boble
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Post by boble on Jun 17, 2016 13:29:47 GMT
Do part loans for sale continue to attract interest until sold? I am not clear on this point; queueing to sell a loan part is a new experience for me, and I suspect many other SS Investors.
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Post by brianac on Jun 17, 2016 13:33:57 GMT
Do part loans for sale continue to attract interest until sold? I am not clear on this point; queueing to sell a loan part is a new experience for me, and I suspect many other SS Investors. Yes they do attract interest, but it doesn't get credited to you, it (nominally) goes into the P.F. Leastways my understanding Brian
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Post by trilby on Jun 17, 2016 13:45:03 GMT
It does give you a popup telling you this every time you sell a loan part, it's hard to see how much clearer they could make it.
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Post by ogwellian on Jun 17, 2016 14:09:41 GMT
It does give you a popup telling you this every time you sell a loan part, it's hard to see how much clearer they could make it. By changing the ambiguous wording? It says:- "You will cease to earn interest on the amount you choose to sell at the point you click to confirm. Once the total amount has sold we will credit the balance to your account. Any unpaid interest accrued prior to sale will be credited at the end of the month as usual." The last sentence says interest "accrued prior to sale", not "accrued prior to being put on sale".
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adrianc
Member of DD Central
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Post by adrianc on Jun 17, 2016 14:15:09 GMT
It does give you a popup telling you this every time you sell a loan part, it's hard to see how much clearer they could make it. By changing the ambiguous wording? It says:- "You will cease to earn interest on the amount you choose to sell at the point you click to confirm. Once the total amount has sold we will credit the balance to your account. Any unpaid interest accrued prior to sale will be credited at the end of the month as usual." The last sentence says interest "accrued prior to sale", not "accrued prior to being put on sale". The first sentence is unambiguous. You will not earn any more interest on that part after you click confirm. And the last sentence is also perfectly correct - you will be credited with all the interest prior to the sale. But, as the first sentence says, that interest won't go up during the period the part is on sale.
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boble
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Post by boble on Jun 17, 2016 15:04:38 GMT
By changing the ambiguous wording? It says:- "You will cease to earn interest on the amount you choose to sell at the point you click to confirm. Once the total amount has sold we will credit the balance to your account. Any unpaid interest accrued prior to sale will be credited at the end of the month as usual." The last sentence says interest "accrued prior to sale", not "accrued prior to being put on sale". The first sentence is unambiguous. You will not earn any more interest on that part after you click confirm. And the last sentence is also perfectly correct - you will be credited with all the interest prior to the sale. But, as the first sentence says, that interest won't go up during the period the part is on sale. Thank you all for your comments. Thinking it through, I can see that it is a fairly complex subject, as whilst until the part loan it is sold it remains the property of the seller (hence the seller has the option up to a certain point to cancel the sale), as soon as part of the part loan is sold there is a (kind of) joint ownership. No doubt some software coding would be able to deal with this, however, I would support the idea that notionally accrued interest be credited to the PF. This proses should mean that there would be no limit placed on the value of the PF. Does anyone know where the FP is held?
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sl75
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Post by sl75 on Jun 17, 2016 15:31:25 GMT
Just to further complicate matters...
If you cancel a sale, the loan part immediately accrues all the interest during the period that the loan part was in the queue.
(You can then put it back up for sale again, at which point it stops accruing further interest, but goes to the back of the queue)
So, whether by design or accident, SS have created an incentive for people near the front of a long queue to cancel their sale order (and thereby shorten the queue for everyone stuck behind them who doesn't mind the loss of interest).
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boble
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Post by boble on Jun 17, 2016 17:42:12 GMT
Just to further complicate matters... If you cancel a sale, the loan part immediately accrues all the interest during the period that the loan part was in the queue. (You can then put it back up for sale again, at which point it stops accruing further interest, but goes to the back of the queue) So, whether by design or accident, SS have created an incentive for people near the front of a long queue to cancel their sale order (and thereby shorten the queue for everyone stuck behind them who doesn't mind the loss of interest). Wow, that is very interesting, and as you say, even further complicates things.
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