69m
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Post by 69m on Jul 6, 2021 12:30:35 GMT
Source: 2nd Witness Statement of Joint Administrator Damian Webb dated 9/7/2020 (my bold)
67. For example, on a number of loans, collectively known as “the Con****”, the borrower was declared bankrupt during the term of the loan. The FCA considered that it was misleading for Lendy not to have disclosed this information to investors. Particularly in the context of the secondary market where investors could choose to buy and sell loans after completion of the loan, when the borrower’s circumstances may have changed following completion. Therefore, the FCA compelled Lendy to repay all investors who had invested in the Con**** loans on the secondary market after the date of the borrower’s bankruptcy. An unfortunate abbreviation, given that most of Lendy's portfolio deserves to be known as 'the con loans'.
I'm guessing that this was one of those occasions where affected investors had to sign a non-disclosure agreement (if Lendy ever made the repayments)?
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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 Jul 6, 2021 12:36:15 GMT
Hi, Thank you for posting this. Does this mean that the administrators have an obligation to pay out these loans first in ranking above everything else? Unlikely. It just makes you an unsecured creditor of Lendy for that amount. IIRC the statement of affairs included a sum denoted as FCA remediation in creditors. I don't think it counts as a claim in tort which would bump you up the queue.
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ilmoro
Member of DD Central
'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 Jul 6, 2021 12:59:17 GMT
For the record the bankruptcy order date was 25 Jul 2016 (petition filed 29 April 2016) & was published on this forum. At that point the loans were well overdue but refinancing imminently reportedly. When this proved challenging (unsurprisingly for a borrower involving bankruptcy) switched to an ever imminent sale.
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hazellend
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Post by hazellend on Jul 16, 2021 7:32:59 GMT
Over 90% of sale price eaten up by “costs”.
Seriously it would be better just donating some of the properties to charity for nothing.
I do also hope we get to see the costs paid by lendy to make sure it’s genuine.
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jcb208
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Post by jcb208 on Jul 16, 2021 7:37:48 GMT
Absolutely crazy fees. I only had 1p in each of these loans as a marker to say DONT TOUCH,wished i done this with all Lendy loans as this has turned out to be the biggest scam I have ben involved in.I Feel sorry for those invested in these loans
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easynow
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Popcorn anyone?
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Post by easynow on Jul 16, 2021 10:20:06 GMT
I was fortunate enough to get out of Lendy unscathed, but its still soul destroying to see this mess unfolding, I really do feel for those who have had their fingers burnt.
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jcb208
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Post by jcb208 on Jul 16, 2021 10:31:05 GMT
Over 90% of sale price eaten up by “costs”. Seriously it would be better just donating some of the properties to charity for nothing. I do also hope we get to see the costs paid by lendy to make sure it’s genuine. Yep your right I would agree, better to of given all these properties to our chosen charities rather then paying out all these fees
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huxs
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Post by huxs on Jul 16, 2021 11:28:40 GMT
Over 90% of sale price eaten up by “costs”. Seriously it would be better just donating some of the properties to charity for nothing. I do also hope we get to see the costs paid by lendy to make sure it’s genuine. Yep your right I would agree, better to of given all these properties to our chosen charities rather then paying out all these fees This is beyond a joke and Lendy get 3% as a reward on top of the waterfall fees so that we are left with less than 10% of the sale price.
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jcb208
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Post by jcb208 on Jul 16, 2021 12:00:02 GMT
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jul 16, 2021 12:01:53 GMT
Looks like a clear case of fraud.
From the receivers comments:
"A range of offers were received in excess of £3m, but these were rejected by Lendy with the Receivers being
informed that only offers in excess of £4m would be accepted."
It was not in Lendy's interest to get a quick satisfactory outcome, because they hid their T&C's from lenders.
If they had taken advice from the receivers in 2016 the outcome would be considerably better.
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huxs
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Post by huxs on Jul 16, 2021 12:11:16 GMT
Looks like a clear case of fraud. From the receivers comments: "A range of offers were received in excess of £3m, but these were rejected by Lendy with the Receivers beinginformed that only offers in excess of £4m would be accepted."It was not in Lendy's interest to get a quick satisfactory outcome, because they hid their T&C's from lenders. If they had taken advice from the receivers in 2016 the outcome would be considerably better. yes agree £3m in 2016 with minimum costs or £1.4M in 2021 with 90% cost, obviously the decision was not taken in Investor's best interest. Saying that I am not holding any hope that even if fraud could be proved that we would get any more back now. The best we can hope is the waterfall T&C's are reversed but even then I am guessing Lendy still get's its 3% for all their sterling work!!!
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jcb208
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Post by jcb208 on Jul 16, 2021 13:13:04 GMT
Every loan coming back is getting a worse return to investors ,god help mine not had a penny yet.I hope Liam can sleep at night because I would not be able to If this was my company
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