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Post by dualinvestor on May 15, 2017 20:26:05 GMT
Think of a structure where they would offer to buy investors out at a discount to give liquidity to those who want it despite the dire liquidity available on the SM. The discount would likely be heavy though as that's how the buyer would aim to make their money, so those who didn't want the upfront loss could continue to hold. The risk of that then being that the manager bought at pence on the pound so isn't quite as incentivised to push to recover at par as you might want. Yes they have a duty to sell security at maximum price possible but that misalignment is crucial in my opinion. If the administrator has bought parts from the investors at a discount, then I'd think they'd have a huge incentive to maximise the proceeds from the liquidation because any incremental return on their own parts would go straight into their pocket. Am I misunderstanding something? No reputable Addministrator will buy assets (in this case loans at a discount) on his own account in a company where he holds the appointment. The firm proposed by Lendy is highly reputable and would never indulge in such practises. To do so is a clear conflict of interest and would inevitably lead to exclusion from his professional body and loss of his insolvency licence.
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Post by tomder on May 15, 2017 21:15:51 GMT
I really appreciate all the interest that this has received. It has certainly made me more cautious. I know this is not specific to Lendy, but it is where I have invested. reeknralf - I am concerned about the lack of 2 step security login. Just a single email and password and you are in. The norm is to have a second stage which is usually a memorable information passphrase. |
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Post by tomder on May 16, 2017 6:57:14 GMT
My understanding of the 2 step verification is that it SMS's you when a login attempt is made? Is that just an alert or forms part of the process? I enabled it the other day but have received no messages.
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gurberly
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Post by gurberly on May 16, 2017 7:48:13 GMT
My understanding of the 2 step verification is that it SMS's you when a login attempt is made? Is that just an alert or forms part of the process? I enabled it the other day but have received no messages.
It forms part of the process. Though I think it is activated only when you log in from a previously unused ip address. So it is not activated each and every time.
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lobster
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Post by lobster on May 16, 2017 9:39:45 GMT
I really appreciate all the interest that this has received. It has certainly made me more cautious. I know this is not specific to Lendy, but it is where I have invested. reeknralf - I am concerned about the lack of 2 step security login. Just a single email and password and you are in. The norm is to have a second stage which is usually a memorable information passphrase. 2 step security is an option on Lendy (it is completed via a mobile), and I highly recommend you activate it My Account > Security Details > Two Step Verification Obviously we shouldn't be complacent, but from the hacker's viewpoint, what is to be gained from hacking into a lender's account ? Yes, the hacker could buy and sell loans, which would clearly be bad news for the genuine account holder, but (and correct me if I'm wrong here) it wouldn't be possible for a hacker to withdraw funds into his/her own bank account. Funds could only be withdrawn into the genuine account holders bank account. ..... I think ?
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Post by lendinglawyer on May 16, 2017 9:57:04 GMT
lobster I think they could hack that restriction on the Lendy site away if they hacked Lendy. Query however whether they could action any transfers without hacking Lendy's bank. I don't think we know enough re how the back office at Lendy and the relationship between Lendy and its bank work to be able to confirm either way though.
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mikes1531
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Post by mikes1531 on May 16, 2017 10:43:47 GMT
My understanding of the 2 step verification is that it SMS's you when a login attempt is made? Is that just an alert or forms part of the process? I enabled it the other day but have received no messages. It forms part of the process. Though I think it is activated only when you log in from a previously unused ip address. So it is not activated each and every time.
Does it still require re-activating every two weeks? That's the one aspect that bothered me enough not to use it. When I'm away from home, I'm often in areas of no phone signal. I could have wifi, so I'd have internet access, but I'd be locked out of my Lendy account because I wouldn't be able to receive a text message. If a lenders account is compromised it is relatively easy to amend bank details - from the 'Support' site: Would only cost the hacker a quid. This is one area where the new faster processing of deposits could cause a real problem. The hacker makes the £1 deposit, it's credited in a few minutes, and then a large withdrawal can be made to the hacker's account.
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mikes1531
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Post by mikes1531 on May 16, 2017 11:07:11 GMT
It would require a confluence of events but it does seem to be trivially easy to amend bank details and effect a withdrawal. Does it really "require a confluence of events"? For an account without the two-factor feature implemented, ISTM that all it would require is a hacker getting into the account. (And knowing what to do once they had access, I suppose.)
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