ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Mar 2, 2018 14:00:57 GMT
Also, with nought to gain now by being over accommodating with Borrowers, I imagine the Administrator might just be rather a bit more professional (ie aggressive) with late/no payers?
I would like to see this happen, too many Borrowers see P2P as a soft touch, often aided and abetted by The Platform, and lead Lenders on a merry dance. Which is very unfortunate of course for the honest Borrowers.
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Post by dudester on Mar 2, 2018 14:06:19 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. 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. that's a fair point re the sale of the platform. My base case was that they would just wind the company down.
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rogerbu
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Post by rogerbu on Mar 2, 2018 14:12:59 GMT
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. Is Jessica's comment saying that all interest will be held back till a loan repays, then interest will be payed at the same time? If so, was this in an email somewhere or was it in a phone call? If the interest is being held back, can we expect interest on interest?
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Post by elephantrosie on Mar 2, 2018 14:22:42 GMT
Jessica said at the end, on repayment. Is Jessica's comment saying that all interest will be held back till a loan repays, then interest will be payed at the same time? If so, was this in an email somewhere or was it in a phone call? If the interest is being held back, can we expect interest on interest? lol interest on interest. that would be icing on icing.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Mar 2, 2018 14:23:00 GMT
star dust unless the administrator allows renewals of loans to take place then there are no incoming platform fees from borrowers as they paid up front didn't they? I am open to correction on that point though.
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star dust
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Post by star dust on Mar 2, 2018 14:32:03 GMT
star dust unless the administrator allows renewals of loans to take place then there are no incoming platform fees from borrowers as they paid up front didn't they? I am open to correction on that point though. Not sure why you are asking me I have no hard and fast information, as I'm leaving the Collateral Administrator alone for the time being; however, common sense would suggest that is probably correct, but there may also be late payment/redemption penalty fee's or some such. Were you responding to the post I mistakenly made in this thread a few minutes ago and have now moved here - that post was just two re-quotes of moist's comments and the person who spoke to them on the phone was moist.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Mar 2, 2018 14:54:24 GMT
star dust unless the administrator allows renewals of loans to take place then there are no incoming platform fees from borrowers as they paid up front didn't they? I am open to correction on that point though. Not sure why you are asking me I have no hard and fast information, as I'm leaving the Collateral Administrator alone for the time being; however, common sense would suggest that is probably correct, but there may also be late payment/redemption penalty fee's or some such. Were you responding to the post I mistakenly made in this thread a few minutes ago and have now moved here - that post was just two re-quotes of moist's comments and the person who spoke to them on the phone was moist. That was where I picked your id up from star dust. I see what you were doing now. I am also leaving them be as anything they have said that has been reported via 3rd parties needs a large piece of sodium and chlorine.
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hantsowl
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Post by hantsowl on Mar 2, 2018 15:08:57 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. Don't forget that with most of the bling loans Collateral actually hold the item (or so we were told). If the borrower does not pay up, the item will be presumably sold at auction. Also, most of the grouped asset bling loans are from jewellery traders who would probably want the asset back and avoid any credit rating hits to their business.
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Post by dualinvestor on Mar 2, 2018 15:10:05 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? Have to wait and see i am afraid subject to what moist has said
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shimself
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Post by shimself on Mar 2, 2018 15:16:10 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. Administrators are normally paid according to the amounts they recover so for slam dunk sizeable amounts they would probably bother. I don't know what the FCA's rules (which may have been followed at the time) say about what needs to be in the wotsitcalled the agreement with the company who are lined up to do this recovery. It's not the same as a usual administration which are not as a matter of routine envisaged and part paid for in advance. Having said which the senior person G C managed to write a complete howler abot FSCS in his first communication, so there's learning to be done on all sides. Having also said which you never know they might manage to switch the business to offshore, out of the FCA's jurisdiction
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Post by angrykittens on Mar 2, 2018 15:16:28 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. Don't forget that with most of the bling loans Collateral actually hold the item (or so we were told). If the borrower does not pay up, the item will be presumably sold at auction. Also, most of the grouped asset bling loans are from jewellery traders who would probably want the asset back and avoid any credit rating hits to their business. Almost all of the Bling Loans (except grouped asset) are underwritten by trade partners for the full value, should be no muss no fuss to get all of these closed off within a week of the due date if the administrator takes a hard line
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upland
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Post by upland on Mar 2, 2018 16:27:00 GMT
I received an email from I broker that I use (BeaufortsSecurities) which was about new T&Cs yesterday. I have just clicked the link to examine the changes only to find that they have just gone into administration at the hands of the FCA. Unlike our failed Collateral website the Beauforts site has been replaced by an informative page of contact numbers , links and addresses and explanations. I wish that we had that by now , it would be a bit more professional.
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dermot
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Post by dermot on Mar 2, 2018 16:46:09 GMT
I'd be happier if Unbolted took over all the bling ....
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Nomad
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Post by Nomad on Mar 2, 2018 16:49:48 GMT
I received an email from I broker that I use (BeaufortsSecurities) which was about new T&Cs yesterday. I have just clicked the link to examine the changes only to find that they have just gone into administration at the hands of the FCA. Unlike our failed Collateral website the Beauforts site has been replaced by an informative page of contact numbers , links and addresses and explanations. I wish that we had that by now , it would be a bit more professional. Their reviews on Google may help explain their demise!
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dermot
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Post by dermot on Mar 2, 2018 17:02:32 GMT
As I recall, there were several property loans (and a big diamond) due to redeem around now - so I guess we have a test case or two coming up very shortly to see how the whole loanbook might be unwound, though I guess the administrators will need a bit of time to fully take over the reins.
If all those are repaid without fuss, it will get rid of most of my property loans (only £4K in B*lt*n left), leaving lots of bling, with which I feel far more comfortable.
It would be good to get an update from the big B*lt*n borrower, to see how they propose to raise the rest of the finance, but I don't know if that is within the remit of the administrator.
A high proportion of bling (something like 90%?) has been renewed, historically, I wonder how many of those borrowers are in a position to redeem on demand, or will they head off to Unbolted to raise funds.
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