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Post by charliebrown on Feb 18, 2018 1:45:22 GMT
I have looked on the website. It appears to be the biggest default loan that has CONCLUDED. Also , I think it has the biggest SHORTFALL after sale too. Exceptional is the word. I stand to be corrected if I am mistaken ?? Please tell me what the PF is for if it is not to at least soften the blow to lenders ? Also, I think the PF is 2.8M, so 1M is not close to half. Run the numbers for the expected losses across the rest of the portfolio that's in default, and those loans that might default, and tot it up. Then take another look at the provision fund number. LY are always keen to publicise that they’ve had the largest p2p repayment ever, I wonder whether they’ll be as keen to publicise that they’ve also had the largest p2p loss ever (assuming this loan is it). The thing that annoys me most about LY is still their comms and updates, it’s pure spin and politically correct fluff.
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Post by charliebrown on Feb 17, 2018 3:20:44 GMT
Just thinking about this a little more. I am no lawyer but in the case of PBL 155 there is a sequence that LY has to go through and probably why they are being a bit circumspect. Before they can sue KM, they have to know the extent of their losses. To know that, they have to have exhausted all other avenues of recompense from the borrower as the action on the default needs to come first - if the loan had not defaulted then who would care what the valuation was. If/once a shortfall is established from the borrower then they can sue KM for the shortfall up to the difference between sale and valuation. So, at present, I assume LY are pursuing the borrower while quietly putting together a case against KM in the background and I doubt if we will hear much from them at present. Should it all come to court, though, I would hope LY make as big a publicity splash as possible. If Lendy had nothing to do with the evaluation (i.e. did not give 'goals' to the evaluator...), then the valuation is the result of the work of a professional. If this work is totally wrong, as demonstrated by the sale at 25% of the valuation price (regardless of the recovery avenues Lendy might pursue in parallel), this evaluation agency should be sued immediately. Besides the potential economic loss for the lenders, there is a HUGE REPUTATIONAL LOSS for Lendy themselves (which is my view might be even bigger than the loan loss). This means people not investing anymore, people leaving immediately, people not joining, potential press negative articles, etc. (think also to all the negative advertising when the word out is that Lendy loans are a pile of rubbish with valuations inflated 4-5 times). And this just because Lendy would not be credible in any other proposition if they don't act here against this valuation agency. LY reputation was already taking a beating long before the castle, but it’s pretty much at an all time low right now. I just had a look at the LY reviews over on TrustPilot, most are 1 red star and an outpouring of, quite accurate and constructive, frustration. The LY replies are patronizing boilerplate replies that show not a shred of empathy; past performance is not indicative of future performance etc. A good reputation is only valuable if you ever thought it was something worth protecting. The worrying thing is I don’t think the castle is an isolated problem, the problem is systemic and I believe there’s quite a few more castles on the horizon.
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Post by charliebrown on Feb 17, 2018 2:18:10 GMT
I feel the pressure is building for LY. The “castle” debacle has, quite rightly, created a wave of bad sentiment. There’s only a few hardened LY fans who keep saying “everything’s fine, we all know the risks”, the rest of us are increasingly disatisfied. I just went over to TrustPilot to read some LY reviews, wow, they’re all 1 red star reviews and an outpouring of anger and frustration. The replies from LY are all patronising boilerplate answers.
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Post by charliebrown on Feb 16, 2018 16:44:38 GMT
poppyland - in reality nothing can be done unless it was possible to engage a lawyer on a no win no fee basis that was able to effectively destroy LY's T's&C's and then demonstrate a lack of Duty of Care. Platforms in general continue to be totally addicted to their own belief that it's all about the property as per the VR and the borrower has very little, if anything to do with it. This argument has been discredited on goodness knows how many occasions but nonetheless that is their stance. Platforms like to portray themselves - often self appointed, as professionals, experts, etc. The simple fact is that many borrowers are far more proficient at extracting funds, sorry our funds, which make many platforms look like basic amateurs. The only thing professional about Le*dy is ability to lose lenders money on a grand scale and strangely enough they keep doing the same thing and get away with it. ... and make a 3.3 million quid profit.
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Post by charliebrown on Feb 16, 2018 3:27:08 GMT
if someone robbed a bank for 2.2m in broad daylight they’d be looking at significant prison time. However, a white collar heist like this is not punishable and whatsmore there is a strong suggestion that the victims are themselves to blame for not being more careful with their money. I am not disappointed, I am disgusted. There are (very few) circumstances whereby this level of loss could be justified (major economic or asset related event), even then question should be asked. But under these relatively benign conditions, it would be foolhardy to merely brush this kind of loss under the carpet and move on. Lets be honest there are likely many many other loans like this lurking on quite a few p2p sites. When the media get tucked into this there will be call for change, if not now but sometime soon. I hope the media do take this up and shame all those involved, if they have any shame that is. Strange world we live in where this kind of con is legal. I take particular offense at investors being blamed for not being smart enough to spot the con.
