cb25
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Post by cb25 on Apr 28, 2020 15:55:50 GMT
The access account exposure should be covered by ring fencing, so balances are not affected. MLIA is not provision fund protected. I think GBBA1 has something like £2-3m, but just a guess. Best to assume no payout from the pf, because a) It has insufficient funds b) a liquidation of the estate could take several years to complete. Even when every single blade of grass, patch of mud and pile of bricks is sold, even when the borrower has been pursued to debtors prison for the pg, even as the ink has wholly faded on the now crinkly yellowed loan contract, Assetz will keep the loan open waiting for something to turn up. Rule no 1 - the provision fund never pays out (Based on scientific evidence and the number of defaulted loans). The only reason I to invest in all but MLA was the protection of the Provisional Fund. I thought I am trading lower interest and lack of control for the security provided by the PF. I also thought that by AC removing the choice from me where my investments in those A/c will go, AC is assuming the responsibilities for that choice. Does anyone has any information if AC has ever used the Provisional Fund for the purpose it has been set up for and advertised for? If AC hasn't, it will be a gross mis-selling, don't you think?
The A** G** one was loan #435
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gmitz
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Post by gmitz on Apr 28, 2020 16:11:22 GMT
The only reason I to invest in all but MLA was the protection of the Provisional Fund. I thought I am trading lower interest and lack of control for the security provided by the PF. I also thought that by AC removing the choice from me where my investments in those A/c will go, AC is assuming the responsibilities for that choice. Does anyone has any information if AC has ever used the Provisional Fund for the purpose it has been set up for and advertised for? If AC hasn't, it will be a gross mis-selling, don't you think?
The A** G** one was loan #435
What about the Wind Turbine loans, are they repaid to us by the PF?
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jlend
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Post by jlend on Apr 28, 2020 16:33:03 GMT
The access account exposure should be covered by ring fencing, so balances are not affected. MLIA is not provision fund protected. I think GBBA1 has something like £2-3m, but just a guess. Best to assume no payout from the pf, because a) It has insufficient funds b) a liquidation of the estate could take several years to complete. Even when every single blade of grass, patch of mud and pile of bricks is sold, even when the borrower has been pursued to debtors prison for the pg, even as the ink has wholly faded on the now crinkly yellowed loan contract, Assetz will keep the loan open waiting for something to turn up. Rule no 1 - the provision fund never pays out (Based on scientific evidence and the number of defaulted loans). The only reason I to invest in all but MLA was the protection of the Provisional Fund. I thought I am trading lower interest and lack of control for the security provided by the PF. I also thought that by AC removing the choice from me where my investments in those A/c will go, AC is assuming the responsibilities for that choice. Does anyone has any information if AC has ever used the Provisional Fund for the purpose it has been set up for and advertised for? If AC hasn't, it will be a gross mis-selling, don't you think? IMHO When asked, AC (Stuart Law) said this was how the PF worked in the investment accounts. There were no FAQs when the accounts were launched. There was other complementary information. If interest is due to be paid on a certain date and is missed then the Provision Fund (PF) is there to help pay that to help monthly interest on the account remain at 7%. If capital repayment is due and is late/ a default happens then interest continues to accrue on an interest-accrued loan and would continue to accrue (and would not be paid by the PF) until recovery had been completed and then the total accrued interest would be paid out including the default period. If the loan had monthly interest then this would be eligible for payment by the PF at that time of missed payment on a discretionary basis until full recovery had been completed. Due to interest accruing (or being paid in the case of monthly payment loans) and prior to any capital loss having been crystalised, no payout of any capital would occur from the PF until the recovery and any possible loss was crystalised, at which point if all capital and also accrued interest had been paid then no PF payment would be required. If there was a shortfall then the PF would be asked to pay. Given the Great British Business Account (GBBA) account is designed for income investment then this approach is fair as an extended period of default interest accruing for the investor is aligned with the core objective of the account, income. So the original assumption was that missed capital and interest payments were to be covered. This was from Stuart Law. There is much later revised AC wording and FAQs on the AC website which are very different. You would need to ask AC when and why they changed the working of the account and how many payments have been made in total under each definition. AC later denied that the accounts were ever designed the way they were originally described. The following is from Stuart Law. You would need to make your own judgment if this was misleading in terms of how you expected the accounts to work. I have my own opinion. Whilst a loan is in default then interest accrues and if recovered alongside and on top of the full capital being recovered then it would be paid at that time but the PF will not pay out interest during that recovery process as it was designed to handle late / missed interest on pre-defaulted loans as per the FAQs, and not to make payments of interest during a recovery process. Capital payments are prioritised during the recovery process and making monthly interest payments during recovery/ post default would be putting interest ahead of capital
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cb25
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Post by cb25 on Apr 28, 2020 16:49:44 GMT
The A** G** one was loan #435
What about the Wind Turbine loans, are they repaid to us by the PF? If you mean loans #437-#440, sorry, don't know as I luckily never had any money in those loans. If you're able to access the AC Private Board forum ( link), there's a thread in there about those loans which may answer your question.
