PBL120 - S** Building, Newcastle-U-Lyme - DEFAULT RECOVERED

[replying to a comment on another thread that's more relevant here - NB I've not followed the detail of the pages of intermediate posts since I last contributed to this thread, so might be out of sync with what's previously been discussed]

Besides anywhere else, it's shown in the "bonus accrual" column on the relevant loan parts. PBL120R1 shows 0%, PBL120R2 shows 1.5%, and PBL120R3,4 show 2.5%. You can also see it on current outstanding loans, where bonus accrual is clearly stated as 0% for all loans less than a month outstanding, and for loans with a 12% interest rate always jumps up in 0.5% increments.

I would suggest that in whatever discussions you're having with customer services, it would be best to initially focus on what their systems clearly state you are due, rather than the amount you think should be due.


However, I'd also like to zoom out a bit to the bigger picture - as I see the timeline:

1. Lendy provide the borrower with a settlement quote, presumably stated to include all outstanding interest and charges.
2. The borrower pays that money.
3. [24/05/2018] Lendy pass on the full capital balance and the interest and bonus that the systems showed as due on that capital balance.
4. [25/05/2018] Lendy make a further payment based on the accrued interest for PBL120R1 to R4.
5. Some lenders start demanding more money, as PBL120R2 to R4 show an accrued bonus too.


Step 3 missed out some of the payments.
Due to the relative priority of the payments any payment towards a bonus implies that all interest and capital must have been settled in full.

Step 4 corrected the error that some bonus had been paid without having paid all interest due by ensuring that all interest had indeed been paid in full. It did not pay the bonus that is shown as attached to those loan parts.


The borrower undoubtedly has documented proof that they paid the full amount that was stated as the settlement sum, and cannot be obliged to pay anything more now even if the amount had been "incorrect".

A big question is whether Lendy made the initial error in step 1 or in step 3.
Some of the discussion appears to assume that the initial error was in step 3 - that Lendy are sitting on a big pile of cash from the borrower and refusing to distribute it to its rightful owners.

If it was in step 1, then it could be that Lendy itself had to subsidise the borrower's payment in order to ensure that all interest payments had in fact been met in full as required (the alternative being a very unpopular move of reversing the bonus transactions), and that in fact the borrower had NOT paid enough to settle the whole loan including all accrued interest and bonuses.

Either way, I benefited from an error that was made when calculating the interest to pay in step 4, as I was only due interest from the date the loan parts were created (3 months from November to February), but was in fact paid an amount of interest equivalent to what would have accrued from the date the original loan became overdue (in July, making it 7 months interest? I had the figures and dates more precisely at the time...). The bonus shown on those loans is less than the overpayment of interest, so I'm sure you can appreciate my reluctance to demand that Lendy correct all errors in those payments, or to get involved further here.
[Edit: for clarification - the overpayment of interest I refer to in the above paragraph is not something everyone will have seen - only those who bought loan parts after the initial due date of the loan - after R1 and R2, I'd sold my existing loan parts and bought a new one]

I have a reminder to email them every 2 days and will continue to do so until I get a response. I suggest others do the same.

I have also not received a reply. I have emailed again stating that I do not believe they are taking this issue seriously and if I do not receive a satisfactory final response within 10 working days I will without further notice raise a formal FCA complaint about their client accounting systems not being fit for purpose, based on this loan and PBL108 (the only other default I have held) and incorrect interest and bonus being displayed on historical loan information.

As I have said in a previous post on this thread the interest has been calculated using the formula repayment date - minus default date - 1 day times 1% irrespective of when the loan part was purchased (and presumably sold, but cannot confirm). This is a concatenation and mix of the two correct formulas that should have been used.  Those holding loan parts at default date are correctly claiming no bonus has been paid, and Lendy are trying to wriggle out paying it, hence a different argument is being made. I am not complaining about that directly, but about the incorrect formula used for everyone, something they cannot justify or wriggle out of.

I suggest everyone threatens an FCA complaint, and carries the threat through.

I know the procedures. I will make a complaint under the FCA rules, which means they know where it will lead. Just saying 'I wish to complain about' may not get treated in the same way.

My calculation seems near enough to what lendy paid me. £7 short so not going to waste my time with lendy. If only my other loans would repay in the next 24 months.

Thank you Lendy for doing the right thing. Bonuses to be paid in full. Lendy are obviously listening, learning and improving.

I don't think that they had much choice. I don't agree that this is a change to their stated policy (but this may highlight that the policy could have been better written if a bonus was never intended to be paid in this situation), but in any event the flood of complaints they'd have received which would have been escalated to the Ombudsman would probably have cost more to defend than simply keeping investors happy (at least on this point - investors remain unhappy on many other points).