JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Feb 8, 2016 9:58:33 GMT
Over the weekend I noticed some changes to the interest payments, so I asked support what had changed.
This is their reply, so there is no longer any point in choosing loans with earlier starting dates.
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Rob
Posts: 138
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Post by Rob on Feb 8, 2016 11:06:35 GMT
Yes, I noticed this too. I enquired and got the same reply , but with the added:
"Repayment – will show only principal."
I had a loan which was paid off in full in individual monthly payments in advance (i.e., not as an Early Full Repayment where the borrower only pays interest up to the date of the settlement payment). They only paid me the interest up to the settlement date and pocketed the rest for themselves.
With the scheduled interest, they seem to be paying it even if the borrower has not yet paid.
As you say, with the one month loans paying only 12.9%, you could get more than this as you didn't need to hold the loan for a whole month to get the full month's interest. Now these don't seem so appealing and loans with a higher rate / longer duration are rare at the moment.
Does this mean that if you buy a loan from another seller part way through the month that you will only get interest from the date of purchase and that Twino will pocket the part of the month before the purchase? I don't think that they are going to pay it to the seller.
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Post by jevgenijs on Feb 8, 2016 11:41:18 GMT
Hello, Rob! We actually do pay the interest for the seller, when the loan is sold on the secondary market. Let's illustrate that: i.e. you invested in a loan and sold it after 15 days. In this case, you, as a seller, will get the interest for the 15 days and you will get the interest at the moment of selling it on the secondary market (previously you wouldn't receive any interest in such case). The buyer in turn will receive the interest for the remaining 15 days on the loan due date. As the result of the change, you don't have to wait until the due date to sell a loan on the secondary market, as you will be paid the interest (for the time you owned the loan) even if you sell prior to the due date. Another aspect of the change is that we will be paying the interest (not the principal) for the delinquent loans according to schedule. Thus, in case a borrower is late with the payment (meaning, we haven't received the money yet), we will still pay the interest to the investor, and the investor will be able to reinvest this interest. As the result, the BuyBack becomes even more effective for investors, as they get the principal back after 30 days of delinquency, they receive the interest for the full investment period and they can reinvest the interest while the loan is delinquent. Let me know if you have further questions. Sincerely, Jevgenijs |
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Feb 8, 2016 11:43:24 GMT
Does this mean that if you buy a loan from another seller part way through the month that you will only get interest from the date of purchase and that Twino will pocket the part of the month before the purchase? I don't think that they are going to pay it to the seller. Yes, one of the things I noticed was some small interest payments on a few loans I sold, so it doesn't stay with Twino..
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Rob
Posts: 138
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Post by Rob on Feb 8, 2016 13:10:24 GMT
I have been going through my statement and it appears that all the scheduled interest payments for the last few days are less than expected. It seems that Twino are retrospectively clawing back interest that was paid when you first invested in the loan if you purchased it part way through the month and received the whole month's interest on the first payment. Can you confirm this, jevgenijs ? |
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Post by jevgenijs on Feb 8, 2016 14:57:57 GMT
Hello, Rob! Not sure I understand what you mean by " retrospectively clawing back interest". Can you please explain what you mean by that? The interest payment transactions were not altered with the release. Thanks! Sincerely, Jevgenijs |
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Rob
Posts: 138
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Post by Rob on Feb 8, 2016 16:20:14 GMT
Hello, Rob ! Not sure I understand what you mean by " retrospectively clawing back interest". Can you please explain what you mean by that? The interest payment transactions were not altered with the release. Thanks! Sincerely, Jevgenijs Hello jevgenijs , The scheduled interest payments in my statement are mostly around 30 or 40% of the interest payment due on the site for their respective loans, calculated pro rata for the proportion I have of each loan. I therefore assumed that the next month of scheduled interest payments was subtracting the extra interest paid at the beginning of the loan for the period I didn't actually hold the loan. If this is not the case, then there is a serious error in the new scheduled interest payments. I will e-mail you some examples if this is the case. JamesFrance do you see this phenomenon?
