|
|
Post by brightspark on Mar 11, 2018 18:52:01 GMT
Has anyone talked about the mis-selling of this loan to the public by Lendy ? Along with other loans. My view and I am sure it will be that of all more savvy investors is that Lendy's Terms and Conditions place the entire onus for deciding in which loans to invest entirely with lenders. Lendy's role is simply to introduce lenders to borrowers. They subsequently manage the process of the loan including recovery action where necessary. Nothing in their descriptive of individual loans is necessarily true though one hopes it is provided in good faith. Thus when loans go sour it is incorrect to argue that they were mis-sold per se. Likewise when loans do not perform to expectations Lendy terms and conditions allow them to take what further actions they deem necessary. i.e. they have carte blanche. You as a lender may well feel these terms represent unfair practice as they are so all-encompassing and let Lendy off the hook completely. If so you could take the matter up via local Trading Standards. Otherwise protections are as much due diligence as practical and diversify investments as much as is reasonable both within and outside of the Lendy platform. That said I have a stake in this loan and am not a particularly happy bunny about it going pear shaped so early in the lending process. At least Lendy have moved relatively speedily to seize the asset and hopefully it will sell soon. Recovery - 30% if we are lucky?
|
|
|
|
Post by peterpea on Mar 11, 2018 19:04:56 GMT
Has anyone talked about the mis-selling of this loan to the public by Lendy ? Along with other loans. My view and I am sure it will be that of all more savvy investors is that Lendy's Terms and Conditions place the entire onus for deciding in which loans to invest entirely with lenders. Lendy's role is simply to introduce lenders to borrowers. They subsequently manage the process of the loan including recovery action where necessary. Nothing in their descriptive of individual loans is necessarily true though one hopes it is provided in good faith. Thus when loans go sour it is incorrect to argue that they were mis-sold per se. Likewise when loans do not perform to expectations Lendy terms and conditions allow them to take what further actions they deem necessary. i.e. they have carte blanche. You as a lender may well feel these terms represent unfair practice as they are so all-encompassing and let Lendy off the hook completely. If so you could take the matter up via local Trading Standards. Otherwise protections are as much due diligence as practical and diversify investments as much as is reasonable both within and outside of the Lendy platform. That said I have a stake in this loan and am not a particularly happy bunny about it going pear shaped so early in the lending process. At least Lendy have moved relatively speedily to seize the asset and hopefully it will sell soon. Recovery - 30% if we are lucky? Do you not think that the information supplied by Lendy should be correct when you make your investment decision ?
|
|
rrrupert
Member of DD Central
Posts: 121 
Likes: 99
|
Post by rrrupert on Mar 11, 2018 21:42:47 GMT
My view and I am sure it will be that of all more savvy investors is that Lendy's Terms and Conditions place the entire onus for deciding in which loans to invest entirely with lenders. Lendy's role is simply to introduce lenders to borrowers. They subsequently manage the process of the loan including recovery action where necessary. Nothing in their descriptive of individual loans is necessarily true though one hopes it is provided in good faith. Thus when loans go sour it is incorrect to argue that they were mis-sold per se. Likewise when loans do not perform to expectations Lendy terms and conditions allow them to take what further actions they deem necessary. i.e. they have carte blanche. You as a lender may well feel these terms represent unfair practice as they are so all-encompassing and let Lendy off the hook completely. If so you could take the matter up via local Trading Standards. Otherwise protections are as much due diligence as practical and diversify investments as much as is reasonable both within and outside of the Lendy platform. That said I have a stake in this loan and am not a particularly happy bunny about it going pear shaped so early in the lending process. At least Lendy have moved relatively speedily to seize the asset and hopefully it will sell soon. Recovery - 30% if we are lucky? Do you not think that the information supplied by Lendy should be correct when you make your investment decision ? What information do you feel was incorrect with this loan?
|
|
|
|
Post by harryvederci on Mar 11, 2018 21:44:41 GMT
I assume the planning permission expired in August 2017 (ie 3 years from date of decision) without all the pre commencement conditions being met, or the scheme being implemented by demolitions?
|
|
rrrupert
Member of DD Central
Posts: 121
Likes: 99
|
Post by rrrupert on Mar 11, 2018 22:14:34 GMT
"01/03/2018 The LPA Receiver is continuing to meet with parties interested in acquiring the property. The marketing of the property has now been agreed and it is to be launched in the open market this week." Has anyone stumbled across where this property is to be/being marketed/auctioned or whatever yet? It is undated. So possibly an historic sale. But it is certainly the right building. You will need to fill in the starred out bits on the url. Or just search Allied property Investments.
