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Post by nanniema on May 5, 2016 20:56:44 GMT
A few months ago I stopped investing in LC but not before the bad debts had wiped out the Summer Cashback £100.
The plan was to sit tight, wait to the other investments paid up, collect my £100 and hopefully break even.
As payments are made my investment balance has slowly dipped below the magic £1000 level and as I can not be **sed to try and fathom out the quagmire that is the LC T & C's, and seem to remember that there was a thread concerning this, could some kind soul point me in the direction of the thread.
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min
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Post by min on May 6, 2016 6:24:38 GMT
A few months ago I stopped investing in LC but not before the bad debts had wiped out the Summer Cashback £100. The plan was to sit tight, wait to the other investments paid up, collect my £100 and hopefully break even. As payments are made my investment balance has slowly dipped below the magic £1000 level and as I can not be **sed to try and fathom out the quagmire that is the LC T & C's, and seem to remember that there was a thread concerning this, could some kind soul point me in the direction of the thread. I think it was decided that you have to keep the original £1000 + £100 CB on the platform for a year. Does it all have to be invested is the question?
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ablender
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Post by ablender on May 6, 2016 16:43:53 GMT
Hi nanniema, just to be on the "safe side" (which ever that may be), I am keeping myself invested just over the £1100 minimum with the intention of getting out as soon as the 1 year is over. |
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pom
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Post by pom on May 6, 2016 17:50:33 GMT
A few months ago I stopped investing in LC but not before the bad debts had wiped out the Summer Cashback £100. The plan was to sit tight, wait to the other investments paid up, collect my £100 and hopefully break even. As payments are made my investment balance has slowly dipped below the magic £1000 level and as I can not be **sed to try and fathom out the quagmire that is the LC T & C's, and seem to remember that there was a thread concerning this, could some kind soul point me in the direction of the thread. Ugh I was surprised that you had that many bad debts and then I went and checked mine (they don't exactly make it easy do they?) and found most of my bonus is now also dependent on their recovery processes. Almost makes me nostalgic for FC, at least you could see at a glance which loans were doing badly. I had intended to keep reinvesting until the anniversary, but perhaps will stop rather sooner.
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awk
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Post by awk on May 6, 2016 18:04:38 GMT
A few months ago I stopped investing in LC but not before the bad debts had wiped out the Summer Cashback £100. The plan was to sit tight, wait to the other investments paid up, collect my £100 and hopefully break even. As payments are made my investment balance has slowly dipped below the magic £1000 level and as I can not be **sed to try and fathom out the quagmire that is the LC T & C's, and seem to remember that there was a thread concerning this, could some kind soul point me in the direction of the thread. Ugh I was surprised that you had that many bad debts and then I went and checked mine (they don't exactly make it easy do they?) and found most of my bonus is now also dependent on their recovery processes. Almost makes me nostalgic for FC, at least you could see at a glance which loans were doing badly. I had intended to keep reinvesting until the anniversary, but perhaps will stop rather sooner. I'm in the same position - troubled loans would just about wipe out my bonus. The bit that really annoys me is the lack of communication and reporting on those loans - maybe FC is good at something ! Until I get something from LC, then my accumulating interest is just going to sit there as cash
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Post by nanniema on May 6, 2016 19:05:23 GMT
A few months ago I stopped investing in LC but not before the bad debts had wiped out the Summer Cashback £100. The plan was to sit tight, wait to the other investments paid up, collect my £100 and hopefully break even. As payments are made my investment balance has slowly dipped below the magic £1000 level and as I can not be **sed to try and fathom out the quagmire that is the LC T & C's, and seem to remember that there was a thread concerning this, could some kind soul point me in the direction of the thread. I think it was decided that you have to keep the original £1000 + £100 CB on the platform for a year. Does it all have to be invested is the question?
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Post by nanniema on May 6, 2016 19:16:51 GMT
Thank you min. for the info. Obviously that thread ended with no firm conclusions either.
It would seem that because my investments only total £1064 I have lost my bonus as well.
Ah well looks like it's cash in time - that is put it all on the secondary market and hope that over the next year or so some poor newbie might buy some of it.
Problem is of course that more and more like me will be trying to off-load their's as well before LC collapses.
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adrianc
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Post by adrianc on May 7, 2016 9:08:19 GMT
It would seem that because my investments only total £1064 I have lost my bonus as well.
I'm still showing the £150 bonus - but my invested total is £1074. I wonder... Interest to date is £60 - I wonder if the minimum to keep the bonus is £1000 + interest? I'll give up trying to shift the £40 I've got on the SM, then...
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treeman
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Post by treeman on May 7, 2016 10:36:11 GMT
My investments total is still just above 'initial £1k + bonuses' ...... well, with the 'troubled' loans still included as investments .....
I think I'll stick to the current plan of recycling repayments - £20 at a time into whatever new loans come along; see how the wind blows till the anniversary rolls around, then decide whether to stick or fold.
Maybe the baddies will produce something by way of recovery...........
Nothing ventured and all that.