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Post by jevgenijs on Feb 8, 2016 16:26:51 GMT
Hello, Rob! Can you please email me some examples to jevgenijs@twino.eu, so I better understand the situation and can check the specific loans? Thanks a lot in advance for that! Sincerely, Jevgenijs |
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Feb 8, 2016 17:52:43 GMT
Rob I find it difficult to keep up with interest payments now as I have a large number every day and often the interest is paid separately from the repayment of the loans, I presume scheduled is Twino paying interest when the borrower has not.. I looked at a 100€ loan with only 11C interest bought back but for some reason it was bought back almost immediately, so maybe the loan was cancelled although it was issued a week before I invested. I do see a one month loan which appears to have been repaid on time on 16th Dec with interest but shows no interest on my investment list, 03-70445. Also 02-57106 only shows me half of the expected amount, but not a recent one either.
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Rob
Posts: 138
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Post by Rob on Feb 8, 2016 20:36:17 GMT
JamesFrance All interest payments are now being made to the lender on the scheduled date (hence the name), whether the borrower has paid on time or not. I downloaded my statement for the last few months into Excel then sorted by loan number then processing date, so that each loan had its payments in sequence. If you then search for "schedule" so that you find each loan that has had an interest payment made using this new method (since 05/02/2016), you can see straight away that these interest payments are much lower than the previous ones in the sequence (not for 1 month loans, of course). I have e-mailed a couple of examples to jevgenijs and await their analysis.
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Post by littleinvestor on Feb 9, 2016 0:09:01 GMT
Indeed, since 05-02 the interest rates are calculated based on the exact date when the loan was repaid, I see the same in my statements. In fact till they put the fix in place, you were indeed acquiring interest for the whole period if an early repayment occurred  |
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Rob
Posts: 138
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Post by Rob on Feb 13, 2016 11:07:32 GMT
JamesFrance All interest payments are now being made to the lender on the scheduled date (hence the name), whether the borrower has paid on time or not. I downloaded my statement for the last few months into Excel then sorted by loan number then processing date, so that each loan had its payments in sequence. If you then search for "schedule" so that you find each loan that has had an interest payment made using this new method (since 05/02/2016), you can see straight away that these interest payments are much lower than the previous ones in the sequence (not for 1 month loans, of course). I have e-mailed a couple of examples to jevgenijs and await their analysis. E-mail received from Jevgenijs: "We have found the reason for the smaller / higher than expected interest payments. It’s not a technical bug, but rather a flaw in the interest calculation logic. The issue affects only payments in February, and will not affect future payments.
The unpaid interest will be debited to all investor accounts over the course of the next week, and my sincerest apologies for this inconvenience."I will be following my statement closely to ensure that this happens. (By the way, I don't quite see that a "flaw in the interest calculation logic" is "not a technical bug"!)
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Post by jabardolas on Feb 13, 2016 14:17:23 GMT
My account value dropped today by 0,6%. And I don't have a way to find where that money went.
Did these changes have a similar effect on your accounts?
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Feb 13, 2016 16:05:33 GMT
I keep a note of my total interest received and I have not seen a reduction today but a few cents of scheduled interest have been added. Maybe these small amounts are an adjustment and I hope Jevgenijs meant credited when he put debited.
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Rob
Posts: 138
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Post by Rob on Feb 13, 2016 16:15:37 GMT
My account value dropped today by 0,6%. And I don't have a way to find where that money went. Did these changes have a similar effect on your accounts? No, I have not seen this (though I have not been monitoring account value). The only way your account value can drop is if you withdraw money or interest is taken back by Twino due to an error. They sometimes pay interest on a loan by mistake and then take it back, sometimes days later. You can see this as a negative interest payment in your statement. I would download my statement into Excel, save it so that you can manipulate it (it is read-only otherwise), then filter for INTEREST payments.
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