11-10-2018, 08:06 AM
Apparently by Lendy's definitions a substantial amount of its loan book is about to go into default, on top of the significant proportion that is already there. It must be remembered that these are purely administrative regulations and the measure may overstate the true situation or underestimate it, e.g. a debtor may be six months overdue but has the company's indulgence for this, similarly a loan that is in term may be to a debtor that is in serious financial difficulties but because interest is held on account is not considered in default. Only a deep forensic examination of the loan book would reveal the true situation however apparently the position vis a vis lenders is as follows:-
Total loan Book £181million
Already non performing £47million (26%)
Claims £6million (3%)
The position before the end of October unless some recoveries are made or seriously overdue loans are given further extensions
Total loan book £181million
Non-performing £80million (44%)
Claims £6million (3%)
Live loans and less than 6 months overdue £95million (53%)
Lendy cling to three preposterous claims 1) no-one has lost a penny and 2) other recovery methods (personal guarantees etc) will cover the shortfall, if any, on individual loans 3) when enforced security will relaise its valuation.
Earlier this year the company made several new hires and claims to have a professional and competent team, recovery processes are long and tortuous (PBL056/064 for example are two years overdue) so it is perhaps a little early to judge the efficacy of the new team, but @ozboy as we were discussing on another thread the granting of full FCA authorisation, that Lendy obtained in the middle of the year, is of little or no practical use to lenders.
Total loan Book £181million
Already non performing £47million (26%)
Claims £6million (3%)
The position before the end of October unless some recoveries are made or seriously overdue loans are given further extensions
Total loan book £181million
Non-performing £80million (44%)
Claims £6million (3%)
Live loans and less than 6 months overdue £95million (53%)
Lendy cling to three preposterous claims 1) no-one has lost a penny and 2) other recovery methods (personal guarantees etc) will cover the shortfall, if any, on individual loans 3) when enforced security will relaise its valuation.
Earlier this year the company made several new hires and claims to have a professional and competent team, recovery processes are long and tortuous (PBL056/064 for example are two years overdue) so it is perhaps a little early to judge the efficacy of the new team, but @ozboy as we were discussing on another thread the granting of full FCA authorisation, that Lendy obtained in the middle of the year, is of little or no practical use to lenders.
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