fasty
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Post by fasty on Nov 19, 2014 19:13:57 GMT
I've just had one loan go through an extended period of "processing" at month 8 payment, with status shown as "Retry". Now apparently it's paid. I've got others still at "Retry" 
What's the general consensus about these? Should the preferred sequence of events inevitably be Processing>retry>paid>execute-on-the-altar-of-secondary-market? Or do we give them a chance?
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min
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Post by min on Nov 19, 2014 21:37:09 GMT
I've just had one loan go through an extended period of "processing" at month 8 payment, with status shown as "Retry". Now apparently it's paid. I've got others still at "Retry"
What's the general consensus about these? Should the preferred sequence of events inevitably be Processing>retry>paid>execute-on-the-altar-of-secondary-market? Or do we give them a chance?
Problem is you/we don't know if delay caused by borrower lacking cash or an FC c**k up. My money tends to favour the latter.
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blender
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Post by blender on Nov 19, 2014 22:36:08 GMT
Retry is probably a yellow card, fasty. Not in itself enough to dispose of the parts but enough to justify further scrutiny. But if it goes terminally wrong next month you may kick yourself.
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fasty
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Post by fasty on Nov 19, 2014 22:47:50 GMT
Retry is probably a yellow card, fasty. Not in itself enough to dispose of the parts but enough to justify further scrutiny. But if it goes terminally wrong next month you may kick yourself. OK, thanks for the feedback. What makes me more nervous is that most of the ones I'm questioning seem to be around the 8-month mark.
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adrianc
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Post by adrianc on Nov 19, 2014 22:51:16 GMT
I experienced this joy last week for the first time (third repayment). Sho'nuff, next step was "LATE" and a comment that the DD had failed. Next day... payment. I'm giving it a second chance, but it really is on final warning...
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fasty
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Post by fasty on Nov 19, 2014 23:05:01 GMT
I experienced this joy last week for the first time (third repayment). Sho'nuff, next step was "LATE" and a comment that the DD had failed. Next day... payment. I'm giving it a second chance, but it really is on final warning... Sounds like the same one that I sacrificed last week. "Late", however brief, is now the full red card from my perspective, unless there's a damn good excuse (like, the DD was on a bank holiday and Fumbling Circus messed up). "Processing" in isolation doesn't ring alarm bells for me, but "Retry" definitely makes me nervous.
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blender
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Post by blender on Nov 19, 2014 23:26:56 GMT
Late and RBR are both red cards for me: if it comes back it is gone before the next repayment is due. Except for the first repayment, which is often due to Fruit Crumble.
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markr
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Post by markr on Nov 20, 2014 8:38:22 GMT
I used to check every day and make a note of lates and retries and sell immediately if they came back, but now I have too many loans (I'm not a diversity criminal) and can't be bothered so I only know something is amiss if the loan gets a comment from Furball Crisis. Any that get a "Payment has been received and distributed today" type comment get sold ASAP. I don't think I've had noticeably more bad 'uns since relaxing my policy, though.
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Post by GSV3MIaC on Nov 20, 2014 9:15:13 GMT
Missed DDs, manual payments, etc. Do seem less frequent since Fruitcake Central changed their DD provider/methodology, which makes me hop even quicker when the crumbs hit the fan these days. And 8 months .. Oh dear ...
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fasty
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Post by fasty on Nov 20, 2014 9:28:53 GMT
Missed DDs, manual payments, etc. Do seem less frequent since Fruitcake Central changed their DD provider/methodology, which makes me hop even quicker when the crumbs hit the fan these days. And 8 months .. Oh dear ... Indeed, I'm not yet fully signed-up to the sell-after-6-months method, mainly because my portfolio so brutally diversified it would make too much work to churn them. I must check the age of the loan parts I acquired the recently (from someone called GSV3MIaC if I remember correctly...)
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Post by GSV3MIaC on Nov 20, 2014 9:51:31 GMT
They'll be hot off the presses, excess to requirements, untouched by human hands. 8>.
Unless they were property loans of course, in which case they may be a bit frayed around the edges.
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blender
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Post by blender on Nov 20, 2014 9:51:21 GMT
Selling after six months is a bit crude, Fasty, and really it would be best to dispose of C- earlier and A+ later - reckoning that safe period is related to the strength of the company, and that is related to the banding (or used to be before Father Christmas became more generous with the A+). The way to do an approx six months, or whatever, is just to go to sell individually, ordered by ascending loan number, and work from the top deciding which to sell and which not. Repeat that when time is available, and over time it will have the desired effect. (Forgive me please if this is obvious).
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Post by davee39 on Nov 20, 2014 10:40:23 GMT
Direct Debit Failed - payment made a day or so later? Assuming this is not the first payment it is unlikely to be an FC problem. I assume the company has insufficient cash at the time which may hint at cash-flow problems. Why give any loan the benefit of the doubt? Since I am selling everything after a few months anything naughty goes straight away - like an interior design co which has just had its rate band restored after a CCJ scare.
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fasty
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Post by fasty on Nov 20, 2014 11:00:40 GMT
Direct Debit Failed - payment made a day or so later? Assuming this is not the first payment it is unlikely to be an FC problem. I assume the company has insufficient cash at the time which may hint at cash-flow problems. Why give any loan the benefit of the doubt? Since I am selling everything after a few months anything naughty goes straight away - like an interior design co which has just had its rate band restored after a CCJ scare. I've had loads of first payments delayed - and generally it gets smoothed out (except for a certain wine merchant, but then FC coughed up.) On the other hand "retry" also implies to me that the borrower had insufficient cash in the bank. Now that might imply that they're a smart business that doesn't leave cash idle ( and just got a bit careless), however unless it's an demonstrably robust business it seems more probable that they are struggling.
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oldgrumpy
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Post by oldgrumpy on Nov 20, 2014 11:10:27 GMT
If they've just received £100K (or whatever) they shouldn't be having cashflow problems or be struggling by the time of the first payment.
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