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Post by mrclondon on Sept 3, 2017 15:09:58 GMT
Hi To any who have concerns about the future of their money following the High Court case: If you wish to speak publicly to the BBC about those concerns then I can be contacted via this email: gareth.furby@bbc.co.uk Gareth Furby BBC TV News London Welcome to the forum gareth , it's always good to see interest from those outside our community of investors. Its perhaps rather early for anyone to have anything more serious than "mild apprehension" concerning these two secured loans. They still have over 4 months to run with interest held on account for that period, and as I type this lenders have only made £68,000 of the £4.5m debt available for purchase. Anyone wanting to exit from their commitment in these loans has only to list it for sale, and it will almost certainly sell over the course of the next few weeks. The loans will likely enter formal recovery on maturity, which could take 18 months to 2 years to resolve, and as things currently stand the debt will still be tradeable for the first 6 months of the recovery period. It could well be late 2019 before any lender knows if they will suffer a financial loss as an indirect result of the recent court actions (high court & bancruptcy court). That said, there is perhaps a much wider underlying point here. Many p2p platforms do not disclose who the borrower is, or in some cases exactly what the secured asset is. Consequently retail investors are being encouraged to invest in loans partially blind as to the risk factors involved on that specific loan. Given the p2p sector is to a large extent servicing borrowers who struggle to get credit through mainstream or challenger banks, it is inevitable that some of the borrowers will have a "colourful" background. The nature of any such "colourful" background and any mitigating circumstances is rarely disclosed by platforms even when a simple web search would reveal it ... and discovering such material should be being done as part of a platform's KYC (know your customer) process. I touched on this withholding of information as a part of a wider discussion of p2p platform ethics in a post last weekend. There is a danger that the media reporting of specific incidents relating to p2p borrowers, and I can cite 3 examples ( the borrower of these H****** loans, the borrowers of the Gloucestershire loans on whom the MoS ran a story today, and the Times journalist's stories last year regarding the Somerset borrower) is far too superficial. None of these three cases have as yet resulted in a lender losing a single penny, and as I've mentioned it is likely to be one to two years before a final loss will be declared (if applicable) in any of these. By then it will be "old news" and unlikely to be of any interest to the mainstream media. As it happens the three borrowers I've mentioned here are all Lendy's, but there are similiarly "colourful" borrowers on other p2p platforms, the background on whom the platforms would prefer we were unaware of. Given we are talking of secured lending here, the platforms claim in defence "focus on the security" not the borrower. That is, at face value, a valid argument. However, valuation of unusual one off assets (aka property) is more of an art than a science. To achieve OMV (open market valuation) on disposal of an asset requires the perfect buyer to be in the market at that precise moment in time. More often than not, assets will need to be sold at a considerable discount to OMV (often refered to as distressed sale valuation or fire sale value) to attract a speculative purchaser who was not in the market for that particular asset at that point in time. p2p loans are generally around 70% LTV with respect to OMV, and are frequently in excess of 100% of a distressed sale valuation. With such fine margins for achieving a full recovery on default, the borrower's integrity (as evidenced by past business practises) is relevant when assessing the overall risk of a loan (i.e. when random bad luck occurs, is the borrower likely to strive to overcome the hurdle and eventually repay the loan, or just shrug and say "oh well, its the lenders who lose out not me").
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twoheads
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Programming
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Post by twoheads on Sept 3, 2017 21:34:39 GMT
I love these two loans! So much that I even invested in them for a while.
It took 23 days to sell out of PBL157 when I put my 'bits' up for sale on 03/07. At that time the queue was £243k; as I write it is £66k but has been zero for much of the intervening period.
I've unashamedly taken my profit and won't be involved again - but I keep watching these two because of the phenomenal interest they created on the forum.
These loans have produced more column inches than any I can think of and I have to say I enjoyed the DD on these more than any other loans I've been involved with. These were the loans that never stopped giving!
