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Post by charliebrown on Sept 5, 2018 13:05:42 GMT
This is more than just a defaulted loan. Having lent our money against an asset that the borrower doesn’t own then ISTM that FS are perpetuating a fraud. Extreme negligence here. That’s why FS are refusing to tackle this head on and are burying their head in the sand. We’ve seen gross incompetence from FS on other loans but this loan is beyond incompetence and into negligence territory IMHO.
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Post by charliebrown on Sept 5, 2018 12:45:50 GMT
I like the idea of being able to buy/ sell late loans for a mutually agreeable discount.
I recall a loan on Lendy that went significantly late but in the end it turned out the security was good and a full recovery was made along with accrued interest and default interest. If a shrewd investor had been able to buy that loan at a discount once it defaulted then he/she would have made a tidy profit. Having said that the vast majority of late LY loans look like a complete train wreck so it’s unclear to me who would be jumping in to buy them.
I might be wrong here but doesn’t the FCA forbid trading in default loans? I’m thinking of the cases where (using LY as an example again) there has been some kind of major change to a loan (usually caused by LY being asleep at the wheel) and LY suspend trading saying it’s due to a change in risk profile. They didn’t used to do that and the consensus on the LY forums when they introduced this was that it was to comply with FCA rules. I don’t know that for sure though.
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Post by charliebrown on Sept 4, 2018 12:08:23 GMT
There have been plenty of loans where the property has been disposed of - most of the 'claims underway' one where were the property was sold and the shortfall remains. What isn't clear to me is there ever has been an recovery based on the legal action, either against the guarantors or valuers. Yet the prospects of recovery by this method as always 'good'. I too have a portfolio of mostly non-performing loans. Sooner or later you have to wonder just how long they can keep up the charade. Officially there are 12 cases in the 'claims underway', with the number of duds still yet to be crystallised I can see this heading towards 20 or so. With no real new loans being drawn down, only tranches of existing ones I can easily see a Collateral type event happening here. The number of complaints IMO will only get bigger.... I don't see Exeter being a very satisfactory outcome, and they won't have the money to pay the difference to lenders. At some point a revoking of the authorisation must be on the cards. The loan book is a bit of a mess. The loan book is a bit of a mess. That’s an understatement. I believe the FCA authorisation covers ticking process and governance boxes. I don’t think a platform will lose authorisation due to poor performance. If all LY loans fail and we all lose all of our money I don’t think the FCA cares as long as LY bankrupts us whilst following an approved process. As a Collateral investor I don’t see any comparisons with the LY situation. However, I wouldn’t be surprised if the outcome ends up being the same.
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Post by charliebrown on Sept 4, 2018 11:55:58 GMT
Yes good news indeed but arguably down to a responsible borrower honouring their commitments rather than Lendy firm management? LW I think most borrowers are reasonable. As with everything a few will screw the system. Unfortunately this taints the whole system disproportionately Not so sure about that, LY has attracted a lot of rogues. But credit to this borrower for being responsible and fulfilling his side of the bargain. Let’s give LY the benefit of the doubt too and assume their DD and loan management was done well. Here’s hoping the other repayments promised in September will also materialise.
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Post by charliebrown on Sept 3, 2018 20:56:24 GMT
I think this loan and the way it was handled on the run up to the default, the farsical vote and the way it’s been handled post default is the straw that broke the camel’s back for LY. If this loan had repaid as promised by LY then confidence in the platform would have been given a boost. If LY do go under then we can look back and say LY’s mismanagement of this loan was the beginning of the end.
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Post by charliebrown on Sept 1, 2018 22:59:57 GMT
TP latest review states 2 more directors resigning by xmas. was this in fortnightly update as i do not seem to recieve emails from lendy anymore.or has this come from somewhere else.does not look good if true. Clerly, whoever wrote this is speaking out of his arse. 2 more directors leaving? There's only one- Liam. But they'll only go if they can raise £60k?? They're making that net profit every month. Lendy won't go under, that's for sure. Some loans might, but not the platform. Not sure I agree. Look at all the overpaid champagne Charlies on their payroll. Just as most investors are seeing their interest payments dry up then I’m sure LY’s revenues are drying up. I also don’t think you can separate loans going under from the platform going under, the outcomes are related.
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Post by charliebrown on Sept 1, 2018 19:20:04 GMT
TP latest review states 2 more directors resigning by xmas. was this in fortnightly update as i do not seem to recieve emails from lendy anymore.or has this come from somewhere else.does not look good if true. Wasn’t mentioned in “investor round-up” which instead had a patronising article about why compound interest is good. I doubt LY would actually willingly tell us their Directors are leaving, it’s just not their style. Wonder where this info came from and whether it’s accurate. The current situation looks disasterous. I think we should be ready for LY to pull the plug and fold the company once they’ve got no incentive to carry on. Does anyone know how that scenario would play out?
