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Post by charliebrown on Nov 11, 2018 13:41:51 GMT
All of us live in a house, some of us may own it or have decent equity. Is this lady able to pick a few of us at random and ruin us? We are (most of us) ordinary people, we are not institutional investors. I hope the optimism that she has no case is correct but to the lawyers this is just a big lucrative game of chess, they have no concern over what is right and what is wrong, the winning and losing lawyers probably go for a drink together once the case is over. There’s been plenty of innocent people sent to jail and plenty of guilty people allowed to walk free. What can we do to protect ourselves? Relying on LY to be our saviour doesn’t fill me with confidence.
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Post by charliebrown on Nov 10, 2018 15:42:25 GMT
Unless any of us are actually Lawyers here, maybe it would be a good idea for at least one of us to get some legal representation (and share the cost). It would seem that if one of us has legal representation then we all have representation as “there’s only 1 case”. With LY protecting their assets I think they’re getting ready to pull the rip cord at the first sign of trouble and would have no qualms leaving us in the brown stuff. It’s ok to be confident and say the claim is frivolous but these cases tend to be won by the person with the most money and the most determination.
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Post by charliebrown on Nov 10, 2018 15:18:40 GMT
I just checked and it’s 1293 and 3757. I said 5k as someone else had said that. We wouldn’t know how many people are actually in both loans. There will be duplicate lenders in both loans so it’s unsure that if the 5,000 is legitimate whether any original investors will be joined who happened to have sold out by the time the SM was defaulted but agreed to the original contract. Also, as others have said, it’s not pro-rata by number of investors, she may sue lead defendants first. Also, you seem to be making us pay 10M - are you paying the 7.5M she already has from us again? Your calc would suggest 2.5M damages / 5000 = 500. But it might be difficult to sue 5,000 people in court and getting the lead defendants to sue the remaining X,000 also sounds extraordinarily difficult. That would last years presumably. How will lead defendants be chosen? At random? Or based on the size of their investment? Has it been disclosed how much each individual investor has invested? I assumed the 10m was the value of the claim against us and that we’d also lose the 7.5m already lent. Would we get to keep the property?
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Post by charliebrown on Nov 10, 2018 13:42:21 GMT
I’m hopeful that you’re right. However, the legal system often does not deliver justice. Let’s assume we lose, we’d be on the hook for 10m shared between 5k investors so that’s 2k each. It wouldn’t be the end of the world and I certainly stand to lose much much much more than that on all the other toxic LY loans that we are not collectively getting very worked up about. If this is the worst case then it’s not all that bad. I am more worried about the sheds! Everyone is saying we are 5k investors. Sorry but I don't recall having read that. Are we sure that's the number? Also, I would like to know which is the worst case? Would the worst case be to have to pay the £10m as loss that this bitch originally requested? Or can this figure get bigger as time goes by? I just checked and it’s 1293 and 3757. I said 5k as someone else had said that. We wouldn’t know how many people are actually in both loans.
