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Post by Ace on Aug 15, 2018 21:23:21 GMT
I'm new to Welendus, so I'm still learning the ropes, but an unexpected thing happened today. My first £100 investment was fully lent out in under 24 hours, but one of the loans was completed the same day. It's listed under the Investment as a completed loan with no interest paid. The £10 loan has now been relocated to a different loan, so there's no real loss to me. So, I'm wondering: - Is this a common occurrence?
- What is likely to have happened here? It seems fairly unlikely that someone would take out a loan and pay it back in the same day, particularly as it is likely to have incurred platform fees.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,881 
Likes: 11,105
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Post by ilmoro on Aug 15, 2018 22:54:57 GMT
I'm new to Welendus, so I'm still learning the ropes, but an unexpected thing happened today. My first £100 investment was fully lent out in under 24 hours, but one of the loans was completed the same day. It's listed under the Investment as a completed loan with no interest paid. The £10 loan has now been relocated to a different loan, so there's no real loss to me. So, I'm wondering: - Is this a common occurrence?
- What is likely to have happened here? It seems fairly unlikely that someone would take out a loan and pay it back in the same day, particularly as it is likely to have incurred platform fees.
Had it happen a few times. I expect you were allocated a loan part from someone who withdrew funds so their loans were reallocated. Not sure if the loan contract allows borrower to withdraw at no cost within cooling off period which is alternative.
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Post by Ace on Aug 15, 2018 23:21:34 GMT
I've now had chance to check the contact. It states that there is a right to cancel in the first 14 days from the contact start date. There is a 0.8% per day fee for this.
It's not clear whether a 0.8% fee must be paid when cancelling on the same day as the contact start date.
There is no information as to how the cancellation fee should be split between the platform and the lender!
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greatmarko
Member of DD Central
Posts: 343
Likes: 373
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Post by greatmarko on Aug 16, 2018 9:26:49 GMT
I've now had chance to check the contact. It states that there is a right to cancel in the first 14 days from the contact start date. There is a 0.8% per day fee for this. It's not clear whether a 0.8% fee must be paid when cancelling on the same day as the contact start date. There is no information as to how the cancellation fee should be split between the platform and the lender! I believe that if the borrower repays within the first 24 hours, they don't have to pay any interest - [ Source]
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Post by nsiam on Aug 16, 2018 12:03:06 GMT
I've now had chance to check the contact. It states that there is a right to cancel in the first 14 days from the contact start date. There is a 0.8% per day fee for this. It's not clear whether a 0.8% fee must be paid when cancelling on the same day as the contact start date. There is no information as to how the cancellation fee should be split between the platform and the lender! I believe that if the borrower repays within the first 24 hours, they don't have to pay any interest - [ Source] That is correct. Welendus does not charge any interest if the loan is repaid on the same day. I can also confirm that borrowers do make use of this benefit sometimes.
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Post by Ace on Aug 16, 2018 13:30:51 GMT
I believe that if the borrower repays within the first 24 hours, they don't have to pay any interest - [ Source] That is correct. Welendus does not charge any interest if the loan is repaid on the same day. I can also confirm that borrowers do make use of this benefit sometimes. Thanks for the clarification nsiam. Does this need to be added to the contracts? Do borrowers also make use of the right to cancel within 14 days of the contact start date (other than on the starting day)? If so, can you say how the 0.8% per day fee would be shared between Welendus and the investor?
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Post by nsiam on Aug 18, 2018 13:36:52 GMT
That is correct. Welendus does not charge any interest if the loan is repaid on the same day. I can also confirm that borrowers do make use of this benefit sometimes. Thanks for the clarification nsiam . Does this need to be added to the contracts? Do borrowers also make use of the right to cancel within 14 days of the contact start date (other than on the starting day)? If so, can you say how the 0.8% per day fee would be shared between Welendus and the investor? After the first day, borrowers can cancel their loan at any time but since this is a credit product, interest will still apply on a pro-rata basis. In the event of early repayments if a loan is repaid too early, it is a loss making loan as the chargeable interest will be lower than the loan servicing cost. So with this in mind, Welendus still pays the lender the requested interest and the remaining sum goes towards covering some of the loss. Best, Nadeem
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