Loan Term adjustment notification

It will be interesting to see the date change direction? Some up some down maybe?

I've just noticed this on the Lendy Website:

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"The Lendy platform was launched in 2012 and since then our investors have grown to over 16,000, with our loan book growing to over £320m.



As one of the fastest growing P2P platforms, we continually review how our business is run in order to ensure we're acting in the best long-term interests of all our users. With this in mind, we feel it's important to let all of our customers know of any changes with as much advance notice as possible.



A recent review has identified certain disparities in the way we calculate a loan term, with some discrepancies between a loan term published on the platform and the term noted in the master loan document.



This message is to give you advance notice that we will be undertaking a reconciliation programme, and making adjustments where a remaining term differs between platform and the master loan document. Discrepancies can occur for a variety of reasons but the most common are when extensions have been agreed but not factored into the platform loan term; and the different methods used by parties to calculate the term.



Implementation of the changes start next week."

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I don't think I understand this notice fully and would like to read your thoughts if you have any. I'll start on what I do understand.

There's a change that will be implemented next week. It hastens to warn us that it is in the best "LONG-TERM" interests of the users. This is when I got some of my paranoid alarm bells ringing and started thinking it is perhaps not in our short-term and medium-term interests?

The issue as I understand it: disparities of what loan term is published in the master loan document and what Lendy publishes on the website. What I'm fearing will happen is that Lendy is finding ways to whitewash the loan book appeal and make some of the loans look better than they are?

I'm sure the above will sound paranoid to some, but I'd be interested to hear if that's all it is. Perhaps this 'issue' has been known to the community for some time anyway and this is just the formality of the process to resolve it?

OR perhaps this is just confirmation to some of you that they are in fact Lizards people who are taking over the world and this is just one more unbearable step to make it happen?

Ilmoro, many thanks for both moving the post in the appropriate thread and the information you provided. I did search the forum to look for the discussion but somehow I didn't find it and it wouldn't be the first time I've been blind. It reassures me that you guys understand what's going on. I do have another stupid question though and it is from the very sentence that answered my previous worries: "The basic issue is that on the platform the loan term starts ticking down from launch but the actual term for the borrower doesnt start until drawdown."

As I understand it we (the lenders) start getting interest from LAUNCH. Now if the 'actual term' is from drawdown, that means, to my understanding, the interest paid in advance by the borrower is for the actual term .. Is it Lendy who is paying us interest between LAUNCH and DRAWDOWN?

In the model they published in May 2015, the arrangement fees were 4% together with an exit fee of 2%. No idea what they are now.

Yes indeed, some good points well made there. The LY definition of default which only occurs after 180 days overdue is a nonsense in legal and practical terms but a godsend to the astute investor. As ridiculous as it is, I would be off like a shot if the rules were changed.

All 'remaining term' deltas so far have been positive (i.e. the terms have all been extended).

Most of the amendments are minor, a few days, probably to account for the discrepancy between the 'go live' time for investors and the 'draw down' time for borrowers as was explained by Lendy Towers.

There are a few clear one or two month extensions that have appeared. Presumably these were granted some time ago but nobody updated the on-line database. It is both inefficient and error prone that Lendy have at least two distinct sets of data referring to the loans: their internal 'master' loan book and the data which we see online.

A one month extension (31 days) for PBL142 - V******* M*** Manchester.

Two month extensions (61 days) for PBL107, PBL108 and PBL112 (London flats) and also for PBL141 (The W***** Tunbridge Wells).

PBL156 - M**** Q*** Hull got a 56 day addition.

All others, less than 30 days.