Greenwood2
Member of DD Central
Posts: 4,244
Likes: 2,688
|
Post by Greenwood2 on Apr 16, 2021 10:36:39 GMT
Re NG and the "sponsors'" insurance
It feels to me that there's no money in it for the creditors and administrators. But there is for us. Is there some way we can band together and take it over?
Is there another forum anywhere where this is being discussed? Or a website, as for Lendy's disgruntled lenders? I am surprised that there are so few participants in this thread. If this is the only place that this is being discussed, then there's your answer shimself. There's another thread on the private board, but not a huge amount of activity. I think TC has been in wind down so long now, with just a trickle of returns, that administration hardly seems like much change for lenders. I would assume/hope that the legal action wrt NG loans will continue under the administration, you might think it would be be nearing some sort of resolution by now, we are told ESF should be continuing the wind down of the loan book as planned.
|
|
registerme
Member of DD Central
Posts: 6,196
Likes: 6,006
|
Post by registerme on Apr 16, 2021 12:00:53 GMT
The thing that jumps out of me is what one can interpret from the action of BLN entering administration. By entering administration, because of concern about the claims against them, they're effectively validating those claims / admitting liability - the unwritten commentary is saying "we think we're liable, we don't think we can meet the claims, therefore we're going into administration to protect ourselves". Which probably won't come as a surprise to anybody who's been remotely close to this but hey ho. I can think of one vocal TC supporter on the old TC board who should be eating some humble pie right about now. Not that it will help any lenders out .
|
|
|
Post by paul123 on Apr 16, 2021 16:03:52 GMT
It certainly won’t come as any surprise to those in MoneyThing.
|
|
|
Post by helpis on Apr 16, 2021 17:18:08 GMT
I'm not very knowledgeable with this kind of thing so please forgive me if this is obvious, but
What does this mean in terms of how long till everything is wound down, and how much we might get back from our portfolio? E.g. if I had "10k" in my dashboard which has been stuck there for years, will this change anything?
At this point I would be happy to just be able to write the whole thing off as a loss and have my account closed. I just want it all to be over.
|
|
pikestaff
Member of DD Central
Posts: 2,136
Likes: 1,484
|
Post by pikestaff on Apr 16, 2021 17:41:03 GMT
Before this happened I was guessing 5-7 years for everything to be wound up. I don't expect the administration to add a great deal to this, but the extra layer of costs is going to take a significant bite out of our recoveries.
Edit: Q6 of the FAQ sent with the announcement says:
The Administration of the Company is likely to continue until the remaining loan book has been recovered and monies returned to lenders to the extent that to do so is commercially expedient. [my emphasis] The Administrators have been advised that the collection of the loan book may take up to 5 years to complete. Under UK Insolvency legislation, an Administration lasts up to 12 months but can be extended for further periods, which is envisaged to be the case here.
My take is the administrators will give up sooner than BLN might have, and that we will have closure in 5 years.
|
|
Greenwood2
Member of DD Central
Posts: 4,244
Likes: 2,688
|
Post by Greenwood2 on Apr 16, 2021 19:19:59 GMT
It certainly won’t come as any surprise to those in MoneyThing. Are you saying this is linked to an MT loan that is in also trouble. I think I remember there is one that is common to both platforms
|
|
Greenwood2
Member of DD Central
Posts: 4,244
Likes: 2,688
|
Post by Greenwood2 on Apr 16, 2021 19:25:38 GMT
The thing that jumps out of me is what one can interpret from the action of BLN entering administration. By entering administration, because of concern about the claims against them, they're effectively validating those claims / admitting liability - the unwritten commentary is saying "we think we're liable, we don't think we can meet the claims, therefore we're going into administration to protect ourselves". Which probably won't come as a surprise to anybody who's been remotely close to this but hey ho. I can think of one vocal TC supporter on the old TC board who should be eating some humble pie right about now. Not that it will help any lenders out . Or just saying they can't afford to fight the claims because they have virtually no funds.
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Apr 16, 2021 19:39:19 GMT
Is there another forum anywhere where this is being discussed? Or a website, as for Lendy's disgruntled lenders? I am surprised that there are so few participants in this thread. If this is the only place that this is being discussed, then there's your answer shimself. There's another thread on the private board, but not a huge amount of activity. I think TC has been in wind down so long now, with just a trickle of returns, that administration hardly seems like much change for lenders. I would assume/hope that the legal action wrt NG loans will continue under the administration, you might think it would be be nearing some sort of resolution by now, we are told ESF should be continuing the wind down of the loan book as planned. But what we've found out is that administrators don't much care about mere investors. Their legal obligation is to creditors. They don't mind corresponding with lawyers because they charge say £500 an hour for doing so, but I don't think there's any difference for them between winning and losing.
