FCA. IP Regulator is next.
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