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pom
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Post by pom on May 7, 2016 12:32:56 GMT
I guess at least the 1yr tie in gives them an opportunity to showcase/develop their recovery processes....  |
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Post by GSV3MIaC on May 7, 2016 15:24:57 GMT
Maybe they'll offer you another cashback for sticking it out for another 12 months?! .. one can always dream ..
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TheDriver
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Post by TheDriver on May 8, 2016 11:57:19 GMT
Hi nanniema ;
from the offer T&Cs, one of the conditions is that:
•the Summer Lender retains all the Loans or Loan Parts into which these funds have been invested for more than 12 months after the date on which the investment threshold to qualify for the Summer Cashback bonus award is reached.
subject to an initial investment of "at least £1000".
Therefore, it seems there is no need to keep the lending over £1000, just not sell any of the original investments before the anniversary of the final qualifying purchase! Seems rather contorted, since they presumably want you to carry on buying over the following 12 months, and presumably sell a bit to help facilitate an active Secondary Market.
So the conditions are explicit that you CANNOT sell any of the former investments and still qualify, which makes selection of sales progressively more fraught unless look back thru transaction statements to see which you bought later - or keep a separate list of these, and not mistakenly sell any original ones. If you just bought the required amount and left it for a year you'd safely qualify, but it almost looks like a condition set up for inadvertent transgression by any active user - intentional or not?
So awk and treeman should be OK, but others may have already disqualified themselves, even if their investment stays over £1000 
maybe a lendingcrowd lendingcrowd lendingcrowd lendingcrowd rep can confirm/clarify - HTH
and Finally, as I only came across LC earlier this year I have no bonus to mitigate my current potential loss of 3 x earnings to date  Hoping recovery procedures are more robust than lending criteria seem to have been. 
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TheDriver
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Post by TheDriver on May 10, 2016 4:41:40 GMT
UPDATE:
Oh dear, I have looked back at the previous thread mentioned, and can see the confusion as it all becomes very muddled. Firstly, despite the T&Cs stating: "There is no alternative to these Terms.", LC quickly posted a response to the original enquiry:
Hi GSV3MIaC , Thanks for your questions about the Bonus Offer T&Cs - apologies that these are somewhat confusing. To qualify for the offer, investors must keep £1000 invested for 12 months - you do not have to retain the original loan parts for this time period. Buying and selling investments will not mean you are penalised from the cashback bonus. As pepperpot says, the restrictions in place relate to withdrawing the funds, not selling investments and re-investing. I hope this helps but if there are any more questions please ask. Kind regards, LendingCrowd which suggests a variation, but has not been noted in the terms. In fact the original terms are clear not "confusing", but I suggest they are either sneaky or incompetent, presumably the latter given LC's statement above.
However, discussion of detailed scenarios relating to the investment going below £1000 - which could be a combination of repayments, trading costs &/or losses - ensued, and a further response from LC appeared:
Hi everyone, We have been monitoring this thread and understand your concerns. We are reviewing the situation and will update you at the start of next week. Have a good weekend, LendingCrowd but it's been a very long weekend for someone because they posted nothing further, and the thread went OT, so as nanniema states there was no definitive conclusion - unless anyone received one of the elusive "email updates"?
The simple solution is to say "investment" must remain over £1000 - which should be achievable if the cashback was re-invested, but then it's not really cashback! and it takes guts to re-invest repayments if losses are a significant issue.
The obvious result could be carnage for LC if someone decides to withdraw their capital and enforce the original T&Cs.
I like the philosophy of LC as a platform, and I guess it's being run be inexperienced personnel with good intentions, but given all the issues perhaps they should have b(r)ought in some more experienced advice before launching their expansion.
So come on lendingcrowd , time for someone to "step up to the plate" before lenders become even more disillusioned
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SteveT
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Post by SteveT on May 10, 2016 7:10:55 GMT
[Mod hat off]
I thought LC's intention was pretty clear from their explanatory post of 26th October. Keep £1000 "invested" (should really be "lent") for a year and you'll keep your bonus. They're unlikely to alienate their lenders by trying to claw back bonuses simply because repayments briefly reduce the lent total below £1000. Conversely, I wouldn't expect to get away with progressively reducing my lent total much below £1000 by not reinvesting repayments at all, even if I kept them on the platform as cash for the remainder of the year.
Could the T&Cs be written more clearly? - Yes. Is there much doubt over what LC reasonably expect of lenders? - No, IMO.
[The much bigger question in my mind is whether / when LC are going to make changes to the way their platform operates, especially their SM, to address the reasons why so many on here have lent nothing beyond the £1000 we deposited to get the bonus!]
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pip
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Post by pip on May 10, 2016 10:28:09 GMT
For me the secondary market is annoying, however this is not what really concerns me.
What concerns me is the level of defaults, and especially the nature of those defaults. Why would anybody invest when your defaults are more than your interest received, especially when they don't declare these defaults for tax purposes and you are restricted as to your exit strategy both with the sign up bonus clauses and the secondary market.
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Hoping recovery procedures are more robust than lending criteria seem to have been. 