Thanks to all who were involved in the banter way back in January, it was great fun. I won't name all the forumites because I'd miss someone out - just thanks to all.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Oct 23, 2017 4:03:24 GMT
Touch of the old insomnia so I have been reading through this gem again for some amusement. Interesting how many (most?) "defended" the VRs & LTVs around the beginning of the year. Tunes seem to have changed somewhat since? Anyway, at 53% & 55% LTVs yer safe as houses.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Oct 23, 2017 5:07:58 GMT
Touch of the old insomnia so I have been reading through this gem again for some amusement. Interesting how many (most?) "defended" the VRs & LTVs around the beginning of the year. Tunes seem to have changed somewhat since? Anyway, at 53% & 55% LTVs yer safe as houses. Count some sheep with me?
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Oct 23, 2017 11:15:17 GMT
I often feel like a sheeple when it comes to P2P investing.
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guff
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Post by guff on Oct 23, 2017 23:06:19 GMT
The loans that just keep giving: According to an informative article in D***M****Z dated **/**/2017, this is a recent photo of D*. S*****'*** P*****.
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oldgrumpy
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Post by oldgrumpy on Oct 24, 2017 12:52:10 GMT
Two pretty videos have appeared on YouTube. Pre-marketing strategy? I wonder if someone has realised some loans are due for repayment in less than three months, on top of that little matter with mis-sold houseboats. Happy M*ckmas Christmas? I wonder. Edit: Huh! False alarm? They're just a "rebranding" of some videos already uploaded in 2013/2014. Does anyone know who the pianist is? The face does seem familiar. He certainly plays well.
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nick
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Post by nick on Nov 9, 2017 10:23:20 GMT
These two loans have just been suspended due to interim charging orders being served on the borrower.......if it looks like a dog, barks like a dog, then its a dog!
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Post by charliebrown on Nov 9, 2017 10:52:06 GMT
These two loans have just been suspended due to interim charging orders being served on the borrower.......if it looks like a dog, barks like a dog, then its a dog! Another one bites the dust Another one bites the dust And another one gone, and another one gone Another one bites the dust...
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Balder
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Post by Balder on Nov 9, 2017 13:47:54 GMT
and yet another example where obviously the character of the borrower doesn't matter Lendy. As we can see the character of Lendy is fast becoming an issue. Remember Paul64 customer perception is essentially reality deserved or not.
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r1200gs
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Post by r1200gs on Nov 9, 2017 14:01:21 GMT
These two loans have just been suspended due to interim charging orders being served on the borrower.......if it looks like a dog, barks like a dog, then its a dog! Yup. And acknowledging this simple truth would have made Lendy a much safer place than it is.
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GeorgeT
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Post by GeorgeT on Nov 9, 2017 14:40:07 GMT
Oh, it's the Swiss abode as well. I saw the update on the website on PBL158 but not for PBL157.
I suppose that's because I used to be in PBL158 but always avoided PBL157 like a bargepole. It's still not one of 'my loans' though. It's one of my ex-loans.
In a way it's surprising these 2 have survived this long before something like this happened.
Edit - Dohh ..... only just noticed there are 2 tabs at the top of Updates ( My Loans + All Loans ) and when I click on All Loans I can see both updates. So I've learnt something today.
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GeorgeT
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Post by GeorgeT on Nov 9, 2017 14:44:44 GMT
These two loans have just been suspended due to interim charging orders being served on the borrower.......if it looks like a dog, barks like a dog, then its a dog! And these 2 loans even eat Pedigree Chum and chase cats.
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Post by chrisuk on Nov 9, 2017 15:09:08 GMT
Oh dear oh dear. The Lendy Receivers must be exhausted!!! Maybe Lendy should just default/suspend all of their loans to save time!! They could even change their name to 'Defaulty'!!
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Post by excalibur on Nov 9, 2017 21:20:18 GMT
What exactly does this mean from Lendy
"Lendy has been served with court documentation confirming that interim charging orders have been entered against the borrower and are to be secured against the property."
They make no mention of how much money is being claimed by the other lender, and is it a fact that Lendy really do have priority over the other lender for the security?
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