Ukmikk
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Post by Ukmikk on Jan 4, 2018 22:11:51 GMT
Does anybody know if UB has a stated policy on dealing with overdue loans? The reason I ask is that I have a fair few loans which were due several weeks and sometimes months ago but there is no indication of any contact with the client or if and when any recovery action will be taken. Also during this period of inaction does interest continue to accrue on the loan? Apologies if this has been covered before, any pointers or guidance gratefully received, thanks.
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hendragon
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Post by hendragon on Jan 5, 2018 9:15:01 GMT
AFAIK interest does continue to accrue until any loan is repaid. Any answer would also depend on which type of loan, gold trust, provision fund, or a bespoke loan.
Information can be a little sketchy but my impression of Unb is that the process is controlled and I have had no losses on defaults. With my defaulted loans I would describe the process as timely but not immediate. The most overdue was 10 weeks IIRC.
They have recently started informing us by e-mail of the sale of assets to pay defaulted loans (mainly gold).
My impression is that the default process is managed on an individual basis, although updates can be a little vague. I have a particular interest in how one disposal on a Gwen John drawing will proceed, as artwork has had some issues on other sites.
If you need further clarity or explanation you might like to ask Ub. They are pretty good at responding to questions posed by e-mail or chat.
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stub8535
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Post by stub8535 on Jan 5, 2018 9:54:12 GMT
On the overdues screen you will see two columns to the right had side. The first shows what has been tried and results. The second shows what is happening when disposal has been actioned.
I had a specialist bag last year that needed to wait for the right sale. It sold above valuation and all money was returned.
Given that staff have had a couple of weeks away they will not have sent reminder emails etc until late. This has led to a spike in defaults.
None of my defaults have failed to pay back. Most are back inside 2 months.
That said, there are a couple in my list that are of concern in terms of seeming leniency being shown when looked at in the ignorance of all the facts. I will be following these up on Monday if they remain unpaid.
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Ukmikk
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Post by Ukmikk on Jan 5, 2018 18:12:01 GMT
Thanks very much for your replies. When I have a minute I may email UB for some clarification cheers.
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stub8535
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Post by stub8535 on Jan 5, 2018 18:28:55 GMT
Thanks very much for your replies. When I have a minute I may email UB for some clarification cheers. I believe you may be dissappointed if you expect a fully laid out set of actions on defaults. Unbolted use some discretion at times. That discretion is much more conservative than other platforms helped by good communication skills in part imho. I will be interested in the response you recieve. S
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Post by df on Jan 5, 2018 20:29:08 GMT
Does anybody know if UB has a stated policy on dealing with overdue loans? The reason I ask is that I have a fair few loans which were due several weeks and sometimes months ago but there is no indication of any contact with the client or if and when any recovery action will be taken. Also during this period of inaction does interest continue to accrue on the loan? Apologies if this has been covered before, any pointers or guidance gratefully received, thanks. I don't think they have one, but as far as I know nobody had any loss yet. In my own experience, all loans were repaid so far. Overdues are common, the longest one I had was about 3 months, but most were repaid much quicker than that. I think UB is dealing with each overdue/default loan differently in terms of time-scale, but eventually all defaults end up in auction and get sold because they value the items correctly in the first place. I look at overdue loans from time to time just out of curiosity, but never worry about possible losses on UB, they seem to know what they are doing.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 5, 2018 20:58:21 GMT
I also have no idea but suspect they are flexible on a case by case basis whilst being businesslike. I imagine for instance that some near defaulters are known to them for long enough to have established a good track record so such Borrowers benefit from a bit more late repayment leeway? I personally am not concerned at all, they have so far and AFAIK run a highly professional ship and until they (possibly!) sail off course I trust them that they are handling late payers as if it was their own money.Just wish some other Platforms would too, they know who they are.  |
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Ukmikk
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Post by Ukmikk on Jan 6, 2018 15:33:28 GMT
Thanks all for your replies much appreciated. I'm feeling the positivity which is reassuring. I should have made it clearer not all of my defaults have no activity recorded against them only a few of them. AFAIK I have not incurred any losses yet. I'm still not clear whether interest continues to be earned on an overdue loan. I will email UB when I get chance to ask.
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Post by df on Jan 6, 2018 21:00:51 GMT
Thanks all for your replies much appreciated. I'm feeling the positivity which is reassuring. I should have made it clearer not all of my defaults have no activity recorded against them only a few of them. AFAIK I have not incurred any losses yet. I'm still not clear whether interest continues to be earned on an overdue loan. I will email UB when I get chance to ask. Please do let us know if you get the answer.
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jonno
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nil satis nisi optimum
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Post by jonno on Jan 7, 2018 13:33:05 GMT
Thanks all for your replies much appreciated. I'm feeling the positivity which is reassuring. I should have made it clearer not all of my defaults have no activity recorded against them only a few of them. AFAIK I have not incurred any losses yet. I'm still not clear whether interest continues to be earned on an overdue loan. I will email UB when I get chance to ask. I asked them this question many moons ago and they assured me that interest DID accrue on all overdue loans. Thinking about it, given that "portfolio value" is presented on an accruals basis, this would be far more volatile if interest accruals did not continue (at least I think so!) 
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stub8535
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Post by stub8535 on Jan 7, 2018 17:21:44 GMT
As an academic aside I wonder what would happen, in terms of interest, on a late running Islamic compliant loan where "interest" is not paid. I have not checked my overdues list yet to see if any are in this category.
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marka
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Post by marka on Jan 7, 2018 18:21:21 GMT
As an academic aside I wonder what would happen, in terms of interest, on a late running Islamic compliant loan where "interest" is not paid. I have not checked my overdues list yet to see if any are in this category. I imagine there would simply be a payment/charge that was interest in all but name, just as there is for the normal "interest".
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stub8535
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Post by stub8535 on Jan 8, 2018 13:08:23 GMT
I have responses on my overdues dated November or earlier. I have asked for updates to be added to loans in a more timely manner and with better details as this is all that we lenders can see.
My observation about leaway being given to larger borrowers seems correct.
All loans Nov and earlier in my list have open comms going on to bring them to payment or renewal.
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Post by df on Jan 8, 2018 13:33:30 GMT
As an academic aside I wonder what would happen, in terms of interest, on a late running Islamic compliant loan where "interest" is not paid. I have not checked my overdues list yet to see if any are in this category. I don't have anything in this one - I wasn't fast enough (was it gone in about 3 minutes?), but I will be surprised if it will run late.
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stevio
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Post by stevio on Jan 9, 2018 8:05:01 GMT
Has anyone had any losses then on this platform? capital or interest?
I understand there are provision funds, how often are these used?
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