jonno
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Post by jonno on Dec 2, 2014 9:56:53 GMT
What is happening with the interest on PBL 11/12/13? I've received no interest so far. Are we accumulating interest that will be paid after drawdown or is the money sitting there idle? The interest is accruing and will be paid along with cashback when the loans go live, or are withdrawn.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Dec 2, 2014 10:05:52 GMT
What is happening with the interest on PBL 11/12/13? I've received no interest so far. Are we accumulating interest that will be paid after drawdown or is the money sitting there idle? We are accumulating the interest that will be paid after drawdown - that's how all SS loans work that aren't drawn down immediately. In the past it has worked that any cashback due and upfront interest is paid at the time the loan draws down. Accumulated monthly interest has also been paid at that point for the months that have ended since the investments were made, and back-dated in the statement, which makes it look as though you had the money in the account at that time, so it makes you think you're going loopy and misremembering things. It has the advantage that it makes the statement look as it should have done really, but it doesn't reflect what really actually happened. Personally, I'd prefer the outstanding interest got put into the statement on the day it was paid with an entry description that makes it clear what it's for, but I'm guessing it has something to do with how the interest paying software is set up, and probably isn't a quick thing to fix, and hence the confusing way it is done.
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Post by gaspilot on Dec 2, 2014 10:12:46 GMT
What is happening with the interest on PBL 11/12/13? I've received no interest so far. Are we accumulating interest that will be paid after drawdown or is the money sitting there idle? We are accumulating the interest that will be paid after drawdown - that's how all SS loans work that aren't drawn down immediately. In the past it has worked that any cashback due and upfront interest is paid at the time the loan draws down. Accumulated monthly interest has also been paid at that point for the months that have ended since the investments were made, and back-dated in the statement, which makes it look as though you had the money in the account at that time, so it makes you think you're going loopy and misremembering things. It has the advantage that it makes the statement look as it should have done really, but it doesn't reflect what really actually happened. Personally, I'd prefer the outstanding interest got put into the statement on the day it was paid with an entry description that makes it clear what it's for, but I'm guessing it has something to do with how the interest paying software is set up, and probably isn't a quick thing to fix, and hence the confusing way it is done. That's an awkward way of doing things. It could make things quite tricky around the time of preparing tax returns etc. The amounts concerned could straddle two tax years if the delays in drawdown were significantly long.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Dec 2, 2014 10:21:36 GMT
We are accumulating the interest that will be paid after drawdown - that's how all SS loans work that aren't drawn down immediately. In the past it has worked that any cashback due and upfront interest is paid at the time the loan draws down. Accumulated monthly interest has also been paid at that point for the months that have ended since the investments were made, and back-dated in the statement, which makes it look as though you had the money in the account at that time, so it makes you think you're going loopy and misremembering things. It has the advantage that it makes the statement look as it should have done really, but it doesn't reflect what really actually happened. Personally, I'd prefer the outstanding interest got put into the statement on the day it was paid with an entry description that makes it clear what it's for, but I'm guessing it has something to do with how the interest paying software is set up, and probably isn't a quick thing to fix, and hence the confusing way it is done. That's an awkward way of doing things. It could make things quite tricky around the time of preparing tax returns etc. The amounts concerned could straddle two tax years if the delays in drawdown were significantly long. Yes, it is rather awkward. The problem would arise if somebody filed their tax return in between the end of the previous tax year and when savingstream applied the retrospective adjustments to to the account. So for example, an investment made in February and adjustments made in May, with the investor having filed a tax return in April. It hasn't arisen yet, but it could do. Perhaps they could start working on a way to make the backdated interest payments appear in the statement on the day they are actually paid while there is still time to avert such an occurrence?
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Post by gaspilot on Dec 2, 2014 10:43:34 GMT
That's an awkward way of doing things. It could make things quite tricky around the time of preparing tax returns etc. The amounts concerned could straddle two tax years if the delays in drawdown were significantly long. Yes, it is rather awkward. The problem would arise if somebody filed their tax return in between the end of the previous tax year and when savingstream applied the retrospective adjustments to to the account. So for example, an investment made in February and adjustments made in May, with the investor having filed a tax return in April. It hasn't arisen yet, but it could do. Perhaps they could start working on a way to make the backdated interest payments appear in the statement on the day they are actually paid while there is still time to avert such an occurrence? is there any way we can implement this change?
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oldgrumpy
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Post by oldgrumpy on Dec 2, 2014 11:24:12 GMT
When SS report to HMRC what interest we have received, it MUST be the same figure that we have declared from our statements (or future tax statements SS provide for us), or we could become liable for very exhaustive and time consuming investigation from HMRC, if they chose to do so. Please see to it SS.