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Post by charliebrown on Nov 10, 2018 13:29:46 GMT
Friends, The action thus far by the borrower is purely to intimidate. They, and their brief know that a case against investors hasn't any chance of success, so they will instead make demands to the Court in which they believe they have a reasonable chance of success, such as obtaining contact info of borrowers. This then places the mental state of the defendant into a position of vulnerability.. (if the court has given them my details then the court must think there is a case to answer!) It's all smoke and mirrors. The disclosure of names and addresses has absolutely nothing whatsoever to do with liabilities for future funding, and the claimant knows this, as does their legal adviser. It's a classic legal tactic to intimidate, designed to psychologically erode the defendant's belief that they are not liable, with the ultimate agenda to settle out of court in place of an actual hearing that they know would have bounced them out of the courtroom. Respond to any court paperwork, keep a record of costs involved, including time spent away from your usual business or employment to respond, sundry costs, and interest at the BOE base rate. Just remember.. the costs involved in bringing a case against 5000 people is prohibitively expensive, especially for such a large amount, and from an individual who claims to have no money left to finish a development. Such a case will never happen. Use every opportunity to inflict the maximum financial cost against the claimant, specifically by requesting a hearing, adding costs for serving documentation to the claimant, and lodging a counterclaim for loss of capital, loss of interest, etc. Once a counterclaim is lodged, the claimant will then have no power to withdraw any counterclaim you make before a hearing, even if they withdraw theirs. The claimant will also have to pay large sums for with this many parties involved in a counterclaim, so they will avoid that at all costs, whereas for you defendants it's not difficult or expensive at all. Frivolous use of court time as an idle threat will not go down well with any judge, nor will a lack of any evidence to indicate that the claimant has shown substantive activity in engaging outside of the court. Anyone with doubts I refer you back to the most excellent post by Mr_N. To my mind this case will be thrown out in minutes. There is no need for further legal representation for anyone. I’m hopeful that you’re right. However, the legal system often does not deliver justice. Let’s assume we lose, we’d be on the hook for 10m shared between 5k investors so that’s 2k each. It wouldn’t be the end of the world and I certainly stand to lose much much much more than that on all the other toxic LY loans that we are not collectively getting very worked up about. If this is the worst case then it’s not all that bad. I am more worried about the sheds!
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Post by charliebrown on Nov 10, 2018 11:35:41 GMT
My problem with the HCR offering is I can't afford to pay £200 per month+ VAT for up to two years. I suspect even if successful we won't get costs due to the dubious company structure that'll vanish upon 'resolution'
The problem with the HCR offering is they are getting paid regardless of actually doing anything, months can roll by with no action or 'awaiting paperwork'. But still I have to pay, then if I stop paying before trial I won't be covered. Sounds like throwing good money after bad.
I'd sooner establish a group of a few hundred of us prepared to co-ordinate and fight. I don't mind dropping a one off £1000 into this but won't subscribe to an on-going monthly expense. It's not that a group would mandate you need to pay something, but we should at least have an established membership and starting point for further action if required - at least collate expressions of interest in such an entity rather than utter panic a week before a trail is due to start and Lendy is no more.
My concern with doing nothing and merely waiting for Lendy to sort it out is that Lendy could collapse before trial. As a group we should be ahead of this and have a 'plan B' that hopefully we never need to use.
HCR want 200 quid per month? Is that per person? If all 5k lenders take that up then that’s a cool 1 million quid per month. Nice work if you can get it. I do share the concern with leaving LY to handle this. If the going gets tough it will be easy for LY to just fold and walk away. This is potentially why LY directors took legal charges over LY assets.
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Post by charliebrown on Nov 9, 2018 15:48:32 GMT
Really, really??? The only cash I would throw at this shower is my worst enemies.. The whole company appears rotten to the core. Imagine if they weren't working in benign times??!! If Lendy manage to recover a large amount of capital and interest in the defaulted loans then yes, I think that investor confidence would come back and people would reinvest their funds into the platform. Obviously that is a very big "if" and not something I'm highly expecting to happen but 12%p.a. interest rate with property based secured loans still remains a very attractive investment for many investors. If I am a typical LY investor (not sure whether I am) then the typical LY investor will be looking down the barrel of very significant capital losses which will take years. There is absolutely nothing attractive about this. LY really do need to throw everything they’ve got at resolving defaults, if they are successful then some confidence may return. However, personally I believe their brand is severely damaged and they neither have the skill nor the fight to resolve this mess. I hope I am wrong.
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Post by charliebrown on Nov 9, 2018 15:32:48 GMT
Same here. Maybe they intended to send the email to current lenders only but included also former lenders?
Gulp!!! This raises an interesting question. If you were originally in the loan but later sold out, are you still being sued? Whilst I did without hesitation vote to fight this, I can’t help thinking that where the courts have granted the borrower permission to sue us all individually (they wouldn’t waste everyone’s time for no reason) and the borrower has found lawyers who will take this case on (they wouldn’t take on a case that had no merit, would they?) then this is certainly not frivolous. When I look down my loan list it’s an unmitigated disaster and now on top of all that mess we have this mess. Very stressful.
