|
|
Post by andrewholgate on Aug 29, 2014 11:31:05 GMT
oldnick asked: I can only apologise that there have been some errors that have slipped through the net. This has not just been on the credit reports but also some complaints on here that emails have not been responded too. I do take a dim view of the latter and all emails should warrant a response. In the last few days I have reiterated to the team the importance of you, our lenders, to this business and that customer service is paramount to our success. In regards to legal documentation, this is undertaken by qualified lawyers for Assetz Capital and is protected by their Professional Indemnity insurance which is sufficient to cover all of the loans they have handled. In addition to this, the original loan documentation suite was drawn up by DWF, one of the UK's largest law firms, and our client partner sits on DWF's executive board. I feel that we are well protected in this area. Apology accepted, but I wonder whether a change of procedure is likely to produce better results than the occasional 'teamtalk'? On the legal side, the permission form that we sign for you to transfer our money was presumably not produced by that legal team, hence the mistake. Does the document still stand as it is, without the I/we at the beginning of the second sentence or are you sending out new paperwork? The document still stands as it is. I accept there is an error in there however with an FCA imposed deadline looming that we need to meet, the error is not material enough to warrant a re-issuing of several thousand letters.
|
|
|
|
Post by andrewholgate on Aug 29, 2014 11:32:46 GMT
(Re I/We) Out of interest, do you have many joint accounts? At present there is no facility for us to have joint personal names on an account. However we do have limited companies that invest through us and they would need to respond as "we" hence oldnick making the point. I will look into the possibility of joint accounts.
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Aug 29, 2014 11:44:13 GMT
So my question you you is would you invest in an ISA that is aimed at P2P and would that be on a cash basis or an ability to trade loan units? Provision fund and/or insurance against losses. Some lenders seem to like this, some don't. If it was offered, would you use it and what cost would you be prepared to pay for it? Yes I would use an ISA, and I would think of the money as cash. If I had a choice I might prefer one that allowed trading, but this would not be the most important thing for me. At the moment any money I put into an ISA I would hope to be able to leave there for a while and not withdraw (and then lose the ISA wrapper). Perhaps more importantly for the industry I would persuade my other half to have an ISA too. I would happily wait six months for a company I already use to produce an ISA rather than going with the first to come along. Tax treatment of losses probably favours P2B over provision funded P2P as my first choice, however it might favour riskier unsecured loans even more. I like RS and the tax treatment means that the fund in their case is most welcome. In principle I like risk if I am adequately compensated, I would happily offer to sell insurance on loans (for a good price), but I suspect that tax position or its complexity would mean that I couldn't. I wouldn't pay more than the expected fair value for a taxpayer who can make no use of a capital loss.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329 
Likes: 11,549
|
Post by ilmoro on Aug 29, 2014 11:48:14 GMT
Could I trouble Andrew for a definitive answer to this one, at p2pindependentforum.com/post/19790/thread -- either as part of the Q&A session or otherwise? (Red***h and High Wyc***e related) ... and when does the IT Team think it will have sorted out the problems on the mis-paid Yorksh***e cashback ... Hi This one might have been overlooked. It refers to the interest promised for the delays on these loans. Do you know when this will be paid?
|
|
|
|
Post by andrewholgate on Aug 29, 2014 11:48:46 GMT
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Aug 29, 2014 11:49:08 GMT
(Re I/We) Out of interest, do you have many joint accounts? At present there is no facility for us to have joint personal names on an account. The consent form says "For joint accounts, both account holders should sign." I was signing it as I had just changed your bank account details.
|
|
|
|
Post by mogzi on Aug 29, 2014 11:51:12 GMT
Do DWF check every document before they are sent to borrowers to check for typos that could have been made by AC whilst completing these documents? I don't doubt templates, I doubt the information entered onto it by AC.
Would DWF's indemnity insurance cover you if you put £20,000 on a loan agreement instead of £200,000? I think not.
|
|
|
|
Post by andrewholgate on Aug 29, 2014 11:56:09 GMT
Could I trouble Andrew for a definitive answer to this one, at p2pindependentforum.com/post/19790/thread -- either as part of the Q&A session or otherwise? (Red***h and High Wyc***e related) ... and when does the IT Team think it will have sorted out the problems on the mis-paid Yorksh***e cashback ... Hi This one might have been overlooked. It refers to the interest promised for the delays on these loans. Do you know when this will be paid? HW deal - The borrower had signed an agreement that fees would be payable as and when we raised the funds. As they didn't proceed, they are now liable for the fees and we are in the process of recovering them. Should we get recovery, any funds due to the affected lenders will be paid, but I must stress this is dependent on the recovery. R - We continue to pursue the borrower for further information but as of today, we have not had a response. Should this drag into next week, we will look to take a more robust stance with the borrower. Y - I thought this had been resolved? If it hasn't please let me know and we will action ASAP.