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mikes1531
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Post by mikes1531 on Dec 3, 2014 18:27:28 GMT
That's an awkward way of doing things. It could make things quite tricky around the time of preparing tax returns etc. The amounts concerned could straddle two tax years if the delays in drawdown were significantly long. Yes, it is rather awkward. The problem would arise if somebody filed their tax return in between the end of the previous tax year and when savingstream applied the retrospective adjustments to to the account. So for example, an investment made in February and adjustments made in May, with the investor having filed a tax return in April. It hasn't arisen yet, but it could do. Perhaps they could start working on a way to make the backdated interest payments appear in the statement on the day they are actually paid while there is still time to avert such an occurrence? In ramblin rose's example, what would savingstream use to calculate the numbers to be supplied to HMRC? If they produce the figures in April before the new loan goes live ISTM that they can't possibly try to include the interest accrued to 5/Apr on the new loan. And when the loan does go live in May, if they backdate some of the interest to before 6/Apr it would mean the numbers previously supplied would be inconsistent with the statements. Would they then have to re-issue the tax-year info to HMRC and lenders? That doesn't sound like a good move at all. ISTM that the backdating can only cause accounting problems and needs to be stopped ASAP. The mention of supplying numbers to HMRC caused me to go looking for that data for the 2013-14 tax year -- and I came up empty-handed. I found the forum thread where SS said on 14/Oct that they would be making this data available, and I've resurrected it in the hope that it will produce a result soon. I haven't missed an announcement regarding this, have I?
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Bagman
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Post by Bagman on Dec 3, 2014 18:54:46 GMT
I don't think you have missed it.
not seen mine either
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star dust
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Post by star dust on Jan 27, 2015 16:41:20 GMT
And finally they've been marked up as 'drawndown', on the main loan page. Hopefully accrued interest due will be paid soon. Congratulations for finally getting there savingstream. |
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star dust
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Post by star dust on Jan 27, 2015 16:50:41 GMT
Interest due coming through now. My payments, which were all monthly interest have been backdated to 31 December, so nearly missed them!
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Post by savingstream on Jan 27, 2015 17:13:43 GMT
We are very pleased to announce that PBL011, PBL012 and PBL013 have finally been drawndown by the borrower and all security is now in place.
With regards investor payments, here is a summary of what has and will happen.
All cashback was paid to qualifying investors last week and the cashback offer was then removed from the investment offer.
For live loan parts, all interest has been paid up to 31/12/2014 providing your loan part purchase was before this date. January payments will be made as standard to include these loans.
For sold loan parts, all interest has been paid up to 31/12/2014 providing your loan part purchase was before this date. If your loan part sold date was since 31/12/2014 you will receive your January interest at the end of January as per usual.
For investors who opted to receive upfront interest, we have had complications arising becuase of the 4 month pre-drawdown time. It would be unfair to tie an investor into 10 months when they only agreed to 6 months inititally. As such we are making the decision to switch all upfront investments to monthly investments and giving all investors access to the secondary market if required.
Thank you for your patience throughout this ardous and lengthy completion.
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star dust
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Post by star dust on Jan 27, 2015 19:02:52 GMT
savingstream, the loans are still saying "The loan has not gone live yet" under their Description & Documents tabs, and indeed the text under PBL13 seems to have been chopped in half!  .
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Post by savingstream on Jan 27, 2015 19:18:51 GMT
This should now be fixed. Thanks for notifying.
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mikes1531
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Post by mikes1531 on Jan 27, 2015 20:07:59 GMT
We are very pleased to announce that PBL011, PBL012 and PBL013 have finally been drawndown by the borrower and all security is now in place. <snip> For investors who opted to receive upfront interest, we have had complications arising becuase of the 4 month pre-drawdown time. It would be unfair to tie an investor into 10 months when they only agreed to 6 months inititally. As such we are making the decision to switch all upfront investments to monthly investments and giving all investors access to the secondary market if required. : Congrstulations! And thank you for the update. With respect to the question of upfront interest... I can understand the logic for switching those who opted for upfront interest -- possibly as much as four months ago -- to monthly interest with secondary market access, and I fully support that decision by SS. But what about people who invest in these loans from here forward? Inasmuch as SS have retained the interest due for the next six months, would it not be possible to reinstate the upfront interest option for new purchases in the secondary market?
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mikes1531
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Post by mikes1531 on Jan 27, 2015 20:14:55 GMT
This should now be fixed. Thanks for notifying. : On the subject of notifying... I see that someone offered up £100 of PBL012 on the secondary market, but it looks like two people purchased that part simultaneously, as the loan now is showing to be £100 overinvested. One of those purchases needs to be unwound before the secondary market in that loan's parts will work correctly again.
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