Mr_N
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Post by Mr_N on Nov 7, 2018 21:43:12 GMT
I've only seen this as a popup on the website and no email alert. I've a suspicion a large part of Lendy's customer base only login once a month to collect their interest run, and so will only find out in December - whoever writes next months newsletter is going to have to earn their pay! Same here. No email to advise me of the situation, no email to advise me to log in, and of course we're no longer getting our monthly investor emails. I only found out because I came here. Has anyone proposed legal action against LY yet? This entire situation is grossly out of control. If I am not satisfied by the end of the month that this investment has had any further meaningful update, or lack thereof, that's precisely what I will be doing via the CC, before they make Director's loans of any further assets they may have remaining.
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Mr_N
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Post by Mr_N on Nov 7, 2018 21:44:42 GMT
I've only seen this as a popup on the website and no email alert. I've a suspicion a large part of Lendy's customer base only login once a month to collect their interest run, and so will only find out in December - whoever writes next months newsletter is going to have to earn their pay! They said in their previous email that they are no longer going to be sending out the monthly updates, having only recently gone from weekly to monthly.
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nyneil
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Post by nyneil on Nov 7, 2018 22:03:52 GMT
Lendy Support I also wish to complain that i did not, and would not have, signed up to a second charge investment and am wholly opposed to downgrading our status in this project. If this were to proceed and subsequently the borrower defaulted on the new first charge loan, or the final GDV was much less than predicted, we would likely suffer a considerable capital loss. The very least i would consider would be for the third party finance to be pari passu to ours; if that is not possible, it may well be more productive to force administration, and let the professionals sort this out. Further, if the interest has already been paid on account, lenders should continue receiving it until the end of the loan term. Meanwhile, a full explanation is needed as to why you considered this move to be necessary.
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nyneil
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Post by nyneil on Nov 7, 2018 22:18:38 GMT
lend I also wish to complain that i did not, and would not have, signed up to a second charge investment and am wholly opposed to downgrading our status in this project. If this were to proceed and subsequently the borrower defaulted on the new first charge loan, we would likely suffer a considerable capital loss. The very least i would consider would be for the third party finance to be pari passu to ours; if that is not possible, it may well be more productive to force administration. Further, if the interest has already been paid on account, lenders should continue receiving it until the end of the loan term. Meanwhile, a full explanation is needed as to why you considered this move to be necessary. You might want to check who you have tagged, I suspect they are just an innocent bystander. Thanks Badly Drawn Stickman, I've corrected the typo.
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Post by oweno on Nov 7, 2018 22:41:52 GMT
I agree completely with everything that's been said re: not being demoted to a 2nd charge, and that the already paid interest should continue to be paid out until the end of the term.
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hazellend
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Post by hazellend on Nov 7, 2018 23:26:29 GMT
Lendy continue with their scorched earth policy.
The interest is our money and must be paid. As the loan is frozen Lendy should just pay out the retained interest now as a lump sum.
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dovap
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Post by dovap on Nov 7, 2018 23:30:29 GMT
There is every possibility of losing 75% of value of investment on this after the second charge based on the business investment valuation of the site, look at dfl05 which has a LTV of ~50% and is struggling to get finance. This is a far inferior site. Well we're making progress, a few minutes ago it was a likely 100% loss, now there's only a possibility of losing 75%. Keep goings lads, we'll get there soon. suppose it depends how much you think a sad sack of sheds in a muddy field is worth I guess - far less than has been gifted or if 2nd charge behind another 10 mill - erm that'll be sweet fa then it was sh*te from the start tbh
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Post by charliebrown on Nov 7, 2018 23:42:16 GMT
Stopping the interest payments is a new low for LY. Their business is totally finished and they know it. How can they even consider dropping us to a second charge and not giving us the interest that has already been paid up front. What on earth is going on here. LY need to be stopped, send in someone who knows what they’re doing, this is ordinary people”s savings at stake here. I thought LY had stooped as low as they could go, but obviously not.
As a second charge we’re going to end up with nothing. With a first charge it looks like we could at least recover 10 million.
LY are unfit to run a large financial institution. I never thought I’d say it, but the FCA needs to shut them down and hand the entire mess over to professionals.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 8, 2018 0:22:47 GMT
Lendy may well believe they can do whatever they like with this clause: 8.1 When you agree to lend money using the Lendy Platform you irrevocably and unconditionally, appoint Lendy to act as agent on your behalf in relation to the loan and instruct Lendy to sign and/or approve the Loan Contract, any novation, and any Finance Documents as agent on your behalf.
