poppyland
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Post by poppyland on Mar 2, 2018 10:04:33 GMT
Did MT have loans that go into default two days ago? It is going to take a long time for this administration to be sorted out. My consolation to myself is I am still young and have a stable job so I can earn back the money that I have lost from my day to day job quickly. On a brighter side, we have gained some valuable experience from this and will hopefully make us better investors in the future. The MT loan that went into default was (MTAS934) 2nd Student D*******t in Ply***th (to avoid the mods getting on my case). I'd only been in it a few weeks. I have no idea how they will dispose of it, but perhaps if they haven't started building yet, they can sell the site to another developer. I'm still of working age too, and can also recuperate losses that way, so on one level, it's not too big a deal. I feel sorry for people who are retired and dependent on the income from their P2P investments. I'm not giving up on P2P, but will certainly be more cautious in the future. I've mentally ring-fenced all my stuck loans and don't worry about them, and am enjoying watching my ABL investments growing. Fortunately the bulk of our money was transferred to ABL before the problems on Coll, Lendy etc began.
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withnell
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Post by withnell on Mar 2, 2018 10:04:43 GMT
Did MT have loans that go into default two days ago? My consolation to myself is I am still young and have a stable job so I can earn back the money that I have lost from my day to day job quickly. We've not actually lost anything so far, beyond not being able to reinvest the Feb interest! The company that administer our loans (between us as lenders and the borrower) has gone into administration - there's been no suggestion so far of fraud on the part of the Collateral board. Think of it like owning a leasehold flat - if the managing company goes into administration, the communal areas might not be cleaned for a few weeks while a new agent is found, but you don't lose your flat (or even part of your flat)
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james100
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Post by james100 on Mar 2, 2018 10:14:20 GMT
One issue which I have not yet seen mentioned anywhere in this thread (as far as I recall) is this: assuming it takes many weeks for the administrator to unravel the situation at Collateral, what do we all tell the tax man in the coming months? Do we have to delay submitting Tax Returns until we have accurate information? Could we be prudent and assume much lost capital, let alone interest, especially if it suits us to offset gains this year? Are we perhaps deemed to have already received the interest, even if we rolled it over into another loan straight away (as I usually do) and it is potentially lost? 1) No delay required, you can submit provisional figures with explanation as necessary and update when the actuals are released, but I fully expect read-only website to be available to download tax statements OR these to be emailed to us since the data (at least up to and including the Feb interest run) is on system and must be reported by them to HMRC anyway in a timely fashion as a company that continues to trade (albeit now under supervision) - the hassle factor of not dealing with a such generic requirement will make it happen, if nothing else; 2) No, unless you have been notified of a loan default which is deemed partly/wholly irrecoverable, or sufficient info to have a fact-based discussion with HMRC about why you have filed it as such (to date I don't think Collateral has any un-recovered defaults so you'd need some evidence to substantiate your claim); 3) Yes, interest was paid as such and could have been removed. Even if it were an automatic rollover account, I assume it would work as per equities i.e. the "notional distribution" on accumulation units are classified as fully-fledged dividend payments for taxation purposes....also Ratesetter etc automatic reinvestment. Just my personal guesses...
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Post by p2pimpressed on Mar 2, 2018 10:26:57 GMT
One issue which I have not yet seen mentioned anywhere in this thread (as far as I recall) is this: assuming it takes many weeks for the administrator to unravel the situation at Collateral, what do we all tell the tax man in the coming months? Do we have to delay submitting Tax Returns until we have accurate information? Could we be prudent and assume much lost capital, let alone interest, especially if it suits us to offset gains this year? Are we perhaps deemed to have already received the interest, even if we rolled it over into another loan straight away (as I usually do) and it is potentially lost? 1) No delay required, you can submit provisional figures with explanation as necessary and update when the actuals are released, but I fully expect read-only website to be available to download tax statements OR these to be emailed to us since the data (at least up to and including the Feb interest run) is on system and must be reported by them to HMRC anyway in a timely fashion as a company that continues to trade (albeit now under supervision) - the hassle factor of not dealing with a such generic requirement will make it happen, if nothing else; 2) No, unless you have been notified of a loan default which is deemed partly/wholly irrecoverable, or sufficient info to have a fact-based discussion with HMRC about why you have filed it as such (to date I don't think Collateral has any un-recovered defaults so you'd need some evidence to substantiate your claim); 3) Yes, interest was paid as such and could have been removed. Even if it were an automatic rollover account, I assume it would work as per equities i.e. the "notional distribution" on accumulation units are classified as fully-fledged dividend payments for taxation purposes....also Ratesetter etc automatic reinvestment. Just my personal guesses... Can you please explain how do you think Collateral is actually going reporting interest received and payments made to lenders?
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withnell
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Post by withnell on Mar 2, 2018 10:30:26 GMT
The Administrator will turn the website back on, but without the ability to trade - per the info posted elsewhere on this forum, they're aiming for next week
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Post by elephantrosie on Mar 2, 2018 10:51:58 GMT
Did MT have loans that go into default two days ago? It is going to take a long time for this administration to be sorted out. My consolation to myself is I am still young and have a stable job so I can earn back the money that I have lost from my day to day job quickly. On a brighter side, we have gained some valuable experience from this and will hopefully make us better investors in the future. The MT loan that went into default was (MTAS934) 2nd Student D*******t in Ply***th (to avoid the mods getting on my case). I'd only been in it a few weeks. I have no idea how they will dispose of it, but perhaps if they haven't started building yet, they can sell the site to another developer. I'm still of working age too, and can also recuperate losses that way, so on one level, it's not too big a deal. I feel sorry for people who are retired and dependent on the income from their P2P investments. I'm not giving up on P2P, but will certainly be more cautious in the future. I've mentally ring-fenced all my stuck loans and don't worry about them, and am enjoying watching my ABL investments growing. Fortunately the bulk of our money was transferred to ABL before the problems on Coll, Lendy etc began. oh i see it was the second loan of it.