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jlend
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Post by jlend on Apr 28, 2020 17:12:09 GMT
The A** G** one was loan #435
What about the Wind Turbine loans, are they repaid to us by the PF? Anyone in the Green Energy account invested in these loans will have been getting emails from AC about payments. If you haven't received the emails I suggest you contact AC.
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Post by Ton ⓉⓞⓃ on Apr 28, 2020 20:33:11 GMT
The only reason I to invest in all but MLA was the protection of the Provisional Fund. I thought I am trading lower interest and lack of control for the security provided by the PF. I also thought that by AC removing the choice from me where my investments in those A/c will go, AC is assuming the responsibilities for that choice. Does anyone has any information if AC has ever used the Provisional Fund for the purpose it has been set up for and advertised for? If AC hasn't, it will be a gross mis-selling, don't you think? IMHO When asked, AC (Stuart Law) said this was how the PF worked in the investment accounts. There were no FAQs when the accounts were launched. There was other complementary information. If interest is due to be paid on a certain date and is missed then the Provision Fund (PF) is there to help pay that to help monthly interest on the account remain at 7%. If capital repayment is due and is late/ a default happens then interest continues to accrue on an interest-accrued loan and would continue to accrue (and would not be paid by the PF) until recovery had been completed and then the total accrued interest would be paid out including the default period. If the loan had monthly interest then this would be eligible for payment by the PF at that time of missed payment on a discretionary basis until full recovery had been completed. Due to interest accruing (or being paid in the case of monthly payment loans) and prior to any capital loss having been crystalised, no payout of any capital would occur from the PF until the recovery and any possible loss was crystalised, at which point if all capital and also accrued interest had been paid then no PF payment would be required. If there was a shortfall then the PF would be asked to pay. Given the Great British Business Account (GBBA) account is designed for income investment then this approach is fair as an extended period of default interest accruing for the investor is aligned with the core objective of the account, income. So the original assumption was that missed capital and interest payments were to be covered. This was from Stuart Law. There is much later revised AC wording and FAQs on the AC website which are very different. You would need to ask AC when and why they changed the working of the account and how many payments have been made in total under each definition. AC later denied that the accounts were ever designed the way they were originally described. The following is from Stuart Law. You would need to make your own judgment if this was misleading in terms of how you expected the accounts to work. I have my own opinion. Whilst a loan is in default then interest accrues and if recovered alongside and on top of the full capital being recovered then it would be paid at that time but the PF will not pay out interest during that recovery process as it was designed to handle late / missed interest on pre-defaulted loans as per the FAQs, and not to make payments of interest during a recovery process. Capital payments are prioritised during the recovery process and making monthly interest payments during recovery/ post default would be putting interest ahead of capital
I see the Stuart quote above in bold has no date; it was made getting on five years ago and may well not reflect how these accounts work now. I wouldn't want anyone to get confused.
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Post by df on Apr 28, 2020 20:51:39 GMT
The A** G** one was loan #435
What about the Wind Turbine loans, are they repaid to us by the PF? In my understanding, not out of dedicated PF.
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jlend
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Post by jlend on Apr 29, 2020 5:31:42 GMT
IMHO When asked, AC (Stuart Law) said this was how the PF worked in the investment accounts. There were no FAQs when the accounts were launched. There was other complementary information. If interest is due to be paid on a certain date and is missed then the Provision Fund (PF) is there to help pay that to help monthly interest on the account remain at 7%. If capital repayment is due and is late/ a default happens then interest continues to accrue on an interest-accrued loan and would continue to accrue (and would not be paid by the PF) until recovery had been completed and then the total accrued interest would be paid out including the default period. If the loan had monthly interest then this would be eligible for payment by the PF at that time of missed payment on a discretionary basis until full recovery had been completed. Due to interest accruing (or being paid in the case of monthly payment loans) and prior to any capital loss having been crystalised, no payout of any capital would occur from the PF until the recovery and any possible loss was crystalised, at which point if all capital and also accrued interest had been paid then no PF payment would be required. If there was a shortfall then the PF would be asked to pay. Given the Great British Business Account (GBBA) account is designed for income investment then this approach is fair as an extended period of default interest accruing for the investor is aligned with the core objective of the account, income. So the original assumption was that missed capital and interest payments were to be covered. This was from Stuart Law. There is much later revised AC wording and FAQs on the AC website which are very different. You would need to ask AC when and why they changed the working of the account and how many payments have been made in total under each definition. AC later denied that the accounts were ever designed the way they were originally described. The following is from Stuart Law. You would need to make your own judgment if this was misleading in terms of how you expected the accounts to work. I have my own opinion. Whilst a loan is in default then interest accrues and if recovered alongside and on top of the full capital being recovered then it would be paid at that time but the PF will not pay out interest during that recovery process as it was designed to handle late / missed interest on pre-defaulted loans as per the FAQs, and not to make payments of interest during a recovery process. Capital payments are prioritised during the recovery process and making monthly interest payments during recovery/ post default would be putting interest ahead of capital
I see the Stuart quote above in bold has no date; it was made getting on five years ago and may well not reflect how these accounts work now. I wouldn't want anyone to get confused.
