The first tranche of new loan offerings has, as promised, arrived. Today, we offer a snippet from the credit note of a loan that will be used to fund litigation for alleged financial irregularities in selling. For full detail, please register or login.
HTLH was recently incorporated to fund pension mis-selling and irresponsible lending claims.
Jonathan Paton is the sole director and the company has 10 A Ordinary Shares, which are owned by HT Legal, and 90 B Ordinary Shares, which are owned by PIM Trading Ltd. PIM Trading Ltd. has 175 Ordinary Shares with 25 being owned by Julie Ioannides, 75 by Jonathan Paton and 75 by James Minns.
HTLH currently has a book of pension mis-selling claims with an expected fee income of £1,169,154 and a book of irresponsible lending claims with expected fee income of £309,420. To date, HTLH has borrowed £75,000 from JV Minns Ltd, a company owned by James Minns, and £200,000 from MSA Consulting Ltd, which is owned 50% by Jonathan Paton and 50% by Tony Ioannides. It is now looking to borrow £125,000 from Money&Co. HTLH has reached agreement with HT Legal that it will pursue the claims on its behalf and that 10% of the revenue expected from each claim will go to the legal firm.
The company is pursuing claims in four areas currently:
This has been the main focus of the business to date and the expected revenues from ongoing claims is expected to be £1,169,154. Many of the claims relate to poor advice given by a specific IFA that has gone into administration and compensation will be received from the Financial Services Compensation Scheme (FSCS).
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.