hazellend
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Post by hazellend on Jan 31, 2018 20:44:29 GMT
Am I correct in saying that bonus interest only goes on for 6 months overdue.
Does that mean the interest rate drops back to standard 1% after 6 months?
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jan 31, 2018 21:14:21 GMT
IMO "Bonus interest" is a figment of Lendy's imagination which no lender will ever receive because any loan reaching that stage is not going to return the capital let alone interest. I would love to be proved wrong on PBL094 or DFL001.
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poppyland
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Post by poppyland on Feb 1, 2018 0:11:49 GMT
IMO "Bonus interest" is a figment of Lendy's imagination which no lender will ever receive because any loan reaching that stage is not going to return the capital let alone interest. I would love to be proved wrong on PBL094 or DFL001. I fear you are right about the bonus interest. For some reason I find it extremely irritating to see a fictional interest figure ticking up higher and higher every day while I wait to get back some unknown percentage of my capital at some vague, unspecified, but probably far distant, time.
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Post by df on Feb 1, 2018 1:01:23 GMT
IMO "Bonus interest" is a figment of Lendy's imagination which no lender will ever receive because any loan reaching that stage is not going to return the capital let alone interest. I would love to be proved wrong on PBL094 or DFL001. I fear you are right about the bonus interest. For some reason I find it extremely irritating to see a fictional interest figure ticking up higher and higher every day while I wait to get back some unknown percentage of my capital at some vague, unspecified, but probably far distant, time. Fictional in deed. It was a replacement for SBL (SS used to pay monthly interest for up to -90 days). I'd be happy if I get 50% of capital back from DFL001/2
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ingwer
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Post by ingwer on Feb 1, 2018 7:19:57 GMT
I thought there was a note in a previous thread that stated that DFL001 and DFL002 that came under the terms of Lendy's initial "contract" that meant that Lendy was in some way ultimately responsible for these 2 loans. Can anyone else remember / clarify / post a link ?
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Post by skint4achange on Feb 1, 2018 8:17:21 GMT
Just a quick note, the bonus interest has been paid to me (And others) on a couple of occasions, including one loan where the payment was not even expected. I received bonus interest on PBL133 which was taken out of IA and into IOA when the second charge loan was drawn down.
However, we had a saying in the forces, it is called a bonus for a reason, don't count on it until it's in the bank!
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ingwer
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Post by ingwer on Feb 1, 2018 11:23:38 GMT
Thanks cat.
It may also mean that Lendy is focusing on getting the best possible deal however long it takes.
Taking the old T&Cs a step further then, one problem with longer and longer delays is that the due interest to lenders goes up and up. If I was Lendy, then I might be considering offering to buy lenders loan parts and thus take the inevitable now rather than later. Could save Lendy some pennies... Or am I being too simplistic ?
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amphoria
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Post by amphoria on Feb 1, 2018 11:48:49 GMT
If you go into the loan description and then loan particulars and scroll to the bottom there is a button labelled View Loan Terms. Although they are not headed Old Loan Terms and New Loan Terms, the old loan terms have a clause 4.5 which states that "By funding a loan, you are agreeing to enter into a Loan Agreement with Lendy".
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michaelc
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Say No To T.D.S.
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Post by michaelc on Feb 1, 2018 14:25:32 GMT
And still the OPs IMO valid question remains unanswered (unfortunately I don't know the answer).
As an aside, I do think it is good if platforms impose "punitive" interest rates the day a loan is late. It focuses minds and on those rare occasions where the valuations were reasonable the lenders are adequately compensated.
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Post by loftankerman on Feb 1, 2018 16:10:21 GMT
And still the OPs IMO valid question remains unanswered (unfortunately I don't know the answer). As an aside, I do think it is good if platforms impose "punitive" interest rates the day a loan is late. It focuses minds and on those rare occasions where the valuations were reasonable the lenders are adequately compensated. I agree and benefited from that a couple of times elsewhere at the back end of last year. However, given the quality / apparent integrity of some Lendy borrowers, punitive interest rates would be something of an irrelevance when seeing a return of capital looked a bit of a stretch.
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Post by Whitbourne on Feb 1, 2018 21:03:31 GMT
And still the OPs IMO valid question remains unanswered (unfortunately I don't know the answer). 'Yes' is the answer. After 180 days the bonus gets to 2.96% and ceases to accrue. The loan interest continues at 1% per month indefinitely. Both figures are of course hypothetical until the money is recovered and paid over 
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Feb 1, 2018 22:07:24 GMT
And still the OPs IMO valid question remains unanswered (unfortunately I don't know the answer). 'Yes' is the answer. After 180 days the bonus gets to 2.96% and ceases to accrue. The loan interest continues at 1% per month indefinitely. Both figures are of course hypothetical until the money is recovered and paid over My assumption is that 0 to -180 days is called the tolerance period, which allows the borrower to get their act together and repay the loan. Beyond 180 days the borrower is still charged a default rate, but Lendy needs this extra money to cover the receiver recovery costs. However, the most recent loan to go past -180 days (PBL120) hasn't called in the receivers yet. Perhaps the bonus scheme should keep paying a bonus beyond -180 days if the receivers aren't instructed. Edit: If you buy a part in default you get a message which doesn't say the bonus stops after 180 days. The relevant part of the message is "This loan is currently in arrears (the borrower is not making their contracted payments or the loan has expired). The debt is being pursued, but we cannot guarantee repayment of the loan in full. A default fee is charged to borrowers in arrears, and you will be entitled to a portion of this fee (enhanced monthly interest rate of 50% of the existing monthly interest rate). You will receive this fee (and the contracted loan repayments), when the borrower repays their arrears, or the property is repossessed (and sufficient equity is available after the subsequent sale)."
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hazellend
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Post by hazellend on Feb 2, 2018 8:26:18 GMT
It is PBL 120 I am thinking about, which should have a very low LTV by now so good chance of full recovery, interest and bonus.
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Post by gaspilot on Feb 7, 2018 7:18:16 GMT
Can somebody explain how the bonus interest is paid if you purchase or sell a loan in the 'tolerance period'?
Does the seller get the bonus interest up to the time it's sold or does it go to the buyer totally? If, and when, the capital is repaid obviously.
I'm thinking it's the latter.
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elliotn
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Post by elliotn on Feb 7, 2018 7:28:13 GMT
Can somebody explain how the bonus interest is paid if you purchase or sell a loan in the 'tolerance period'? Does the seller get the bonus interest up to the time it's sold or does it go to the buyer totally? If, and when, the capital is repaid obviously. I'm thinking it's the latter. Accrued interest is paid based on days held, bonus is paid to the final holder for assuming the default risk.
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