Correct it would depend on when you invested in the account and your expectations and what else you were sent in addition to this. Nonetheless this was the original expectation and communication so I don't personally think it is it confusing IMHO Others may disagree. Both statements you the word designed very clearly. The statements are hence not consistent as the PF design has never been changed on these accounts as far as I know. Are you aware when the design changes? Could you point me to that? I have asked AC if there have been any design changes, the dates of the changes and what the changes were. I will post the changes here.
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gmitz
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Post by gmitz on Apr 29, 2020 15:31:11 GMT
What about the Wind Turbine loans, are they repaid to us by the PF? In my understanding, not out of dedicated PF. Exactly, that's my understanding too. Even for those I** loans, the PF has not been touched. I don't think the problem is when the wording had been changed but that it had been changed after those particular products had been "sold" to the investors like me in 2016. The banks had to pay millions in compensations for such misrepresentations in the PPI scandal. I wonder if Mr Law has a background in the insurance industry.
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Post by oppsididitagain on Apr 29, 2020 16:39:01 GMT
What about the Wind Turbine loans, are they repaid to us by the PF? In my understanding, not out of dedicated PF. If my memory is correct AC did a funding raise about 18months and got about 3mil.?? I think most of this money went towards funding the hole left by the I** loans.. I could be completely wrong thou... Anyone else know.. ?
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Post by df on Apr 29, 2020 23:16:03 GMT
In my understanding, not out of dedicated PF. If my memory is correct AC did a funding raise about 18months and got about 3mil.?? I think most of this money went towards funding the hole left by the I** loans.. I could be completely wrong thou... Anyone else know.. ? From my memory (I might be wrong) the first repayment was from realisation of the remaining asset security, the second from raised capital.
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Post by angel19 on May 29, 2020 16:13:00 GMT
Update on site.
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sapphire
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Post by sapphire on May 29, 2020 16:23:19 GMT
I did not invest in this loan directly but have a (small) exposure to this loan via my QAA investment. I was able to view updates for this loan under the previous interface but the 'Updates' option is greyed out in the new UI. Is this by design or an unintended limitation of the new UI? Have AC explicitly stated that QAA investors will be unable to view updates for defaulted loans henceforth? I am still able to view updates on other non-defaulted QAA loans. Is there any workaround/alternative route to view this update?
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Post by davee39 on May 29, 2020 17:24:36 GMT
Dominic Cummins could not have come up with a better set of excuses. Now, how many times has a funding offer fallen through after a loan extension only for another offer to magically appear.
And we were told before the lockdown that the valuation was ready to be finalized.
So what we get is a short story full of plot holes.
Oh, and if the shareholder is funding this bankrupt pile of whitewash himself will there be anything left for the personal guarantee?
#callitin
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baldpate
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Post by baldpate on May 29, 2020 18:01:07 GMT
I did not invest in this loan directly but have a (small) exposure to this loan via my QAA investment. I was able to view updates for this loan under the previous interface but the 'Updates' option is greyed out in the new UI. Is this by design or an unintended limitation of the new UI? Have AC explicitly stated that QAA investors will be unable to view updates for defaulted loans henceforth? I am still able to view updates on other non-defaulted QAA loans. Is there any workaround/alternative route to view this update? I have some old, long-defaulted loans with only less than 1p in the access accounts only, and never invested via any other acount; I was unable to view the updates in these loans even under the old interface. I have other defaulted loans with less than £1 in AA accounts (and in no other accounts) and these I can view these ok - nothing greyed-out. So there is a cut-off at some low value (which I believe may be 1p), where AC refuse you access to details of defaulted loans.
Is you small investment via QAA now less than 1p? Is it possible you previously had just above this threshold, and QAA withdrawals have now taken it below?
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