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DeafEater
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Post by DeafEater on Mar 2, 2018 11:03:21 GMT
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Post by dualinvestor on Mar 2, 2018 11:05:02 GMT
so according to letter we just sit tight and get paid as the money is repaid? subject to the performance of each loan you are in, yes
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hantsowl
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Post by hantsowl on Mar 2, 2018 11:48:17 GMT
They are both there. Don't forget, there are 2 spreadsheets. One for 'Available' loans and the other for 'Fully Funded' loans. 588 is in FFL. 589 is in AL. Thanks hantsowl . I obviously didn't look at my own data! Thank you for the spreadsheets. 👍
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james100
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Post by james100 on Mar 2, 2018 11:55:30 GMT
1) No delay required, you can submit provisional figures with explanation as necessary and update when the actuals are released, but I fully expect read-only website to be available to download tax statements OR these to be emailed to us since the data (at least up to and including the Feb interest run) is on system and must be reported by them to HMRC anyway in a timely fashion as a company that continues to trade (albeit now under supervision) - the hassle factor of not dealing with a such generic requirement will make it happen, if nothing else; 2) No, unless you have been notified of a loan default which is deemed partly/wholly irrecoverable, or sufficient info to have a fact-based discussion with HMRC about why you have filed it as such (to date I don't think Collateral has any un-recovered defaults so you'd need some evidence to substantiate your claim); 3) Yes, interest was paid as such and could have been removed. Even if it were an automatic rollover account, I assume it would work as per equities i.e. the "notional distribution" on accumulation units are classified as fully-fledged dividend payments for taxation purposes....also Ratesetter etc automatic reinvestment. Just my personal guesses... Can you please explain how do you think Collateral is actually going reporting interest received and payments made to lenders? Not sure I completely understand the question, but my point was that since Collateral continues to trade (under the administrator's supervision) according to the "Notice of Administration" letter, I assume they maintain their reporting obligations to HMRC regarding interest and thus can duplicate that easily for individual lenders. Until 26th system shutdown (at least), the interest data was automatically calculated based on categorized account activities and so was available on an ongoing basis, not just at the end of the tax year as a 1-off report. I ran an interim tax statement a couple of weeks ago (after the Feb 1 interest run) so can confirm it was working fine... What happens in reporting terms hereon with regard to the split of repayment and interest components is up for grabs, but I'd imagine a non-trade withdrawal-only version of the current system (with category of payment logged per transaction and tax report functionality) is the fastest, most accurate and cheapest way to do this. We'll know more in the next few weeks, I'm sure. www.p2pfinancenews.co.uk/2017/01/05/p2p-hmrc-tax-interest/ (January 201 7) gives a bit more context about info exchange between platforms, HMRC and lenders which underpins my previous comment that this will be sorted out because it's simply too much hassle not to sort out.
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Post by elephantrosie on Mar 2, 2018 13:42:04 GMT
so according to letter we just sit tight and get paid as the money is repaid? subject to the performance of each loan you are in, yes is the interest then paid altogether at the end of each loan (assuming the loan do not default)? or are they paid monthly?
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moist
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Post by moist on Mar 2, 2018 13:44:40 GMT
subject to the performance of each loan you are in, yes is the interest then paid altogether at the end of each loan (assuming the loan do not default)? or are they paid monthly? Jessica said at the end, on repayment.
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Post by dudester on Mar 2, 2018 13:53:19 GMT
Can someone clear this up for me: what if a borrower decides not to repay at term? Why would the administrator care? It's the lenders' money which would be lost - why would the administrator pursue expensive legal proceedings if his main concern are Collateral and creditors. There is nothing to gain for Collateral as the interest rate spread has already been collected and at this stage there is no point in attracting more lenders by having a default-free record.
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SteveT
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Post by SteveT on Mar 2, 2018 13:55:13 GMT
Can someone clear this up for me: what if a borrower decides not to repay at term? Why would the administrator care? It's the lenders' money which would be lost - why would the administrator pursue expensive legal proceedings if his main concern are Collateral and creditors. There is nothing to gain for Collateral as the interest rate spread has already been collected and at this stage there is no point in attracting more lenders by having a default-free record. On the contrary, assuming that the rates payable by COL borrowers is higher than the rates payable to COL lenders. Even where interest was retained from the loan at draw-down, there would be default interest payable (and possibly other fees) if a loan is not repaid. Also, the Administrator's task, until deemed otherwise impractical, is to keep the company running as a going concern, not least to maximise its value against the possibility of a potential sale.
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Post by dudester on Mar 2, 2018 13:57:02 GMT
Can someone clear this up for me: what if a borrower decides not to repay at term? Why would the administrator care? It's the lenders' money which would be lost - why would the administrator pursue expensive legal proceedings if his main concern are Collateral and creditors. There is nothing to gain for Collateral as the interest rate spread has already been collected and at this stage there is no point in attracting more lenders by having a default-free record. On the contrary, assuming that the rates payable by COL borrowers is higher than the rates payable to COL lenders. yes that's what i mean - we might lend at 12% but collateral collects 15% from the borrower for example. But what if the borrower decides not to repay at maturity. At this stage collateral would have collected all spread and arrangement fees already.
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