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Wellesley - Suspended interest payments and capital return.

IanW27
Posts: 2 Newbie

I have an investment in Wellesley's Mini-Bond offering that was initially for a 2 year period, that has been paying 3.95% interest. As part of their processes you need to give 6 months notice period to end the bond prior to its end date.
This I did, and was expecting the return of my capital and last interest payment last Thursday.
Late on the Wednesday afternoon, I received a very short email saying due to uncertain market conditions my capital and last interest payment would not be paid as scheduled. No further explanation or information when I have tried calling or emailing for discussions.
Has anyone else had this happen to them recently or any advice on where I stand with them?
Thanks
This I did, and was expecting the return of my capital and last interest payment last Thursday.
Late on the Wednesday afternoon, I received a very short email saying due to uncertain market conditions my capital and last interest payment would not be paid as scheduled. No further explanation or information when I have tried calling or emailing for discussions.
Has anyone else had this happen to them recently or any advice on where I stand with them?
Thanks
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Comments
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Are you trying to end the bond before its 2 year period is up or you have timed the 6 months notice so that it pays out at the 2 year period? If you are trying to end early then its entirely normal that they wouldn't pay out. Also as you know this is a capital at risk kind of bond so I would suggest you need to continue to try to contact them for updates.0
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Presumably when you invested your money there will have been warnings that 'capital is at risk ' 'returns not guaranteed.
Like other P2P type companies they have been hit hard by Covid etc and are presumably delaying payments accordingly.
There is another forum , specifically about these types of companies and here is a link to the Wellesley section
https://p2pindependentforum.com/board/60/wellesley
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https://uk.trustpilot.com/review/wellesley.co.uk
You are not the only one - see above.0 -
Not unexpected. It has been said for many years that the next major downturn would highlight the flaws in these which is why most people are advised not to use them.
Thankfully, as you probably knew this was a possibility, it shouldn't be a problem for you. Hopefully, it is just a delay and you won't be required to take a haircut.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.3 -
dunstonh said:Not unexpected. It has been said for many years that the next major downturn would highlight the flaws in these which is why most people are advised not to use them.
Thankfully, as you probably knew this was a possibility, it shouldn't be a problem for you. Hopefully, it is just a delay and you won't be required to take a haircut.0 -
Seems straight forward enough.
"Wellesley Mini-Bonds are non-transferable and operate under a fixed term so that the investor must hold the bond until maturity. Wellesley customers may submit a request for early redemption after the first anniversary of the bond, however Wellesley is under no obligation to accept the early redemption request and will treat each on a discretionary basis."0 -
It wasn't an early redemption request, it was for repayment after the maturity of the bond.0
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IanW27 said:It wasn't an early redemption request, it was for repayment after the maturity of the bond.0
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They've been in trouble for some while judging by their accounts.
You have to suspect that this isn't going to turn out well or as people expected. Fingers crossed though for those invested with them.1 -
Wellesley are entering a CVA. Outcome does not look good. More info on P2pindependentforum.com (see link in posts above) . Also an article in the Times.0
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