sl75
Posts: 2,092 
Likes: 1,245
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Post by sl75 on May 15, 2019 9:05:17 GMT
Will we receive April's interest before May's interest is due?? People are saying that Lendy have run out of cash but the borrower is meant to pay the interest upfront and this money isn't (or at least shouldn't) be accessible by Lendy to use for any other purpose than to pay monthly interest to investors... The people saying that Lendy has run out of cash would also seem to be implicitly alleging a gross misappropriation of client funds...
I don't think we've got any direct evidence for or against this (mainly because we don't have the same level of scrutiny over Lendy's internal accounting procedures as would be available to a team brought in by the FCA for example).
What we do have is the FCA's reaction to what they have seen, which seems to be to allow business to continue "as normal" subject to significant restrictions on movements of money.
My own suspicion is that rather than concerns over direct misappropriation of client funds, the FCA is instead concerned over the amounts that Lendy are taking in the form of fees (fully accounted for, but deemed more than is justified). Maybe Lendy are trying some kind of stupid negotiating tactic along the lines of "if you don't approve the payments to ourselves, we're not going to process the client transactions that we included in the same batch"... e.g. Lendy would probably want include the payments to themselves of "fees" for loan parts remaining in the sales queue in the same batch as the "interest payments", and similarly, they'd probably want to include the payments to cover the various fees they charge for overdue loans in the same batch as the distribution of any capital recovered for those loans...
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jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,808
Likes: 3,242
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Post by jonno on May 15, 2019 9:15:04 GMT
Will we receive April's interest before May's interest is due?? People are saying that Lendy have run out of cash but the borrower is meant to pay the interest upfront and this money isn't (or at least shouldn't) be accessible by Lendy to use for any other purpose than to pay monthly interest to investors... The people saying that Lendy has run out of cash would also seem to be implicitly alleging a gross misappropriation of client funds...
I don't think we've got any direct evidence for or against this (mainly because we don't have the same level of scrutiny over Lendy's internal accounting procedures as would be available to a team brought in by the FCA for example).
What we do have is the FCA's reaction to what they have seen, which seems to be to allow business to continue "as normal" subject to significant restrictions on movements of money.
My own suspicion is that rather than concerns over direct misappropriation of client funds, the FCA is instead concerned over the amounts that Lendy are taking in the form of fees (fully accounted for, but deemed more than is justified). Maybe Lendy are trying some kind of stupid negotiating tactic along the lines of "if you don't approve the payments to ourselves, we're not going to process the client transactions that we included in the same batch"... e.g. Lendy would probably want include the payments to themselves of "fees" for loan parts remaining in the sales queue in the same batch as the "interest payments", and similarly, they'd probably want to include the payments to cover the various fees they charge for overdue loans in the same batch as the distribution of any capital recovered for those loans...
Well, either way, I fear the end of the death spiral is looming. I sincerely hope I'm wrong.
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Mucho P2P
Member of DD Central
Posts: 946
Likes: 1,635
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Post by Mucho P2P on May 15, 2019 13:36:17 GMT
Will we receive April's interest before May's interest is due?? People are saying that Lendy have run out of cash but the borrower is meant to pay the interest upfront and this money isn't (or at least shouldn't) be accessible by Lendy to use for any other purpose than to pay monthly interest to investors... The people saying that Lendy has run out of cash would also seem to be implicitly alleging a gross misappropriation of client funds...
I don't think we've got any direct evidence for or against this (mainly because we don't have the same level of scrutiny over Lendy's internal accounting procedures as would be available to a team brought in by the FCA for example).
What we do have is the FCA's reaction to what they have seen, which seems to be to allow business to continue "as normal" subject to significant restrictions on movements of money.
My own suspicion is that rather than concerns over direct misappropriation of client funds, the FCA is instead concerned over the amounts that Lendy are taking in the form of fees (fully accounted for, but deemed more than is justified). Maybe Lendy are trying some kind of stupid negotiating tactic along the lines of "if you don't approve the payments to ourselves, we're not going to process the client transactions that we included in the same batch"... e.g. Lendy would probably want include the payments to themselves of "fees" for loan parts remaining in the sales queue in the same batch as the "interest payments", and similarly, they'd probably want to include the payments to cover the various fees they charge for overdue loans in the same batch as the distribution of any capital recovered for those loans...
" if you don't approve the payments to ourselves, we're not going to process the client transactions that we included in the same batch" <- any regulated company even contemplating going down that route would have their licence suspended, if not terminated, pretty swiftly. I am only aware of one other FCA regulated company recently having limitations placed on its clients funds, that company was in significant debt that was not solving its problems as time went on.
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cam
New Member
Posts: 1
Likes: 2
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Post by cam on May 15, 2019 14:02:51 GMT
no reason not to have interest paid. Lendy outrageously borrowed £1m + from the supposed ring-fenced "Provision Fund". Not sure of the legality of this. Clearly they are far from "well capitalised' as their FD was claiming in an email a few months back.
My instinct is this will never be coming our way and we will see Lendy fold and the culprits reappear with a new venture in the near future.
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Post by pigbreeder on May 15, 2019 14:54:08 GMT
Has anyone heard from the FCA about this non payment?
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Post by sirkillalot on May 15, 2019 16:41:29 GMT
I think the interest run has started
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Post by westcountryfunder on May 15, 2019 16:46:22 GMT
I think the interest run has started Yep, they seem to be finding a few quid down the back of the settee!
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Post by sirkillalot on May 15, 2019 16:51:12 GMT
Now if only I could withdraw it !
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adrianc
Member of DD Central
Posts: 10,026
Likes: 5,152
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Post by adrianc on May 15, 2019 16:55:51 GMT
The email says "April interest paid into your account".
The next email says "Withdrawal request"
Let's see how long...
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epic
Posts: 14
Likes: 4
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Post by epic on May 15, 2019 17:00:15 GMT
Well that was worth the wait... £9.42...wowzer...I'm off to the pub!
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copacetic
Member of DD Central
Posts: 306
Likes: 667
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Post by copacetic on May 15, 2019 17:04:37 GMT
March's interest paid email - "£47.5m paid to date"
April's interest paid email - "£47.5m paid to date"
Maybe time to stop advertising the interest paid to date emails!
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mikeh
Member of DD Central
Posts: 499
Likes: 370
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Post by mikeh on May 15, 2019 17:08:05 GMT
Half way through May and not a single transaction this year yet. Which will come first? A transaction or Brexit? I think DFL012 is my best bet.
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p2p2p
Member of DD Central
Posts: 123
Likes: 114
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Post by p2p2p on May 15, 2019 17:21:19 GMT
The interest paid is on fewer loans, and the sums are much lower than the month before for those loans. Is anyone with a spreadsheet checking the detail and could see a reason why?
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c88dnf
Member of DD Central
Posts: 364
Likes: 266
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Post by c88dnf on May 15, 2019 17:28:37 GMT
I think the interest run has started Yep - mine has arrived. A princely 6.87% of what is theoretically due. Cashier instructed to send it on its way immediately!
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,331
Likes: 11,550
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Post by ilmoro on May 15, 2019 17:33:45 GMT
The interest paid is on fewer loans, and the sums are much lower than the month before for those loans. Is anyone with a spreadsheet checking the detail and could see a reason why? Most of them arent full months as they went negative in April and it was a short month, so 1 day less anyway.
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