|
|
|
|
Post by peterpea on Mar 12, 2018 9:24:32 GMT
What information do you feel was incorrect with this loan? The introductory sales page on the website stated 37% Loan To Value when it was actually 70% to 80%. Investors purchased in the belief that Lendy`s information was correct when in fact it was a lie.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Mar 12, 2018 9:48:20 GMT
What information do you feel was incorrect with this loan? The introductory sales page on the website stated 37% Loan To Value when it was actually 70% to 80%. Investors purchased in the belief that Lendy`s information was correct when in fact it was a lie. The loan summary page for DFL017 clearly states that 37% represents "Loan to GDV", which is how Lendy presents all of its DFLs (however daft that is). If you did not even read the loan summary, let alone read and understand the Valuation Report provided, are you really surprised that the FOS is siding with Lendy?
|
|
|
|
Post by brightspark on Mar 12, 2018 9:56:58 GMT
I would caution that it is unwise to state in public information believed to be incorrect as a "lie" as that impugns the integrity of the person or organisation making the statement. Some if not most of the information that all platforms put into the public domain for the benefit of potential investors is derived from information provided by borrowers. I would reiterate my earlier point that in its T &C's Lendy (and other platforms likewise) absolve themselves of any responsibility for the accuracy of information provided. It is a reasonable position to adopt as to check every fact would be very onerous, Even systematic due diligence does not guarantee that all the skeletons in the cupboard are revealed. We investors look like being caught out on this one - hence my earlier enquiry as to anyone having knowledge of the current placing of the property on the market. Judging by the deathly silence it still hasn't happened - perhaps something is going on in the background - time for a further Lendy announcement perhaps?
|
|
|
|
Post by peterpea on Mar 12, 2018 10:15:12 GMT
The loan summary page for DFL017 clearly states that 37% represents "Loan to GDV", which is how Lendy presents all of its DFLs (however daft that is). If you did not even read the loan summary, let alone read and understand the Valuation Report provided, are you really surprised that the FOS is siding with Lendy? Correcting the information later in the sale process does not excuse the misleading initial information. Many people decide on the info provided on the first page and trust that to be accurate, the second page where the "buy" button is located then changes from LTV to GDV, which is a stealth action at the very least. I did not see the change (why would I think that would happen ?) and hit the buy button. I am not obliged to read the VR or anything else. Been with them a long time and knew how it all worked, I don`t need to know anything else, I am happy with the LTV being 37%. The FOS do not seem to realise that ALL the information needs to be correct not just some of it. Particularly the "headline" information which is the most important part to get right as evidently this can MISLEAD investors. Also there is no obligation to read VR etc, there is no obligation in the T`s & C`s. I didn`t know I had to look out for misinformation, I trusted Lendy to give correct information. All this is against FCA rules.
You are absolutely correct about the way they calculate their GDV simply because this figure is never true as in order to get to the final value more cash has to be entered always keeping the LTV up at around 70%. They don`t seem to understand that calculation need to be always current value never projected value as the project may never reach fruition , as in the case of this project.
Lendy can`t make loans on `Jam Tomorrow` basis, they have to keep thing real and in the now.
A bank would never lend me money on what my house might be worth in 10 yrs time ?? Current value it always has to be. I have explained this to the FCA but they appear deaf and blind to their own rules and common sense.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Mar 12, 2018 10:31:16 GMT
The loan summary page for DFL017 clearly states that 37% represents "Loan to GDV", which is how Lendy presents all of its DFLs (however daft that is). If you did not even read the loan summary, let alone read and understand the Valuation Report provided, are you really surprised that the FOS is siding with Lendy? Correcting the information later in the sale process does not excuse the misleading initial information. Many people decide on the info provided on the first page and trust that to be accurate, the second page where the "buy" button is located then changes from LTV to GDV, which is a stealth action at the very least. I did not see the change (why would I think that would happen ?) and hit the buy button. I am not obliged to read the VR or anything else. Been with them a long time and knew how it all worked, I don`t need to know anything else, I am happy with the LTV being 37%. The FOS do not seem to realise that ALL the information needs to be correct not just some of it. Particularly the "headline" information which is the most important part to get right as evidently this can MISLEAD investors. Also there is no obligation to read VR etc, there is no obligation in the T`s & C`s. I didn`t know I had to look out for misinformation, I trusted Lendy to give correct information. All this is against FCA rules.
You are absolutely correct about the way they calculate their GDV simply because this figure is never true as in order to get to the final value more cash has to be entered always keeping the LTV up at around 70%. They don`t seem to understand that calculation need to be always current value never projected value as the project may never reach fruition , as in the case of this project.
Lendy can`t make loans on `Jam Tomorrow` basis, they have to keep thing real and in the now.
