DFL001 - Exeter Loan 1 - DEFAULT

For Lendy, per their own policy, a default can only occur at -180 days, so its automatic.

Different platforms have their own policies. The main issue with Lendy is those loans it has Suspended, due to some "event", but not defaulted as they have not reached -180 days - these loans truly are invisible to most lenders unless you go into to loan details where it will say that trading in the loan is suspended. It may, or may not, give a good reason.

Does anyone have any idea whether this 'default' could appear in the capital losses in ones tax statement or is that a bit early at the moment ?

I’ve got a 5 figure sum invested in Exeter, so I’m understandably a bit worried.

I don’t see any light at the end of the tunnel on this loan; it’s perhaps one of the biggest p2p disasters across all platforms. It’s certainly my own personal biggest p2p disaster (so far).

The only glimmer of hope I have read on this thread it’s that this loan is under old T&C and as such Lendy themselves are implicated. Do board members think this is an avenue that we who are invested might pursue? Or do you think Lendy would quickly wriggle out of their own liabilities?

Whatever happens I foresee months or years of procrastination and obfuscation by Lendy on this, meaning any value in what has been built on site is rotting away to zero.

charliebrown, just so you know you're not the only one in this boat, I too am 5 figure deep into the Exeters and also my biggest p2p disaster (like you say .. so far). The Lendy implication, for me is a possible avenue for compensation depending on how it goes. I believe it will be cheaper and much less hassle for Lendy to pay up anyway, so I doubt we'll get there. But if we do, the more appropriate course will be a class action (a bit like in the US), which has now become a possibility in the UK since 2015. There are technical requirements for setting up such a case, however even if we do not satisfy the requirements for a typical class action, then we can still do a group litigation where we share the risks, costs and collective strength. Some lawyers (if not most/all) will be able to work in a way that have similar benefits to class actions anyway.

I understand dualinvestor's concerns regarding Lendy's stability in trading. However, we have to breakdown the issue to understand the (reduced) risk to Lendy here:

1. Firstly, if Lendy can't find any better there's still avenue of 6M of liquidity for this loan. So the Default's due can reduced by 6M and that takes a good percentage off.
2. Secondly what we'll be suing against isn't for the whole 10-11M but for about 4M (unpaid or dismissed liability by Lendy)
3. The above (4M) is easily consumed by a year's earnings from Lendy (especially when this is offset against tax for the affected year and forward). 

So I agree there's concerns but I think (or would like to believe), this will not be a disaster for everyone (except the borrower's, unless his offer is accepted). 

Risk.

Would you lend your money to a company which had not filed its accounts at Companies House within the 9 month period after financial year end, and only filed its confirmation statement late after being issued with a statutory striking off notice?

Why are we still investing money here? On balance, is the risk worth the 12%? It doesn’t feel like it to me anymore. 

My policy is something along the lines "Don't bite the hand that feeds".   When all my investments are out of Lendy (which may take years), the gloves are off  :-)