cb25
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Post by cb25 on Jul 5, 2018 13:10:26 GMT
Is this still the case? I have been clicking everything everywhere and but cannot see PF size mentioned... on the GEIA banner, click on "show more" and read to the end Thanks. Just done that on GBBA1, which shows PF of £799,000. AC better hope they don't need to use it with £6m defaulted loan 227.
The relatively small size of the PF might explain why (imo) AC seem to be so lenient towards 227's Borrower, allowing them to ask Lenders for a 6-month free interest period (worth £358K) whilst lending a director £411K interest free (!). If AC had to take recovery action and the proceeds came up short, the PF might be under pressure. (I know the assets look as though they easily cover the loan, but assets are only worth what you can sell them for on the day).
If loan 227 goes the way of 439/440 (which I'm not in) - "would lenders accept 85% ?" - I'll be very sure to ask if AC will be making up the shortfall using the PF. Somehow I doubt it as they'll be able to say "lenders agreed to take a 'haircut'". Surprised me not to see a Q&A entry on 439 or 440 asking about the PF. Perhaps lenders phoned/emailed.
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alibaba
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Post by alibaba on Jul 5, 2018 16:46:19 GMT
- With the exception of paying late interest on non-defaulted loans for the automated accounts the AC PF only provides discretionary protection for capital loss AFTER all recovery options have been concluded. So there is no protection provided at the point of default and no protection for loss of interest during this recovery process which may take years, typically 2-3 years is not uncommon. Yes this means you have to wait for your money back, it's not like RateSetter!
Hi Happy Very simple question requiring very simple answer :- with reference to your comment above for automated account default will I receive my outstanding capital from the PF at some time in the future (2/3 years) or is it possible that AC may decide not to pay out?
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ashtondav
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Post by ashtondav on Jul 5, 2018 17:08:42 GMT
It’s a discretionary PF. It may not pay out.
Until these issues are resolved I remain only in QAA with trigger finger at the ready. We live in exciting times.
I am now trying Lendingworks FWIW...
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billt
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Post by billt on Jul 5, 2018 17:56:35 GMT
Thanks Dave, I will press the trigger tomorrow and will begin the removal of my six figures and try pastures new.
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dc848
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Post by dc848 on Jul 5, 2018 19:58:35 GMT
Id est quod id est.
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Post by madmitch on Jul 6, 2018 1:05:33 GMT
We (including OH) found ourselves in the same position as Brainer mentioned earlier. The naivety of our actions investing in the so called 'black box' accounts slowly being revealed by AC (and this forum) over a period of time. We certainly totally misjudged the lottery aspect.
As a consequence we 'pulled the trigger' some time ago on a number of 5 fig. investments. Like so many others we are now stuck. Unable to clear a position in a reasonable timeframe. We are resigned to the fact that these will be hanging around our necks for......what shall we say.......3yrs? Who knows what the final opportunity cost will be.
Eventually, we all have to clear a position(laws of nature).
Personally, I've found all the remarks about 'the new algorithm' and diversification solving this issue, a bit of a red herring. Any headline rate comes with an accepted certain level of risk, i.e. default. Whether this is represented by five loans or fifty loans is immaterial since circa that percentage of the loan book will always be lost.
The GBBA2 and PSA accounts are only the younger siblings of GBBA1. If it takes, say, a three year cycle to gain(and start clearing) your full complement of defaults, then the current default levels on both of those accounts are set to triple.
We will do our best to stay alive for the next three years? and ensure no nightmare scenario for our executors/beneficiaries(children) to pick up.
Perhaps another thread entitled, "Upon Death...." is called for?