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Post by charliebrown on Feb 16, 2018 1:54:19 GMT
if someone robbed a bank for 2.2m in broad daylight they’d be looking at significant prison time. However, a white collar heist like this is not punishable and whatsmore there is a strong suggestion that the victims are themselves to blame for not being more careful with their money. I am not disappointed, I am disgusted.
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Post by charliebrown on Feb 11, 2018 12:11:27 GMT
This loan is undoubtedly under the old terms and therefore Lendy are liable for it to be repaid. The question is however, when can we take enforcement action to recover this from Lendy whilst their recovery from the borrower/asset continues ? Couldn’t Lendy just fold and start again tomorrow as Mendy. That’s probably what the ultimate borrower will do if Lendy pursues them. I hope there’s a positive resolution to this within a reasonable timeframe as I have a significant sum tied up in this. I do think Lendy exploring the build out option is positive. Unsure where the money for the build out would come from and from what’s been written on this thread it seems build out might still result in a loss, so might just be damage limitation. The last default/ build out at least seems to be pushing things towards a conclusion even if there will be an ultimate loss for investors it might be that damage was limited as much as possible.
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Post by charliebrown on Feb 11, 2018 4:11:20 GMT
So, I stand by my comment, come April 6th...........................
Would institutional lenders go anywhere near Lendy? Wouldnt it be considered wreckless. The fundamentals that we bemoan, such as missing financial accounts, limited accountability, limited transparency, limited liquidity, limited information exchange, would be a bridge too far for professional lenders, no?
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Post by charliebrown on Feb 4, 2018 2:37:23 GMT
Why do people/ companies take out loans they can’t repay. I understand that there is occasionally unforeseen circumstances, but surely not as frequently as Lendy loans are going bad. As we stand, default and suspension is a lot more common than repayment. When a loan repays we celebrate as though we got really lucky, like the expectation from the start is that it won’t repay and we were lucky that it did. There’s either an awful lot of unforeseen circumstances or people/ companies are taking out these loans with no intention of ever repaying them.
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Post by charliebrown on Feb 4, 2018 1:55:51 GMT
It shows just how little we know from the comfort of our armchair. When the picture was the artist’s impression I was really comfortable with my investment in this, which is significant. As soon as the real picture of the B&Q sheds was posted I nearly spat my tea across the living room. I panicked and assumed this loan was a scam. I immediately listed all my holdings. I had it up for almost 2 months but it barely moved and since I was losing interest I decided to cancel the sale. Looks like I’m stuck in this loan and many others, I can’t believe how fast the Lendy tide has changed, there’s no liquidity available anymore.
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Post by charliebrown on Feb 2, 2018 9:51:32 GMT
That’s rubbing salt in the wounds
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Post by charliebrown on Feb 2, 2018 0:19:15 GMT
I’d assume that just as our returns are dwindling from 12% to 6% then Lendy revenues are also dwindling. Lendy has offices to pay for, salaries to pay and by the looks of it a huge outlay to receivers/ legal fees to pursue all these bad loans. Just as early investors made their money and then got out (according to comments posted on this forum) the Lendy Directors are sure to have made an absolute killing and wouldn’t be too concerned. I’m deeply worried by this current situation, a lot of loans are in a terrible mess and it will take a lot more than a legal process to fix them.
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Post by charliebrown on Feb 1, 2018 14:31:08 GMT
The UK legal system is embarrassingly slow and favours the Lawyers much more than the plaintiff or defendant. We can’t blame Lendy for that.
However, I agree with the point that Lendy are never in a rush to enforce an IA or DEF loan. For example, after 410 days IA the update on R***** E***** states we are continuing to monitor the borrower’s exit strategy. 410 days!!!!!!
Are Lendy doing this so that they can continue to say that no investor has ever lost any capital. With resolution as slow and tedious as this most investors will be dead before they’ve lost any capital.
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Post by charliebrown on Jan 7, 2018 8:45:08 GMT
Including SUS, DEF and out-of-terms, DFL005 takes us (tomorrow) to a combined 38.6% (expressed as a % of LIVE+DEF loans). I wish LY would address this elephant in the room in their communications but they never do. The Weekly Roundup is all spin and propogandanda and telling us LY is a land of “opportunity”. I’m in deep in some of the IA, Suspended and Default loans and I’m not hopeful of a speedy or successful conclusion on any of them. To keep to the topic of the thread, given you’ve got a 38% chance of losing any money you invest will people keep investing? In fact there”s been no significant repayments for months so 38% might still be optimistic.
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Post by charliebrown on Jan 6, 2018 13:55:00 GMT
I just read through all the updates and there’s nothing meaningful to be extracted from any of them. Most report a lack of any progress and blame it all on Christmas. I’m not (for once) having a pop at Lendy, if there’s been no progress then there’s been no progress. However, it’s a fact that Christmas hasn’t stopped the loan term from decreasing and I’m currently in quite a lot of IA and default loans that are still sinking.
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