sussexlender
Member of DD Central
Cheat seeking missile
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Post by sussexlender on Dec 1, 2019 17:58:15 GMT
I agree.
No doubt this calculating borrower (and his 2 partners) will transfer ownership of the site to another shell company so he can then challenge any future residual benefit clause that RSM may have added to any contract.
That would cost RSM money to enforce and so it is unlikely that they will act to protect investors. They will no doubt try to have the Administration concluded by then and obtain their own release.
RSM are just playing investors for fools by hinting at a future further return in 48 months time when they will have been paid all their vast fees from the recovered funds and will have moved on to their next profitable winding up.
They will not have anyone monitoring this borrower or any progress on this site in 2023.
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sl75
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Post by sl75 on Dec 2, 2019 16:14:30 GMT
Or do RSM anticipate Lendy will still be under their administration in 2023?   By then, they will hopefully have separated the administration of Lendy itself from the wind-down operation of the loan book (which are confusingly inter-linked right now).
Multi-year recovery periods for at least some loans in a P2P portfolio are to be fully expected. That doesn't necessarily mean it'll be a full-time job for those involved of course. By 2023 I'd anticipate it may well have been delegated to another competent team who also do other collections work for other companies.
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Monetus
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Post by Monetus on Dec 19, 2019 17:07:52 GMT
Now that the 6 month proposals are out you can finally see where your money went sussexlender . The borrower actually refinanced the loan for the full capital amount (plus some interest). The rest was taken by the Lendy "distribution waterfall". Original loan value: 2,100,000
Gross realisation from borrower: 2,150,000
Third-party costs: 9,525 Costs paid by the company: 4263 Lendy Service Fee: 144,373 Lendy Contractual Entitlement: 831,388 Amount received by lenders: 1,160,450 |
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KoR_Wraith
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Post by KoR_Wraith on Dec 19, 2019 17:48:12 GMT
We can only hope that 'Lendy's Contractual Entitlement' is declared unenforceable as it incentivises Lendy to drag out and delay administrative action for its own benefit at the cost of its customers. The conflict of interest could not be clearer.
Brilliant business model, mind you, if it's not illegal.
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Monetus
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Post by Monetus on Dec 19, 2019 18:00:30 GMT
We can only hope that 'Lendy's Contractual Entitlement' is declared unenforceable as it incentivises Lendy to drag out and delay administrative action for its own benefit at the cost of its customers. The conflict of interest could not be clearer. Brilliant business model, mind you, if it's not illegal. We can also only hope that the administrators will legally challenge "Lendy's Contactual Entitlement" on behalf of investors with all of their strength and might in order to prove it unenforceable regardless of the fact that it's clearly in their interests for it to stand and they are obliged to maximise returns for the creditors of Lendy Ltd under the Insolvency Act. As the same administrators and legal personnel are acting for both Lendy Ltd and SSSH (the investors) where will the motivation come from to deem it "unenforceable?" The conflict of interest could not be clearer.
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rocky1
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Post by rocky1 on Dec 19, 2019 18:08:49 GMT
bring on the FCA and the FOS this farce from LB/LENDY needs sorting out once and for all.so the biggest risk to lenders all along was the platform/LB shafting all of us from the very start.
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locutus
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Post by locutus on Dec 19, 2019 19:35:14 GMT
We can only hope that 'Lendy's Contractual Entitlement' is declared unenforceable as it incentivises Lendy to drag out and delay administrative action for its own benefit at the cost of its customers. The conflict of interest could not be clearer. Brilliant business model, mind you, if it's not illegal. It clearly is illegal and will be found as such by any judge that views this case. The fact that RSM are keeping up this charade when they know full well that lender T&Cs will trump the borrower contracts is immoral. There's countless reasons why lenders cannot be bound by terms in a contract they never had sight of, especially one written by a trusted agent to favour themselves. RSM are effectively dragging things out at lender expense until forced to do the right thing. This behaviour by Phillip Sykes, Damian Webb and Mark Wilson is nothing short of shameful.
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quidco
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Post by quidco on Dec 19, 2019 20:17:59 GMT
Well it has to be misselling at the very least as when buying loan parts the LTV is unsufficent expression of risk there should have been information about the affect of these fees on lender's capital over time.