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alibaba
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Post by alibaba on Jul 6, 2018 4:31:18 GMT
Thanks Dave, I will press the trigger tomorrow and will begin the removal of my six figures and try pastures new. There's no perfect platform. Why not spread it out over a number of probably ok platforms rather than holding out for that perfect one?😀
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alibaba
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Post by alibaba on Jul 6, 2018 4:37:05 GMT
I know that there is no perfect platform I am also in B.C., BM, PL, HNW and TC (for my sins) but AC just seems to become more and more smoke and mirrors by the day
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angrysaveruk
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Say No To T.D.S
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Post by angrysaveruk on Jul 6, 2018 9:48:05 GMT
AC has just lent 1m to complete a loan for sale so I think all this criticism is a bit unfair. I would agree that the size of some of the loans are a bit large but a lot of the loans coming through are a lot smaller.
I would agree that AC faces some challenges over the next year but their initial response has been good so far in my opinion.
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ton27
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Post by ton27 on Jul 6, 2018 13:16:50 GMT
There has been a lot of Development Loans recently (and many have plenty to sell on the SM) but is there any way of knowing (I appreciate one could go through the 760 odd loans one-by-one to find out) the total value of the funds needed to complete these developments? It is the development loans which have caused and is still causing Lendy plenty of problems although the DLs are much bigger on L and therefore relatively more significant.
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Brainer
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Post by Brainer on Jul 7, 2018 0:41:08 GMT
AC has just lent 1m to complete a loan for sale so I think all this criticism is a bit unfair. I would agree that the size of some of the loans are a bit large but a lot of the loans coming through are a lot smaller. I would agree that AC faces some challenges over the next year but their initial response has been good so far in my opinion. People aren't criticising AC for the recovery, we are criticising them for getting many of us so heavily exposed through the poor design/implementation/transparency of the (early) automated accounts.
I suspect if AC were able to be honest they would concede they have failed a lot of their customers here. Customers who likely decided to use these accounts because they didn't have the time/expertise/confidence to manually select loans and trusted that AC would do a better job than they could themselves. Perhaps the fact that AC are willing to sink seven figures of their own funds (interest free) to help sort this mess out backs up this conjecture? And as someone who IIRC is in these loans in the MLA, perhaps you are fortuitously benefiting from this enhanced recovery strategy? Would AC be going to these lengths if the loans were 100% MLA funded?
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ashtondav
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Post by ashtondav on Jul 7, 2018 7:18:56 GMT
AC has just lent 1m to complete a loan for sale . Sorry, could you explain what that means? I haven’t seen anything about this. Thanks.
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angrysaveruk
Member of DD Central
Say No To T.D.S
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Post by angrysaveruk on Jul 7, 2018 8:03:26 GMT
AC has just lent 1m to complete a loan for sale . Sorry, could you explain what that means? I haven’t seen anything about this. Thanks. One of the proposals put forward for a couple of the loans that are currently suspended is for AC to advance a further 1 million to complete the project(s) for sale to a buyer. As a lender on these loans I am very pleased with this proposal.
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Post by brightspark on Jul 7, 2018 8:37:26 GMT
I am not into these loans so am unfamiliar with the proposals. I am curious to know who is to advance a further £1M and on what terms. Second charge? Higher interest rate? etc etc
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alibaba
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Post by alibaba on Jul 7, 2018 10:18:22 GMT
AC has just lent 1m to complete a loan for sale so I think all this criticism is a bit unfair. I would agree that the size of some of the loans are a bit large but a lot of the loans coming through are a lot smaller. I would agree that AC faces some challenges over the next year but their initial response has been good so far in my opinion. People aren't criticising AC for the recovery, we are criticising them for getting many of us so heavily exposed through the poor design/implementation/transparency of the (early) automated accounts.
I suspect if AC were able to be honest they would concede they have failed a lot of their customers here. Customers who likely decided to use these accounts because they didn't have the time/expertise/confidence to manually select loans and trusted that AC would do a better job than they could themselves. Perhaps the fact that AC are willing to sink seven figures of their own funds (interest free) to help sort this mess out backs up this conjecture? And as someone who IIRC is in these loans in the MLA, perhaps you are fortuitously benefiting from this enhanced recovery strategy? Would AC be going to these lengths if the loans were 100% MLA funded?
Hi Brainer 100% agree with the your post
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