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Post by charliebrown on Sept 1, 2018 18:51:33 GMT
Millwall Football Club has a chant “no one likes us, we don’t care.” Reminds me of LY’s attitude. In the long run, no business can survive when (it seems) a vast majority of customers/ investors are unhappy.
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Post by charliebrown on Sept 1, 2018 14:20:22 GMT
IMO It's all over for the Lendy platform. An appalling state of affairs here with next to no progress on most defaults for months and months. As that TP post said, somebody needs to step in. I really hope LY can continue. My negative posts here are meant to be constructive. I think there is a need from both borrowers and investors for p2p, however, LY’s execution has been woeful. I am also concerned about whether LY can recover from this position. I can’t see much new money flowing in when people look at the state of the loanbook. Their Wealth products seem to have bombed. Perhaps if they can secure a few repayments in September (as promised) including Exeter, some confidence might be restored. It’s hard to know what goes on behind closed doors at LY but they still don’t appear to care that investors are unhappy.
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Post by charliebrown on Sept 1, 2018 10:56:22 GMT
The updates are always a disappointment. I genuinely cannot remember the last time LY posted an update that was of substance and was true. Therefore, what’s the point of fortnightly updates. What’s the point of any updates at all. It’s probably better for us if they only post facts as updates. If there’s nothing factual to tell us then don’t post anything. It’s also ridiculous that loans that are >700 days overdue are not classified as losses; doesn’t FCA have some guidance on when a loss is a loss. >700 days of fortnightly updates that show zero progress.
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Post by charliebrown on Aug 28, 2018 11:38:00 GMT
For me the litmus test is putting to bed the powerboats fiascos and the Rishton scenario. No amount of emphasising that in investment there are losses as well as gains will restore confidence. Loans such as these demonstrate that FS has not been up to the job when loans get into trouble. Other investors in troubled loans e.g. cinema, Whitehaven etc, will have their own stories and are happy to come onto this platform again and again chapter and verse. The effect on investor confidence is corrosive. Don’t forget the art loans. Lending millions against assets not owned by the borrower! If you needed just one story to destroy confidence then that is the one. In other fields for this type of negligence you’d be struck off.
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Post by charliebrown on Aug 27, 2018 14:24:25 GMT
Looks like another big mess. Asset to (eventually) be sold for a huge loss and the losses to be moved under the “claims underway tab” where they will sit in a state of suspended animation for eternity.
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Post by charliebrown on Aug 27, 2018 14:16:07 GMT
I might be on very shaky ground asking this (hence why it is a question and not a suggestion) because I don't know the L agreement that intimately nor do I know as much about this loan as some but is there anything to prevent a small investor going via the small claims track and obtaining a ccj against L followed by payment or a larger investor going the regular county court route with solicitor? It is nearly always possible in almost any situation to go to Court. Using Moneyclaim (the on-line version of the Small Claims Court) may not be a bad idea as the Court Fee is quite low (depends on the amount of the claim) and if the defendant does not file a defence in 15 days you get automatic judgement without ever needing to attend court. I have found that large organisations often are incapable of responding in that time frame and then find it easier to settle rather than fight the judgement. However, if L were to file a defence in time I would rate your chances of success as rather poor because of the difficulty over the T&Cs and several other matters. The Court can award their costs if it finds in their favour. Also, only the first person to try this is likely to succeed (because they don't know what to do with the Court papers and miss the deadline) and it is possible that someone has already done it and they are now prepared. Well, looking at the latest updates on the Glous loans, it’s taken LY exactly 712 days to tells us that they’ve “arranged a conference call” so the chances of them being able to file a defence within 15 days would seem quite slim. Having said that, I’m quite sure they move a lot faster when it’s their money at stake than when it’s ours. i do hope that the people saying these loans will soon be repaid in full are correct, but as is my rule with LY, I’ll only believe it when I see it.
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Post by charliebrown on Aug 26, 2018 9:01:13 GMT
I wonder if this is related to Lendy removing claims that no investor has ever lost a penny... No one will lose money on this loan as the loan is actually to Lendy not the final borrower, as mentioned before this is on the old style agreement where we leant money to Lendy and they leant said money to the borrower. The only way we don't get all our money back is if Lendy goes out of business and then the claim is null and void anyway. I doubt it is that simple. Lendy are a law unto themselves, I really can’t see them shouldering big loses just because we reminded them this is an old T&Cs loan. In typical LY style they’ll be happy to collect their fees and commission and then push all the losses downstream. What’s to stop them doing that? Unless an investor with enough time and money believes the T&Cs have enough legal relevance to fight LY in the courts. Hope I am wrong though as I’ve got quite a lot stuck in these loans.
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Post by charliebrown on Aug 20, 2018 11:41:30 GMT
LY is dishing out some of the biggest losses in p2p, of course people have lost money.
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