PBL81 - Status Default - March 2017

Back when the loan started the borrower had a buyer for the property subject to various modifications being made, which made the loan look relatively safe. The latest update says that the property is being marketed, which suggests that the original prospective buyer has gone away. (I hope that the modifications requested by that buyer are not the cause of the planning problems. However, since savingstream and their solicitors do not seem to have sought evidence that there was planning permission for the modifications it seems more likely that the modifications were of a nature that did not need planning permission, and the problems were preexisting.)

The question that occurs to me was why werent you aware that one of you loans was going to be in default after 1/3? Did you read the new default policy issued mid-Feb? Were you aware of it? (if you signed up after mid-feb was it made obvious to you on sign up?) (Where is it displayed on the site & why havent T&Cs been updated to reference it?)

These are general questions, not specifically aimed at you, though your answers would be helpful. From your point of view, if you havent seen the default policy there is a link at the top of the updates thread here and that list also has indicators of all loans that will change status within next 7 days (ones with white arrows) and there also a link at the top to the Negative loan excel spreadsheet which gives a months notice of loans that will change status (at bottom)

Well ilmoro
i am a casual investor and have pushed some money towards saving stream and basically left it there to earn 12%, only really looking at it monthly to draw off interest and reinvest if loan repaid. To be honest I didn't even realise we were now lending directly rather than through Lendy let alone read the info on defaut loans. I guess I need to pay more attention and not, as up till now, see it as a simple and easy way to earn a good return!!

Looks like that should be 'isnt' or 'on'

Not totally convinced myself, and in fact originally they were below the line, but they are continuations of previous old structure loans and the charges are still in favour of Lendy so in the absence of evidence to the contrary, I moved them up.

Sales may be expected to slow under the Defaulted tab.

From 1 March you will no longer receive monthly interest on loans >-90D overdue, this loan will now accrue until settlement (tagged as IA, Interest Accruing on the website).

If you cancel your sale you will continue to accrue unpaid interest without interruption although you will lose your position in the sales' queue should you re-sell.

If any loan goes wrong you should not expect automatic compensation from the provision fund:

i) no p2p platform can guarantee this otherwise this would be an insured savings scheme;
ii) you should not assume future defaults will be treated the same as previous ones;
iii) SS have just updated their provision fund wording from being held at 2% of the loan book to being replenished to this level from company cashflows (following the sizeable payout for pbl020).

For this loan SS have supported Planning Permission remediation from its own capital which should be completed within the next 4 weeks and they appear confident there is sufficient equity to repay the loan in full (there are no firm offers yet).

If you wanted to take a subjective view it may be surprising to enforce losses on a loan they have so publicly backed and reiterated equity headroom but you must do your own research and come to your own conclusion.