|
|
|
Post by GentlemansFamilyFinances on Apr 16, 2021 19:39:38 GMT
I've wound down my investments in TC over the last maybe 5 years - thank goodness I ended up actually getting all of my money back that I put in and a bit more. But it could have been so much worse - so many investments were bad, crazy lending to cowboys who (it appears) just ran off with our money and TC seemed to be unable to act. I have 77p in my account but their sh*tty website won't let me withdraw it because it's less than £1. I'll be logging in every month to withdraw what monies are paid in for a few more years (after all, I have a 5 figure sum of "assets" in my account)
|
|
pikestaff
Member of DD Central
Posts: 2,136
Likes: 1,484
|
Post by pikestaff on Apr 16, 2021 20:13:59 GMT
It certainly won’t come as any surprise to those in MoneyThing. Are you saying this is linked to an MT loan that is in also trouble. I think I remember there is one that is common to both platforms The common loan is M********* Road Dev******** One Limited.
|
|
pikestaff
Member of DD Central
Posts: 2,136
Likes: 1,484
|
Post by pikestaff on Apr 16, 2021 22:31:34 GMT
There's another thread on the private board, but not a huge amount of activity. I think TC has been in wind down so long now, with just a trickle of returns, that administration hardly seems like much change for lenders. I would assume/hope that the legal action wrt NG loans will continue under the administration, you might think it would be be nearing some sort of resolution by now, we are told ESF should be continuing the wind down of the loan book as planned. But what we've found out is that administrators don't much care about mere investors. Their legal obligation is to creditors. They don't mind corresponding with lawyers because they charge say £500 an hour for doing so, but I don't think there's any difference for them between winning and losing.
Including us, surely, to the extent we have valid claims against the company? I think we have a pretty good claim for NG, at least.
|
|
|
Post by helpis on Apr 16, 2021 22:38:59 GMT
I'm not very knowledgeable with this kind of thing so please forgive me if this is obvious, but
What does this mean in terms of how long till everything is wound down, and how much we might get back from our portfolio? E.g. if I had "10k" in my dashboard which has been stuck there for years, will this change anything?
At this point I would be happy to just be able to write the whole thing off as a loss and have my account closed. I just want it all to be over.
Does anyone know how long we might have to wait for the whole to be closed off? And what we could expect to get back. I already assumed nothing from here on out. Depressingly.
|
|
|
Post by paul123 on Apr 17, 2021 7:23:46 GMT
It certainly won’t come as any surprise to those in MoneyThing. Are you saying this is linked to an MT loan that is in also trouble. I think I remember there is one that is common to both platforms Sorry no. Just that MT put themselves in administration to protect themselves from legal action. Or something.
|
|
paul911
Confusion will be my epitaph...
Posts: 38
Likes: 9
|
Post by paul911 on Apr 17, 2021 9:18:35 GMT
There's another thread on the private board, but not a huge amount of activity. I think TC has been in wind down so long now, with just a trickle of returns, that administration hardly seems like much change for lenders. I would assume/hope that the legal action wrt NG loans will continue under the administration, you might think it would be be nearing some sort of resolution by now, we are told ESF should be continuing the wind down of the loan book as planned. But what we've found out is that administrators don't much care about mere investors. Their legal obligation is to creditors. They don't mind corresponding with lawyers because they charge say £500 an hour for doing so, but I don't think there's any difference for them between winning and losing. —————————————————————————————————————————————————————————————————————— The FAQ’s state that lenders are being treated as “contingency creditors”. I’ve never heard the term before but hopefully this gives lenders some kind of priority.
I have no experience of this type of administration but I can’t imagine that BLN have much in the way of specific trade creditors (surely not ESF.....!) so hopefully revenue to feed the Admin costs can come from, for example, the exit fees for CY & B and others. This would hopefully allow them to recover and return in full (whatever full looks like) to lenders.
Whether they will have sufficient funds - or sufficient enthusiasm - to chase the likes of NG remains to be seen.
|
|
pikestaff
Member of DD Central
Posts: 2,136
Likes: 1,484
|
Post by pikestaff on Apr 17, 2021 10:37:43 GMT
The FAQ’s state that lenders are being treated as “contingency creditors”. I’ve never heard the term before but hopefully this gives lenders some kind of priority. I have no experience of this type of administration but I can’t imagine that BLN have much in the way of specific trade creditors (surely not ESF.....!) so hopefully revenue to feed the Admin costs can come from, for example, the exit fees for CY & B and others. This would hopefully allow them to recover and return in full (whatever full looks like) to lenders. Whether they will have sufficient funds - or sufficient enthusiasm - to chase the likes of NG remains to be seen. Contingent creditors means simply that if we have any valid claims against the company (for example if it were found liable for some or all NG losses) we will be creditors in respect of those claims. I think it's important to make a claim when they ask (see Q7 of the FAQ). If you don't ask, you probably won't get. (There are instances where live companies have made all lenders whole, when the FOS/FCA has found them to be at fault. It's not impossible that this could apply here, in which case all lenders would have a claim, but I would not rely on it.) CY&B exited before the administration. The lenders' share of that fee is unambiguously ours, as are our principal and interest paid. If (like me) you didn't get it out in time, there will be a wait while they do their client money reconciliations and AML stuff but we should get it in full. [Edit: I'm no longer sure about this, see www.ftadviser.com/your-industry/2018/07/31/how-investors-can-protect-client-money/ .]What cut the administrators take on future recoveries (including exit fees) remains to be seen.
|
|