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Post by charliebrown on Nov 9, 2018 3:07:42 GMT
Hi CB. Thanks for adding to this thread.
We need to keep this badly managed loan in the public domain as Lendy are clearly playing lip service to loyal lenders and have shown no guts dealing with this highly skilful defaulting borrower.
He has set the precedent that once an excuse has been accepted all that is needed is to last for 12 months with no payments of any money then the same excuses can be used again (in fact 2 excuses in this case i.e. JV that failed to appear and delay in the plans) which the feeble management at Lendy will just accept.
It may not be the biggest loan that is horribly late but it is the clearest example of the way a clever borrower can easily out manoeuvre Lendy (and their legal team) and how Lendy have lost control of a fairly simple development project.
This loan has been horribly mismanaged, but so have many/most/all LY loans. LY’s has lost control. Investors have stopped investing, borrowers have stopped repaying, the press are circling, lawyers are circling, staff are leaving and the LY money must be running out. I really don’t know what the answer is. Complaining on this board with other aggrieved people at least makes me feel I’m not alone, but I really wish there was something positive and constructive we could collectively do to help ourselves somewhat rather than just sit silently and let LY continue to misrepresent us.
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Post by charliebrown on Nov 8, 2018 10:15:49 GMT
It’s probably the least of our worries but can anyone see any justification for LY withholding interest payments here? It seems totally without justification.
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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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Post by charliebrown on Nov 7, 2018 13:23:34 GMT
This loan should have been defaulted a year ago. With 514 days of accrued interest and late payment fees I doubt very much that this borrower is suddenly going to pay up in full. Allowing loans to drag on for a year or 2 helps no one. I suspect LY has sight of an accurate valuation that shows the security is overvalued (as per usual) and hence they’d rather bury their head in the sand and continue to accept the same old excuses.
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Post by charliebrown on Nov 6, 2018 1:29:37 GMT
Haven't been following the Col story but weren't they unregulated so didn't have proper plans to wind down? If the administrators came in for Lendy, surely the just get on with the job instead of coming back with lame excuses every month- and have no hesitation using the PF. It seems COL didn’t have full FCA approval and hence FCA decided to shut them down, without any concern for investors. Administrators were appointed, so would roughly follow what we might expect to happen should LY give up the ghost. I can’t see what Administrators are doing behind the scenes at COL but there’s basically been no visible progress for a year apart from them presumably racking up huge fees. There’s been no updates, no progress reported, no plan published and no repayments; it’s basically a black hole. Some people are, sadly, posting on COL forum asking how this mess will be handled after they are deceased and how to ensure their Will has this covered. So, in the short term, I believe we are better in the hands of LY. What worries me is that LY is not a debt collection agency, will they stay in business just to help us recover our money, it seems unlikely.
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Post by charliebrown on Nov 6, 2018 0:27:41 GMT
ISTM that we should declare COL investment as a total loss on tax returns. COL is in Administration and there is no certainty that we will ever receive any recovery. If at a later date we receive a recovery then we can adjust future tax returns. I’m not a tax expert but I think that is a reasonable position to take.
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Post by charliebrown on Nov 5, 2018 23:41:00 GMT
now down to about 20 per cent of the interest which I should have received so that's something like 2.5 per annum rate of return. Still better than a Building Society, except of course with a BS I could actually withdraw my capital, whereas with Lendy I now confidently expect to lose not less than 50 per cent of it. Ho hum... You missed a bit of further bad news. You’re going to have to wait 3 or 4 years to realise losses. It might take even longer if LY go out of business and hand this sorry mess over to Administrators. Some have said bringing in Administrators might speed things up and lead to better recoveries but I’m not so sure about that as I’ve got money stuck in COL which is under Administration and literally nothing has happened for circa a year, not a single penny has been returned. With LY I am also doing my calculations based on 50% capital lossses. It’s a lot of money to lose but I’ve prepared myself for it, what I can’t accurately prepare for is the years and years of waiting and the distinct possibility that it won’t be LY running recoveries.
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