ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 25, 2017 0:37:38 GMT
The update on the web site still shows it as being made SM'able Saturday 1pm... Now that has gone and I'm slightly confused. In the latest update MT say - "............ due to demand from MoneyThing lenders, we are intending to allow secondary market trading in defaulted loans, subject to clear risk warnings being provided to any would be purchaser of such loans that the loan is in default and warning of the additional risks involved with purchasing a defaulted loan on the secondary market. We will update the Lender Terms and Conditions in due course to reflect this change."But then it says - "In the meantime, as per our current Lender Terms and Conditions, we will no longer be enabling secondary market trading in (MTAT788) Lytham St Annes Bridging Loan as previously indicated earlier today."
SM trading was to be allowed from Saturday - when the t&cs said it wouldn't be. Now the t&cs are to be amended to permit this, it won't be tradable on the SM. This seems a bit of a contradiction. Does this mean this loan will become tradable in due course but not as early as Saturday? If so, when? There is an entire thread discussing this. Basicaly it was an error saying the loan would be tradeable as it breached the existing T&cs and after take legal advice the exiting t&cs are being applied and the loan will not be tradeable whilst in default. However, going forward the t&cs may be amended to permit trading of default loans at MTs discretion. If so amended those t&cs would apply to future defaults going forward but not the current one.
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elliotn
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Post by elliotn on Aug 25, 2017 2:43:05 GMT
The update on the web site still shows it as being made SM'able Saturday 1pm... Now that has gone and I'm slightly confused. In the latest update MT say - "............ due to demand from MoneyThing lenders, we are intending to allow secondary market trading in defaulted loans, subject to clear risk warnings being provided to any would be purchaser of such loans that the loan is in default and warning of the additional risks involved with purchasing a defaulted loan on the secondary market. We will update the Lender Terms and Conditions in due course to reflect this change."But then it says - "In the meantime, as per our current Lender Terms and Conditions, we will no longer be enabling secondary market trading in (MTAT788) Lytham St Annes Bridging Loan as previously indicated earlier today."
SM trading was to be allowed from Saturday - when the t&cs said it wouldn't be. Now the t&cs are to be amended to permit this, it won't be tradable on the SM. This seems a bit of a contradiction. Does this mean this loan will become tradable in due course but not as early as Saturday? If so, when?For the record, my view is that loan parts should be tradable in defaulted loans - but only if there is a very clear warning against the loan (in red) that the loan is in default and the arrangements as regards default interest etc. are clearly set out against that loan. I'm led to believe there a few investors happy to buy into such loans given the higher default interest rate and their tax arrangements in the event of a loss. Also, to protect people who were drunk or who clicked the wrong button, perhaps it would be good to offer a manual investment reversal process within 24 hours of the purchase. A sort of cooling off period to help people who have made a mistake and started panicking? (Don't know, just a late night thought that maybe an extra level of protection would be desirable in such cases). I don't think you'll be able to unwind drunken purchases, the seller might be bit miffed to have their capital taken back and platforms are turning away from holding loan parts too.
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elliotn
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Post by elliotn on Aug 25, 2017 2:46:28 GMT
Had it been a couple of the other loans, those that crop up with monotonous regularity, I think we could have said 'coincidence'. Not with this one, though I didn't see any and I was very active on MT and forums today, and 709 shows NO purchases today, as I was waiting on the repayment so I could withdraw the funds (Edinburgh) Selling on 23rd (day before default), I managed to finish off a recent doubling of my holding in this rare beast.
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averageguy
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Post by averageguy on Aug 25, 2017 8:44:38 GMT
Nothing like a default to concentrate the mind and your wallet
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Post by geraldine1210 on Aug 26, 2017 5:23:43 GMT
MoneyThing can you tell us after the short tolerance period passed, why you did not provide us with an update when the first interest payment was missed?
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Post by MoneyThing on Aug 26, 2017 9:52:21 GMT
MoneyThing can you tell us after the short tolerance period passed, why you did not provide us with an update when the first interest payment was missed? Morning. Happy to share this information and explain the course of events which prompted our action, however I will do this after this process is complete as a debrief. Regards, Ed.
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hantsowl
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Post by hantsowl on Aug 26, 2017 12:10:05 GMT
MoneyThing can you tell us after the short tolerance period passed, why you did not provide us with an update when the first interest payment was missed? Morning. Happy to share this information and explain the course of events which prompted our action, however I will do this after this process is complete as a debrief. Regards, Ed. Well, 1pm has been and gone and still no SM activity possible. Is there a new time for when this is likely to happen?