A bank would never lend me money on what my house might be worth in 10 yrs time ?? Current value it always has to be. I have explained this to the FCA but they appear deaf and blind to their own rules and common sense. I'm sorry, but you're kidding yourself if you think that argument is going to win the day with the FOS. There is no formal legal definition of how "LTV" must be calculated and so nothing that Lendy can be held liable for. Unless you know how the L and the V have been arrived at, drawing any conclusions from a quoted LTV figure is impossible. Even within the world of P2P, different platforms use different approaches for calculating LTV (Lendy use 2 different approaches themselves, one for PBLs and another for DFLs). On the plus side, at least Lendy include retained interest within their "L" figures, inflating the LTV, whereas Funding Secure (for example) don't retain interest and so would quote a lower LTV on an otherwise identical loan. There are plenty of warnings in Lendy's T&Cs about the risks you take on when you choose to lend with them. If you paid no attention to these (nor even to the information provided about the loan on the summary page), I'm afraid you've only yourself to blame. Caveat Emptor
|
|
|
|
Post by peterpea on Mar 12, 2018 11:17:14 GMT
I would caution that it is unwise to state in public information believed to be incorrect as a "lie" as that impugns the integrity of the person or organisation making the statement. Some if not most of the information that all platforms put into the public domain for the benefit of potential investors is derived from information provided by borrowers. I would reiterate my earlier point that in its T &C's Lendy (and other platforms likewise) absolve themselves of any responsibility for the accuracy of information provided. It is a reasonable position to adopt as to check every fact would be very onerous, Even systematic due diligence does not guarantee that all the skeletons in the cupboard are revealed. We investors look like being caught out on this one - hence my earlier enquiry as to anyone having knowledge of the current placing of the property on the market. Judging by the deathly silence it still hasn't happened - perhaps something is going on in the background - time for a further Lendy announcement perhaps? It is not the borrowers information that is at fault, it is Lendy`s for which they are responsible.
|
|
stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
Likes: 945
|
Post by stub8535 on Mar 12, 2018 11:29:35 GMT
I would caution that it is unwise to state in public information believed to be incorrect as a "lie" as that impugns the integrity of the person or organisation making the statement. Some if not most of the information that all platforms put into the public domain for the benefit of potential investors is derived from information provided by borrowers. I would reiterate my earlier point that in its T &C's Lendy (and other platforms likewise) absolve themselves of any responsibility for the accuracy of information provided. It is a reasonable position to adopt as to check every fact would be very onerous, Even systematic due diligence does not guarantee that all the skeletons in the cupboard are revealed. We investors look like being caught out on this one - hence my earlier enquiry as to anyone having knowledge of the current placing of the property on the market. Judging by the deathly silence it still hasn't happened - perhaps something is going on in the background - time for a further Lendy announcement perhaps? It is not the borrowers information that is at fault, it is Lendy`s for which they are responsible. you have been advised against using the word lie as it implies Lendy had knowledge of falsehood at the time of display of the data. People are asking you to be careful as this is a public forum. It is read by platform reps.
|
|
elsee
Member of DD Central
Retired:D
Posts: 201 
Likes: 117
|
Post by elsee on Mar 12, 2018 12:50:25 GMT
I have discovered you can "block" people. Very useful.
|
|
|
|
Post by peterpea on Mar 12, 2018 13:54:48 GMT
It is not the borrowers information that is at fault, it is Lendy`s for which they are responsible. you have been advised against using the word lie as it implies Lendy had knowledge of falsehood at the time of display of the data. People are asking you to be careful as this is a public forum. It is read by platform reps. As a precaution I won`t use the word lie again. Lendy DOES have knowledge of falsehood at the time of display as they have repeated the same "mistake". They still do this the last time I looked at new loans available. I have informed them of their misleading information but they do nothing. FCA rules state that financial offers must not be misleading. Words have legal meanings. I am being lead by false information into making an incorrect decision for me. i.e. misled. The FOS can`t see that as plain as it is.
|
|
elliotn
Member of DD Central
Posts: 3,064
Likes: 2,681
|
Post by elliotn on Mar 12, 2018 14:00:00 GMT
peterpea you have been advised against using the word lie as it implies Lendy had knowledge of falsehood at the time of display of the data. People are asking you to be careful as this is a public forum. It is read by platform reps. As a precaution I won`t use the word lie again. Lendy DOES have knowledge of falsehood at the time of display as they have repeated the same "mistake". They still do this the last time I looked at new loans available. I have informed them of their misleading information but they do nothing. FCA rules state that financial offers must not be misleading. Words have legal meanings. I am being lead by false information into making an incorrect decision for me. i.e. misled. The FOS can`t see that as plain as it is. What's the difference between a lie and a falsehood?
|
|