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Aug 29, 2014 11:56:26 GMT
chris - will there be a feature to search for all discounted units listed on the AM in the new site? That would be a great feature.
|
|
|
|
Post by chris on Aug 29, 2014 11:57:21 GMT
chris - will there be a feature to search for all discounted units listed on the AM in the new site? No plans for this at the moment, but with some of the other changes being made it's one to review in the context of the new systems.
|
|
|
|
Post by andrewholgate on Aug 29, 2014 11:59:01 GMT
Do DWF check every document before they are sent to borrowers to check for typos that could have been made by AC whilst completing these documents? I don't doubt templates, I doubt the information entered onto it by AC. Would DWF's indemnity insurance cover you if you put £20,000 on a loan agreement instead of £200,000? I think not. DWF do not produce the loan documents on every loan. This is done my a firm called GunnerCooke and they fill in all the details. Should there be a mistake of their making, their insurance would cover this. We wanted to ensure that the suitably qualified person completes the documents and these are checked before release by a partner from Gunner Cooke. They also give their undertaking to the Trustees that everything is in order. At all times, it is their PI cover that is at risk, and not AC's
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Aug 29, 2014 12:02:23 GMT
Andrew,
I think that you've been doing SME lending for a while. If companies like those on Assetz are currently paying 12%-14% when interbank rates are <1%, what would they have been paying 6 or 7 years ago when bank repo rate was 5%-6%. Over the next few years as BoE rates rise how much do you see AC rates rising?
At the moment you allow selling at a discount but not a premium. In the future after rates have risen and then fallen would you consider changing this? If I invest in a wind turbine one of the risks is that it won't be built. After it is commissioned I should be able to sell that loan at a premium. Any thoughts?
|
|
|
|
Post by mogzi on Aug 29, 2014 12:02:42 GMT
Do DWF check every document before they are sent to borrowers to check for typos that could have been made by AC whilst completing these documents? I don't doubt templates, I doubt the information entered onto it by AC. Would DWF's indemnity insurance cover you if you put £20,000 on a loan agreement instead of £200,000? I think not. DWF do not produce the loan documents on every loan. This is done my a firm called GunnerCooke and they fill in all the details. Should there be a mistake of their making, their insurance would cover this. We wanted to ensure that the suitably qualified person completes the documents and these are checked before release by a partner from Gunner Cooke. They also give their undertaking to the Trustees that everything is in order. At all times, it is their PI cover that is at risk, and not AC's Thanks Andrew. This clearly addresses my concerns.
|
|
|
|
Post by andrewholgate on Aug 29, 2014 12:03:36 GMT
When/if we loose GoCardless, will extra time be allowed for shadow bid settlement (for accounts without a debit card) Yes, we will take this into account.
|
|
|
|
Post by andrewholgate on Aug 29, 2014 12:10:16 GMT
Andrew, I think that you've been doing SME lending for a while. If companies like those on Assetz are currently paying 12%-14% when interbank rates are <1%, what would they have been paying 6 or 7 years ago when bank repo rate was 5%-6%. Over the next few years as BoE rates rise how much do you see AC rates rising? At the moment you allow selling at a discount but not a premium. In the future after rates have risen and then fallen would you consider changing this? If I invest in a wind turbine one of the risks is that it won't be built. After it is commissioned I should be able to sell that loan at a premium. Any thoughts? This is something I was asked only yesterday and it a fascinating question that can only truly be answered when rates rise. LIBOR rates vary, but banks will lend at a margin above LIBOR so in the heady days of 2007 and 2008, margins of 1% above LIBOR or Base were being seen. This may seem crazy given that banks have a cost base of 5% but they are able to use leverage on their deposits and so can offer lower rates. In the current market, margins of 3% are the lowest but typically 4% and 5% above LIBOR is the norm. Remember we are in a strange world of extremely low rates, and artificially so. When I started lending in the late 90's, Base was 7%+ and margins we 5% and our current rates are not to dissimilar to those, which I must add are traditional long term average rates. As rates rise, we actually become more competitive against the banks for borrowers, but less competitive for lenders, if we keep rates the same. Assume Base goes to 5% instead of a 10% spread between a deposit account and lender rates on AC, you would get a 5% spread but still better than the banks. A more interesting question comes around do we move to variable rate lending to help lenders get a more consistent return when interest rates are in a period of flux. That remains to be seen but has been considered. Does that help?
|
|