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SteveT
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Post by SteveT on Aug 26, 2017 12:11:27 GMT
Morning. Happy to share this information and explain the course of events which prompted our action, however I will do this after this process is complete as a debrief. Regards, Ed. Well, 1pm has been and gone and still no SM activity possible. Is there a new time for when this is likely to happen? It's not going to, as per the update on the loan
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Post by geraldine1210 on Aug 26, 2017 12:16:34 GMT
MoneyThing can you tell us after the short tolerance period passed, why you did not provide us with an update when the first interest payment was missed? Morning. Happy to share this information and explain the course of events which prompted our action, however I will do this after this process is complete as a debrief. Regards, Ed. Thank you Ed. Are we to understand MoneyThing, that this debrief until after the administrators have completed their business?
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Post by MoneyThing on Aug 26, 2017 13:22:16 GMT
Morning. Happy to share this information and explain the course of events which prompted our action, however I will do this after this process is complete as a debrief. Regards, Ed. Thank you Ed. Are we to understand MoneyThing , that this debrief until after the administrators have completed their business? Yes. Regards, Ed
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elliotn
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Post by elliotn on Aug 26, 2017 14:00:31 GMT
MoneyThing can you tell us after the short tolerance period passed, why you did not provide us with an update when the first interest payment was missed? Morning. Happy to share this information and explain the course of events which prompted our action, however I will do this after this process is complete as a debrief. Regards, Ed. MoneyThing NOT good enough. Please commit now to telling your investors by the next working day that a borrower has missed their payment under your Support function (updating as necessary for any technical glitch or delay only when paid - note this is regardless of whether MT have paid it and hidden the missed payment from the knowledge of investors) - the other platforms I invest in do this as a matter of course. We should nor expect the 1st update of a mid-term loan to be confirmation of its default without any prior notification where there has been non-payment. I regard this as being close to professionally negligent.
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seeingred
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Post by seeingred on Aug 26, 2017 15:27:33 GMT
I'm not certain that a borrower (who might have many loans on a platform) should necessarily be put in the proverbial stocks immediately there is one missed payment.
Before passing judgement, I'd wait to hear what Ed has to say next week.
I might be annoyed if I had bought into this loan when it was known (internally to MT) to be in possible trouble.
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liso
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Post by liso on Aug 26, 2017 15:52:06 GMT
I have had misgivings about MT for a while, specially in regard to their (lack of) loan updates. There have been several requests from this forum for regular updates, which generally received a reply from Ed/Sophie along the lines of "in the next few days". Updates were slow in coming, in dribs and drabs, and it felt at times like pulling teeth. AFAIK, though I may be wrong in which case I apologise, the update on MTAT788 came only with the default.
I have sold off 50% of my holdings.
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Post by MoneyThing on Aug 26, 2017 16:00:26 GMT
Morning. Happy to share this information and explain the course of events which prompted our action, however I will do this after this process is complete as a debrief. Regards, Ed. MoneyThing NOT good enough. Please commit NOW to telling your investors by the next working day that a borrower has MISSED their payment under your Support function (updating as necessary for any technical glitch or delay only when paid - note this is regardless of whether MT have paid it and hidden the missed payment from the knowledge of investors) - the other platforms I invest in do this as a matter of course. We should NOT expect the 1st update of a mid-term loan to be confirmation of its DEFAULT without any prior notification where there has been NON-PAYMENT. I regard this as professionally NEGLIGENT, Ed. As I can no longer trust your platform, I liquidated 35% of my holding to ensure every loan was inside tolerance for future defaults without any prior notification. By a long margin the worst communication of any platform I have invested in. Afternoon elliotm, I do appreciate your and other lenders frustration. I did however ask if lenders could wait until the debrief and at which time I will be happy to hold our hands up if we have done wrong. However it would be inappropriate to discuss the events whilst in the middle of this process as it could easily have an adverse effect on the ability of the Administrator to do their job as effectively. If you have decided you wish out then this is your decision and perhaps you might revisit this decision after the post-mortem. Kind regards, Ed
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hazellend
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Post by hazellend on Aug 26, 2017 16:04:26 GMT
MT are probably the best of an admittedly bad bunch when it comes to communication. I feel Ed has earned trust, from me at least.
I am definitely planning on increasing rather than decreasing my MT holdings, dependent on loan quality (no more paisley junk etc)
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