james
Posts: 2,205
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Post by james on Feb 25, 2016 4:52:14 GMT
So:
A defaulted loan 262450 piece is for sale on the secondary market with 47.13 capital owed at 9% discount.
A payment is made at 21:01 for 42.87.
At 21:05 the loan is bought for 3.88 on the secondary market.
The buyer potentially gets four years of interest, any outstanding collectable penalties on 42.87 worth of loan for 3.88. Roughly a 90% discount on just the interest when it was listed at just 9% discount on combined capital, interest and penalties.
I wonder how long Bondora is going to continue to allow secondary market deals to continue after major changes to loan state which buyers can find before all sellers have had a chance to see that there has been a change. It's a beautiful example of a failure to treat customers fairly.
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yacop
Posts: 68 
Likes: 42
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Post by yacop on Feb 25, 2016 14:58:03 GMT
So: A defaulted loan 262450 piece is for sale on the secondary market with 47.13 capital owed at 9% discount. A payment is made at 21:01 for 42.87. At 21:05 the loan is bought for 3.88 on the secondary market. The buyer potentially gets four years of interest, any outstanding collectable penalties on 42.87 worth of loan for 3.88. Roughly a 90% discount on just the interest when it was listed at just 9% discount on combined capital, interest and penalties. I wonder how long Bondora is going to continue to allow secondary market deals to continue after major changes to loan state which buyers can find before all sellers have had a chance to see that there has been a change. It's a beautiful example of a failure to treat customers fairly. Sarcastically speaking: Not an issue for Bondora. It is not their Money.
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Post by jabardolas on Feb 25, 2016 21:14:47 GMT
I think most people are aware of that problem. And if they still chose to use the secondary market, then they know what they are getting into.
But yes, I do hope the guys at bondora fix that issue otherwise there's no point for me to try selling overdue or defaulted loans.
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Post by rahafoorum on Feb 26, 2016 10:59:53 GMT
You only think he's getting a great deal. What you don't see, is that probably the principal he bought, doesn't even exist anymore since this part was possibly fees for collection agency that are not shown anywhere (this should be the case if this loan was moved to Stage 1 prior to this repayment, which would be the case for this loan since it defaulted on 21.10.2015).
Also, there might not even be any interest payment whatsoever, since it's possible to agree to not having and it wouldn't be a big surprise if the borrower doesn't really pay anything after principal is paid. Don't know the full stats on that, but it isn't exactly a rule that defaulted borrowers pay full principal and all interest owed as well.
In other words, you received the principal amount AND the buyer paid you 91% of the rest of the principal, that actually doesn't even exist anymore and the one who got screwed, was the buyer, not you.
You are right, this IS a ripoff, but you're the one who gained some money from this ripoff.
Edit: The DCA system was introduced for loans defaulted since 7th (I think?) of June 2015 and later on even loans that defaulted earlier were moved into the same system. Yet, more than 8 months later, the fees are not shown anywhere whatsoever and you can still buy and sell these non-existing principal claims on SM freely.
Edit2: Since it's an EST loan, then the interest would also have a decent discount, so I wouldn't be too surprised if there's no actual interest claim left either and you received everything there'll ever be paid for that loan. You can look in sold loans part in my investments whether it'll turn into stage 5 sometime or not.
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