However, it would be quite easy to prove wilful misconduct and terminate the contract. Come hell or high water, when I enter into a legal battle, I always win. 9.6 & following is probably more pertinent as that gives the right to restructure without consent if required which is effectively what they are doing
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invester
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Post by invester on Nov 8, 2018 8:12:58 GMT
They can write what they want in the T&C's, but as the London loan shows us, it doesn't make it legally binding. The question is whether anyone would bother to challenge it. I suspect there will be enough big hitters in this one.
Do also note that this is only under consideration. My gut feeling is that like the Wolverhampton loan, Lendy will note the backlash and reverse the decision, although I don't know if the intention to stop paying interest might mean a deal has already been done.
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Carter
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Post by Carter on Nov 8, 2018 8:13:57 GMT
The Lendy update stated that the borrower has an offer from a third party to provide funding which would result in our loan being demoted to a 2nd charge. Lendy have stated that this is under CONSIDERATION.
I would expect them to consider all options. From our perspective clearly this isn't a runner and puts us in an even greater precarious position.
We have more than enough leverage over this borrower to dictate what follows and conceding this would not be smart.
I wouldn't expect such a change would/should occur without voting at least. Lets see what happens.
I have contacted Lendy directly regarding this as well as the retained interest matter. Lets see what happens.
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reinvestor
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Post by reinvestor on Nov 8, 2018 8:22:01 GMT
I'm not in this loan but I find the fact that the idea is even being considered by Lendy to be totally outrageous.
To put it another way: My mortgage broker rings up my mortgage lender and tells them that they are being demoted to a second charge as I'm borrowing more money from another lender who wants a first charge. The chances of that getting a green light??
How is this even being considered? Such a material change to the security of a loan is a massive breach of the FCA's Treating Your Customers Fairly policy that I'm sure even that spineless lot would have something to say about it.
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SteveT
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Post by SteveT on Nov 8, 2018 8:32:38 GMT
The question is, what did Lendy contractually agree with the borrower? To fund the whole facility, subject to the borrower complying with their own obligations, is my guess. Otherwise this wouldn’t even be considered.
Parallels here with what’s being claimed on the DFL016/017 case, but there it seems clear cut that the borrower DIDN’T comply with their obligations.
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reinvestor
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Post by reinvestor on Nov 8, 2018 8:37:54 GMT
The question is, what did Lendy contractually agree with the borrower? To fund the whole facility, subject to the borrower complying with their own obligations, is my guess. Otherwise this wouldn’t even be considered. Parallels here with what’s being claimed on the DFL016/017 case, but there it seems clear cut that the borrower DIDN’T comply with their obligations. If that is the case then then word has spread round Lendy's borrowers about the London loan and Lendy's borrowers (plus potentially borrowers on other platforms) have them over a barrel.
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invester
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Post by invester on Nov 8, 2018 8:46:07 GMT
The Lendy update stated that the borrower has an offer from a third party to provide funding which would result in our loan being demoted to a 2nd charge. Lendy have stated that this is under CONSIDERATION. I would expect them to consider all options. From our perspective clearly this isn't a runner and puts us in an even greater precarious position. We have more than enough leverage over this borrower to dictate what follows and conceding this would not be smart. I wouldn't expect such a change would/should occur without voting at least. Lets see what happens. I have contacted Lendy directly regarding this as well as the retained interest matter. Lets see what happens. I totally agree with this. You would have thought a vote would be required. It significantly changes the nature of our security for the worse, and we are not being offered any better terms. The only explanations for this are either that they forgot, or they would know that nobody would vote for it. I don't believe the first option is that credible and I believe that they simply added this in as a tester - if there was no large scale objection on the forums they would go ahead and implement it. I don't believe that Lendy would agree to fund the whole facility. At the time of conception it might have been difficult to know just how much money would be required to complete the project. Frankly, the project grinding to a halt benefits nobody. But I feel that Lendy are on the side of the borrower more than the lender, which shouldn't be the case. The borrower losing this site would obviously be a blow to their business plans. But with c.£15m down the pan, there clearly would be some value in realising the security now. Personally I think the site looks a lost cause from the point of view of this investment, but at a cut down price this would be attractive for a leisure operator. I just don't think Lendy want to tell the borrower this, and are bending ethics little to keep the development in their hands.
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