awk
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Post by awk on Sept 14, 2015 16:16:41 GMT
So, as of today (14SEP2015), is the new trust structure and provision fund in place? I don't see anything in the T&Cs. Has the structure actually changed, or is it all still just plans and talk?
Also, from a platform risk perspective (ie SS going out of business), there is a section in the risk statement about SS having funds to wind-down the loans and pay out. Does anyone understand how the funds to wind-down existing loans are ring-fenced from the administrators? Presumably, they would have to employ a subset of employees and have rights to the IT platform, etc, etc.
A clearer understanding of how these two risk types (indivual loan defaults and SS going out of business) are mitigated would help me assess just how much money to invest.
many thanks
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Post by meledor on Sept 15, 2015 9:22:46 GMT
Anyone investing in only a few loans and now complaining under the new terms that they are not well diversified was by implication expecting Saving Stream to compensate them for the risk they were taking on had one of their loans defaulted with limited recovery.
I am not sure how such an expectation squares with the limit on liability in the existing terms and conditions to the amount of interest earned rather than the principal.
"12.3 Our liability to you on any basis whatsoever shall not exceed the total amount of revenue earned by Saving Stream in respect of transactions entered into by you through SavingStream.co.uk..." This is an issue that's been around for a while. As ilmoro pointed out, the 'current' Ts&Cs haven't been updated to reflect changes that SS/Lendy have made to their model and statements they've made about their policies, the most significant of which was a commitment made here in the P2PIF -- more than once, IIRC -- that they would use their own resources to cover any losses lenders might be subject to. It has been pointed out -- again more than once, IIRC -- that the Ts&Cs should have been amended to reflect such changes, but that hasn't happened. If an event were to come up that tested the situation, I think you can be sure that the lawyers would be called in and there'd be a big mess to sort out. In that case, I think the winners would be the lawyers! 
Have you seen the size of the resources available (per the last set of accounts) compared with a decent sized loan? Much as there might be a desire to cover losses on such a loan the company would be constrained by the need to prevent the survival of the company itself being put at risk. So while there was a pari passu risk in the highly unlikely event of bankruptcy (see the opening post), it would be in the interest of the company and to the benefit of investors who happened not to be in the loan in question, which hypothetically resulted in a large loss, for the company, in order to avoid bankruptcy,to stick to its T&Cs, regardless of how out of date or in need of amendment we might think they are. Hence my comment about lack of diversification under the existing structure.
However hopefully we will all be operating under the new T&C any day now when the risks are more clearly laid out.
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Monetus
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Post by Monetus on Sept 17, 2015 9:24:46 GMT
Yes it would be great if someone from Savingstream could reply with an ETA on when the new trust structure will be going live.
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Post by meledor on Sept 21, 2015 13:07:19 GMT
The new T&Cs are now up on the Saving Stream website and therefore must be considered operational.
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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 Sept 21, 2015 13:20:11 GMT
So anyone had to tick a box to accept them; seen a loan agreement when investing or buying a loan part?
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Post by pepperpot on Sept 21, 2015 15:23:29 GMT
Email just received; savingstream it reads as though existing loans are not incorporated in the new structure, is this correct? (hopefully will save 100's of emails asking the same thing) |
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registerme
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Post by registerme on Sept 21, 2015 15:25:13 GMT
Makes sense, saves them having to novate everything, and saves people being concerned about risks that have changed on them since the change in Ts&Cs (even if plenty of warning were provided).
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arbster
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Post by arbster on Sept 21, 2015 15:26:21 GMT
Email just received; savingstream it reads as though existing loans are not incorporated in the new structure, is this correct? (hopefully will save 100's of emails asking the same thing) It says that most existing loans will be transferred to the new terms, following consideration and consultation, but that those paying back soon may not, due to the cost/effort of doing so. Details available here: www.savingstream.co.uk/documents/newstructure.pdf
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pom
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Post by pom on Sept 21, 2015 15:36:51 GMT
Email just received; savingstream it reads as though existing loans are not incorporated in the new structure, is this correct? (hopefully will save 100's of emails asking the same thing) What was the subject for your email? Confusingly mine was "Repayment of PBL32"
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arbster
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Post by arbster on Sept 21, 2015 15:38:10 GMT
What was the subject for your email? Confusingly mine was "Repayment of PBL32" Same. Threw me for a minute, til I remembered it was Saving Stream...
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shimself
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Post by shimself on Sept 21, 2015 16:03:52 GMT
It doesn't seem to cover who pays the nominee company (SS Security Holding Ltd) in the event of a Lendy bankruptcy does it? Other than that I'd have thought they qualified for P2pFA membership now?
Thanks SS for a super clear piece of writing, how did you persuade the lawyers to allow such clarity, with not a heretofor or stoppal to be seen?
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Post by savingstream on Sept 21, 2015 16:08:11 GMT
Dagnabbit!
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shimself
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Post by shimself on Sept 21, 2015 16:38:19 GMT
What counts as a "new loan", The loans which aren't drawn down as at today or PBL59 upwards or ..?
Is the bank aware that the provision fund is a sort of client account?
Thanks
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paulgul
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Post by paulgul on Sept 21, 2015 16:44:12 GMT
What was the subject for your email? Confusingly mine was "Repayment of PBL32" I was wondering if it was a correct subject line with a wrong email body or vice-versa, everyone seems to be assuming it was the correct body 
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mikes1531
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Post by mikes1531 on Sept 21, 2015 16:44:38 GMT
Email just received; savingstream it reads as though existing loans are not incorporated in the new structure, is this correct? (hopefully will save 100's of emails asking the same thing) : While I appreciate the attempt at humour, I'd much rather know what is happening with existing loans. - Is the plan still to move them -- except for those about to be repaid -- across to the new trust structure?
- If not, what Ts&Cs do apply to those loans not in the trust?
- How does a website user know which loans are in the trust and which are not?
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