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sam i am
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Post by sam i am on Dec 19, 2019 20:44:39 GMT
We can only hope that 'Lendy's Contractual Entitlement' is declared unenforceable as it incentivises Lendy to drag out and delay administrative action for its own benefit at the cost of its customers. The conflict of interest could not be clearer. Brilliant business model, mind you, if it's not illegal. It clearly is illegal and will be found as such by any judge that views this case. The fact that RSM are keeping up this charade when they know full well that lender T&Cs will trump the borrower contracts is immoral. There's countless reasons why lenders cannot be bound by terms in a contract they never had sight of, especially one written by a trusted agent to favour themselves. RSM are effectively dragging things out at lender expense until forced to do the right thing. This behaviour by Phillip Sykes, Damian Webb and Mark Wilson is nothing short of shameful.
locutus, I do agree with you as you will probably know from my previous posts. However on the other side of this, if RSM just found in favour of the lenders, they would probably have the creditors declaring them shameful (and possibly they already are). I still think that RSM are carefully exploring all legal aspects to ensure that when they do make a statement it is watertight.
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sam i am
Member of DD Central
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Post by sam i am on Dec 19, 2019 21:04:50 GMT
Now that the 6 month proposals are out you can finally see where your money went sussexlender . The borrower actually refinanced the loan for the full capital amount (plus some interest). The rest was taken by the Lendy "distribution waterfall". Original loan value: 2,100,000
Gross realisation from borrower: 2,150,000
Third-party costs: 9,525 Costs paid by the company: 4263 Lendy Service Fee: 144,373 Lendy Contractual Entitlement: 831,388 Amount received by lenders: 1,160,450
What is really scary here is that Lendy aren't even getting anywhere near the full amount of the charges they claim to be owed. The Lendy payment is supposedly proportioned down in the same way the lenders payment is.
At a maximum lenders received 1,160,450 / 2,100,000 = 55.26% of what they were owed and probably far less as this is just the capital amount and doesn't include unpaid interest and bonus interest.
Therefore at an absolute minimum the Lendy claim was at least 831,388 / 0.5526 = £1,504,502 and probably significantly more.
That's even more outrageous than it appears at first sight.
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Monetus
Member of DD Central
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Post by Monetus on Dec 19, 2019 22:44:56 GMT
bring on the FCA and the FOS this farce from LB/LENDY needs sorting out once and for all.so the biggest risk to lenders all along was the platform/LB shafting all of us from the very start. Mr Bailey appears to have got the top job for his efforts.... www.ft.com/content/a65bfdca-2286-11ea-b8a1-584213ee7b2bMerry Xmas all!
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Post by dan1 on Dec 19, 2019 22:56:14 GMT
bring on the FCA and the FOS this farce from LB/LENDY needs sorting out once and for all.so the biggest risk to lenders all along was the platform/LB shafting all of us from the very start. Mr Bailey appears to have got the top job for his efforts.... www.ft.com/content/a65bfdca-2286-11ea-b8a1-584213ee7b2bMerry Xmas all! It would appear that the days of the UK being able to recruit the best are gone. Right, I'm off to use the toilet... unlike all those at the FCA 
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neeps
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Post by neeps on Dec 20, 2019 0:29:10 GMT
bring on the FCA and the FOS this farce from LB/LENDY needs sorting out once and for all.so the biggest risk to lenders all along was the platform/LB shafting all of us from the very start. Mr Bailey appears to have got the top job for his efforts.... www.ft.com/content/a65bfdca-2286-11ea-b8a1-584213ee7b2bMerry Xmas all!  . I'm going to bed before I feckin' explode!!!!!!!!! It's pathetic. Just another example of how failings and failures in the public sector get rewarded. How many times do we see top police chiefs or NHS managers heavily criticised only to be moved sideways or upwards or retired off with an enormous tax payer funded pension. It's high time the likes of Home Secretaries and Chancellors had the guts to sit these numpties down and just plain sack them. This man has proven time & time again that he's not up to the FCA job and now he's going to run Threadneedle Street. Not a very good start Boris!!!!!!!!!!!!!!
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Post by GSV3MIaC on Dec 20, 2019 12:07:25 GMT
Hey, at least Liam didn't get the job (yet). 8>.
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Monetus
Member of DD Central
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Post by Monetus on Dec 20, 2019 12:13:04 GMT
Hey, at least Liam didn't get the job (yet). 8>. There's still a recently-vacated position as CEO of the FCA available for him to snap up...
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. I'm going to bed before I feckin' explode!!!!!!!!!