Hi anyone got any idea if there will be much of a recovery on these loans. It looks like we will be getting our money back on the I*** loans .And i have got back around £7000 pounds on various other trading suspended loans . So maybe there recovery team have had a kick up the A***.
No idea. Lender update email has been put off until 5 Apr
If you go back and look at the last update (sent by email to active lenders on these loans, about November?) then you ought to be able to draw your own conclusions.
Even the most active recovery team can only recover what is recoverable.
Looking at the Loan security blurb, these loans were supposed to be covered by credit insurance so that in the event of a default, lenders were to be repaid from the insurance pay outs. There were also covenants that the borrower had to comply with. AC had a legal obligation, as our Agent, to ensure that these conditions were complied with. They took their eye of the ball and failed us completely. As they are now using "surplus" monies from the PFs to repay lenders in wind turbine loans, they should also pay lenders who have lost money due to their debacle in these loans.
An interesting comparison. I'm not in the wind turbine loans and although I'm reading that thread with interest, I've not commented on it.
But you raise an interesting question: if their treatment of the Wind Turbine loans is some sort of admission that they messed up and are using available funds to sort it out, why not these loans (disclosure: I do have a piece of these!) as well?
I suppose the key question is about culpability.
The MLA is explicitly not covered by a PF, I get that. If I choose to buy into an MLA loan (which I did - this isn't a question of my being forcibly allocated something I didn't ask for) then I am explicitly accepting the risk of it going wrong.
However, I think I am entitled to expect competent and truthful behaviour from the platform in offering it, and my feeling, like yours, is that this set of loans falls into the "platform fault" category.
Read the Security parameters of the loan where they set out the conditions that the loan and subsequent tranches were set up under. Diveregencies from these conditions should have resulted in the loan being suspended and the conditions put right or the loan defaulted. It is all about timelines and when breaches of the security conditions occurred.
The similar loan via ArchOver, to the related company, also defaulted and the Platform failed to notice the breach of terms (possibly/likely?) due to ********** actions by the controlling parties.
However, the subsequent strong legal position taken by ArchOver is entirely different to that of AC. While no recovery has occurred to date, I am hopeful in the longer term.
Ultimately, how Platforms cope with the defaults that will occur will built their reputation. Managing to use excess funds to cover up a huge mis-management of a multi-£m loan, while welcome to some who are exposed, is just brushing the issue under the carpet, hoping no one sees the real issue.
Maybe it’s all fixed now, RS have promised the same when they took a huge hit from mis-managed expansion into bulk Car loans.
Time will tell, but it also opens Pandora’s Box if/when other AC loans go very bad and there’s no excess funds available.
Last Edit: Oct 1, 2019 10:57:22 GMT by Ton ⓉⓞⓃ: One possibly libellous word removed