London Capital and Finance

Reaper

skattie wrote: »

I would just like to say thank you to this thread and those that urged caution against LCF, I was tempted but fortunately withdrew from this opportunity, thanks to the comments early on in this thread

Thanks. It is frustrating to warn about something for years but feel the warnings are getting missed or ignored. It's good to hear the thread saved someone money.

Hopefully many more decided not to invest after seeing it via a Google search even if they were not members of the forum and did not post to say so.

Kendall80

Yes they did - just watched it. The sort of personal stories you'd expect unfortunately.


One argument is that an 8% bond return is too good to be true but more consumer protection from the FCA would not go amiss. I feel for those who went all in on this. Apparently they 'may' get 20% back. Small comfort.

eskbanker

Rheumatoid wrote: »

https://www.bbc.co.uk/news/business-47679192

The Beeb are really going all-in on this - at the time of posting this is the number one top headline story on their main home page, displacing MPs taking control of Brexit into second place status....

Alexland

eskbanker wrote: »

The Beeb are really going all-in on this - at the time of posting this is the number one top headline story on their main home page, displacing MPs taking control of Brexit into second place status....

Good the FCA deserve to be getting a public beating over how long they let this continue and how many thousands of people are now left with life changing financial damage.

rr755507

The "Joint administrators' Report and Statement of Proposals pursuant to Paragraph 49 of Schedule B1 Insolvency Act 1986" available below:

https://www.smithandwilliamson.com/-/media/saw/files/pdfs/lcf-joint-administrators-proposals.pdf

GDB2222

Kendall80 wrote: »

Yes they did - just watched it. The sort of personal stories you'd expect unfortunately.


One argument is that an 8% bond return is too good to be true but more consumer protection from the FCA would not go amiss. I feel for those who went all in on this. Apparently they 'may' get 20% back. Small comfort.

This particular bond promised a return that was too good to be true, but it would be easy to set up a scam that offered say 2-3%, so you can't rely on scams to signal themselves by offering outlandish rates of return. (Not to suggest that LCF was a scam, ofc!)

Alexland

rr755507 wrote: »

The "Joint administrators' Report and Statement of Proposals pursuant to Paragraph 49 of Schedule B1 Insolvency Act 1986" available

That's grim reading - the conduct of those involved was worse than even my pessimistic expectations.

Malthusian

eskbanker wrote: »

The Beeb are really going all-in on this - at the time of posting this is the number one top headline story on their main home page, displacing MPs taking control of Brexit into second place status....

Rather refreshing to have some actual news that affects ordinary people's lives in the mass media. Don't worry, normal service will be resumed soon.

Reaper

rr755507 wrote: »

The "Joint administrators' Report and Statement of Proposals pursuant to Paragraph 49 of Schedule B1 Insolvency Act 1986" available below:

https://www.smithandwilliamson.com/-/media/saw/files/pdfs/lcf-joint-administrators-proposals.pdf

Wow there is a lot of detail in there (at last). A lot can be extracted from it, here's just a couple of things that leapt out at me.

There are a number of highly suspicious transactions involving a small group of connected people which have led to large sums of the Bondholders’ money ending up in their personal possession or control.

No surprises there but good to see the rose tinted glasses have come off. Also many references to borrowers being "totally unhelpful" responding to queries about where the money has gone.

All borrowers had ceased paying the interest applicable to their loans by September 2018 which was 3 months before the FCA intervened into the Company in December 2018.

Now that IS a surprise. So although LCF were saying borrowers had a 100% track record up to and even beyond the time the FCA got involved it's simply not true.

GDB2222

Quote:
All borrowers had ceased paying the interest applicable to their loans by September 2018 which was 3 months before the FCA intervened into the Company in December 2018.
Now that IS a surprise. So although LCF were saying borrowers had a 100% track record up to and even beyond the time the FCA got involved it's simply not true.


That's all very odd, as interest was only charged quarterly. So, did they pay September, but not December quarter?