Property Loan 20 - Repaid in full after Default

You can add Lendy's equity investment to the loss, but this may have been written off earlier.

Very happy for investors who recieved all their money including interest. Particularly happy for those who had invested prior to default.
nothing personal to those who recieved interest for the default period ( good luck to you) but I do personally object to the PF being utilised to cover interest on a defaulted loan. Interest up to day of default and return of all capital would be enough for me in those circumstances. The PF should be protected and grown to cover capital. More loans defaulted today. More to come under the new rules. 

The email from SS said only that the capital shortfall was made up from the PF. The interest, I suspect, came from Lendy's other resources (since it was an old T&Cs loan)

I agree with you. I was invested well before the default and had gradually reduced my holding before it defaulted, but was unable to shift the last £100 after the default. I was hoping for full return of capital, but did not expect to get any interest unless the property had sold for more than the value of the loan (which it clearly didn't). As it sold for less then the PF should have covered the shortfall in capital only (IMO) - maybe being under the old T&C's is why we had interest as well. I hope this does not set a precedent for future defaults, although I am clearly happy to have received the interest on this occasion. I don't think this is sustainable in the future and sends the wrong message about the risk in investing in these loans. I hope SavingStream will clarify what will happen in the future - ie interest should only be paid if there is excess left after the sale of the property (IMO).

As sexy Steve said, it is likely SS dipped into their own pockets for the interest

Personally, I feel there shouldn't be a PF.  Masks the risks involved, and now the shortfall has been covered in full it only makes the situation worse.  IMHO, everyone should invest with the PF firmly at the back of their mind.

If Lendy Ltd have replenished the PF, as it appears they have from the claim on the web-site that it is still 2% of the loan book, they have paid the whole shortfall, interest and capital.

I think it has been proven that some of the more poorly informed investors around (many were in this boat when they started out, myself to an extent for sure!) will buy into any loan unless and until it is formally defaulted by SS. Look at the 3 loans which have been defaulted today under the new policy - yesterday they sold out very quickly when the PBL 20 capital repayments credited, whereas now I suspect they will not, in some cases purely because the selling loan parts are listed in a separate section of the site... Perhaps the new interest indicators will help, but in the end I suspect not and at least some people will continue to pile into loans on the verge of default. In my opinion it would be more open and transparent of SS to divide its SM into 3 sections: "positive days", "negative days but not yet defaulted" and "defaulted". They don't necessarily need to be in separate tabs, but perhaps just listed in that order on the SM page.

That said, at some point investors do have to take responsibility for their own decisions, and there is certainly sufficient information out there for those who read it to understand the status of each loan (if not all of the underlying risks, as has been discussed a lot on this forum, but I see that as a separate point).