Peer-to-peer lending sites: MSE guide discussion

fun4everyone

I still wonder back to Refresh Recoverys "100% recovery" claim. Sounded promising at the time although clearly they could not say that about active loans? Must have been talking about cash in client accounts + the loan book being as described.

masonic

fun4everyone wrote: »

I still wonder back to Refresh Recoverys "100% recovery" claim. Sounded promising at the time although clearly they could not say that about active loans? Must have been talking about cash in client accounts + the loan book being as described.

It was predicated on an outright sale of the platform to an authorised firm who could take over management and/or refinance loans to its own customers. RR claimed to have received several offers, although this was never substantiated. The claim suggested a high degree of naivety about the business, or an attempt to placate investors while "business profits" were quielty being withdrawn. We'll never know what was going on behind the scenes.

fun4everyone

masonic wrote: »

RR claimed to have received several offers, although this was never substantiated.

IIRC a representative of another platform posted on p2p forum that they had offered to take over the loan book. Not quite the same as taking over client accounts completely but it did have some weight.

Certainly the loan book (of active loans) appears to have been as described anyway from what I have read.

Client cash accounts, money in loans that were not drawn down........we will just have to wait and see

masonic

fun4everyone wrote: »

IIRC a representative of another platform posted on p2p forum that they had offered to take over the loan book. Not quite the same as taking over client accounts completely but it did have some weight.

Buying the loan book (i.e. refinancing all the loans to their platform) would certainly have done the trick.

However, I'm only aware of two platforms who opined on the situation through a representative - one was Ablrate and the other BondMason. Neither offered to take over the whole loan book. BondMason came closest to doing so by offering to take over management of only those loans its held a stake in. However, this wouldn't have worked as BondMason is not FCA authorised. I don't believe the nature of Ablrate's offer of assistance was ever made clear.

Alexland

masonic wrote: »

Even the likes of London Capital & Finance sought the FCA's permission before appointing administrators today.

It's all part of maintaining the illusion that the company was operated in a fit and proper manner to try and minimise any liability for the board members. They will be trying to spin the line that this was an unfortunate business failure beyond their control.

Alex

AdrianC

fun4everyone wrote: »

I still wonder back to Refresh Recoverys "100% recovery" claim. Sounded promising at the time although clearly they could not say that about active loans? Must have been talking about cash in client accounts + the loan book being as described.

Let's remember that Refresh were in charge of the administration for three weeks, before being removed by the High Court, yet did precisely zero to secure the loan book data. It's entirely their fault that we're now having to pay BDO to recover and rebuild the list of who owned what loan parts.

Incompetence or cover-up...?

keyboardworrier

Kuflink now has a secondary market, 0.25% transaction fee and you can only sell whole loan parts.

Roland_Flagg

I'm not sure how much I can say about this as there is legal action being taken. But for anyone who is in the same boat I could do with a bit of advice regarding the Lendy London Loan.
Lendy has passed our details onto HCR solicitors to act in the interests of the lenders. But they want a £200 a month retainer.
I only have a tiny amount in one of the loans, and just seems like a lose-lose situation.
Any advice?

masonic

Roland_Flagg wrote: »

I'm not sure how much I can say about this as there is legal action being taken. But for anyone who is in the same boat I could do with a bit of advice regarding the Lendy London Loan.
Lendy has passed our details onto HCR solicitors to act in the interests of the lenders. But they want a £200 a month retainer.
I only have a tiny amount in one of the loans, and just seems like a lose-lose situation.
Any advice?

I've not really been following developments, but my understanding is that anyone who has ever held any loan part in the loan in question could potentially be drawn into the court case and there seems to be a general view that lenders could be held jointly and severally liable, although I can't ascertain whether that would actually be the case. If so the amount you have invested is irrelevant, it would not limit your liability; your liability would be limited by your assets and you could lose more than you invested. However, that scenario seems rather unlikely.

I also understand that Lendy only passed on details of those who contacted it for advice, presumably as a courtesy given that they cannot offer you any advice themselves.

The question of whether £200 per month is worth paying to a firm to whom you've been introduced by a third party, rather than seeking your own representation or doing nothing at all, is not a question anyone else can easily help you answer.

I would simply observe that litigious types who know what they are doing (and the fact this matter hasn't been thrown out of court already suggests just that) tend to follow the money. So, do you think you would look like a juicy target in terms of your personal assets and accumulated wealth?

gallygirl

Roland_Flagg wrote: »

I'm not sure how much I can say about this as there is legal action being taken. But for anyone who is in the same boat I could do with a bit of advice regarding the Lendy London Loan.
Lendy has passed our details onto HCR solicitors to act in the interests of the lenders. But they want a £200 a month retainer.
I only have a tiny amount in one of the loans, and just seems like a lose-lose situation.
Any advice?

I'm affected by this as well, £50 only, but don't know what to do.