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Post by mrclondon on Feb 14, 2019 12:11:26 GMT
We all know that there comes a point when there is no further avenues left to persue recovery, and what ever balance that remains has to be written off. However this Q&A (on loan 57) doesn't strike me as the most obvious solution:
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m2btj
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Post by m2btj on Feb 14, 2019 14:20:33 GMT
We all know that there comes a point when there is no further avenues left to persue recovery, and what ever balance that remains has to be written off. However this Q&A (on loan 57) doesn't strike me as the most obvious solution: AC are deliberately opaque on the subject of losses. I much prefer FC's net earnings summary with quantified defaults & recoveries clearly listed.
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Post by chris on Feb 14, 2019 15:08:16 GMT
We all know that there comes a point when there is no further avenues left to persue recovery, and what ever balance that remains has to be written off. However this Q&A (on loan 57) doesn't strike me as the most obvious solution: As far as I'm aware that's not a planned feature. I'll pick this up internally.
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bg
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Post by bg on Feb 14, 2019 15:22:04 GMT
We all know that there comes a point when there is no further avenues left to persue recovery, and what ever balance that remains has to be written off. However this Q&A (on loan 57) doesn't strike me as the most obvious solution: AC are deliberately opaque on the subject of losses. I much prefer FC's net earnings summary with quantified defaults & recoveries clearly listed. But they're not listed are they? It certainly doesn't list my defaults (all £64k worth) or the amounts recovered from each one (total of £8k). FC always made this incredibly difficult to monitor and unless there is some new feature I'm unaware of, it still is. It's one of the reasons I quit FC.
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Post by hammertime on Feb 14, 2019 15:24:02 GMT
Also you could be more up front about recoveries. You seem to be going the same way as F/C and i have noticed a trend now of investors pulling out of A/C.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 14, 2019 18:44:10 GMT
I'm confused by some of the comments on this thread. My AC tax statement lists all defaults eligible for loss relief under HMRC rules for MLA, GBBA & I assume GEA, and all subsequent recoveries.
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Post by mrclondon on Feb 21, 2019 11:30:39 GMT
Q&A on loan 57 still insisting it will be lenders writing off loans not Assetz. For the record (as I suspect its in danger of being deleted as opinion not a question) I've added another question myself: This is getting silly ....
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bg
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Post by bg on Feb 21, 2019 12:00:26 GMT
Q&A on loan 57 still insisting it will be lenders writing off loans not Assetz. For the record (as I suspect its in danger of being deleted as opinion not a question) I've added another question myself: This is getting silly .... I agree, I don't think as things are its doing anyone any favours. It would make the most sense if when AC wrote a loan off in the tax statements then the loan balance was written off. This does not mean recovery ceases - any future recoveries can be written back in (like FC and other platforms). The loan can still sit on the platform but with an additional field for amount written off (or similar). The user can then decide whether to hide or view all loans but the balances will all be accurate. I don't think it helps AC to have no statistics or track record for defaults. It is misleading and also unbelievable. There is nothing wrong with having defaults....in fact if as AC claim, there record is good then it should benefit them to show this record (ie if expected/average defaults is 4% pa and AC is 1% then great). Having no record of any defaults at all will start alarm bells ringing for many investors in my view.
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ilmoro
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Post by ilmoro on Feb 21, 2019 12:38:37 GMT
Q&A on loan 57 still insisting it will be lenders writing off loans not Assetz. For the record (as I suspect its in danger of being deleted as opinion not a question) I've added another question myself: This is getting silly .... I agree, I don't think as things are its doing anyone any favours. It would make the most sense if when AC wrote a loan off in the tax statements then the loan balance was written off. This does not mean recovery ceases - any future recoveries can be written back in (like FC and other platforms). The loan can still sit on the platform but with an additional field for amount written off (or similar). The user can then decide whether to hide or view all loans but the balances will all be accurate. I don't think it helps AC to have no statistics or track record for defaults. It is misleading and also unbelievable. There is nothing wrong with having defaults....in fact if as AC claim, there record is good then it should benefit them to show this record (ie if expected/average defaults is 4% pa and AC is 1% then great). Having no record of any defaults at all will start alarm bells ringing for many investors in my view. Need to reference the HMRC rules on losses I think. Currently AC have applied the definition of 'treatable' to loans in default and declared them on the tax certificate as irrecoverable as a result.
However, the definition of 'become' irrecoverable has additional criteria as 'the funds available and potentially available to the borrower must be considered'. That presumably means that the recovery has to be pursued to its final end (though whether that should include guarantors who are not technically the borrower is open to question). Once that end has been reached, then AC need to shut the loan down, removing it from any statement of lender balances, interest accrual etc, issue a definitive statement that the loan is considered to have become irrecoverable for tax purposes (for the benefit of those who havent claimed previously) and add it to a written off tab for the record.
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bg
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Post by bg on Feb 21, 2019 13:48:53 GMT
I agree, I don't think as things are its doing anyone any favours. It would make the most sense if when AC wrote a loan off in the tax statements then the loan balance was written off. This does not mean recovery ceases - any future recoveries can be written back in (like FC and other platforms). The loan can still sit on the platform but with an additional field for amount written off (or similar). The user can then decide whether to hide or view all loans but the balances will all be accurate. I don't think it helps AC to have no statistics or track record for defaults. It is misleading and also unbelievable. There is nothing wrong with having defaults....in fact if as AC claim, there record is good then it should benefit them to show this record (ie if expected/average defaults is 4% pa and AC is 1% then great). Having no record of any defaults at all will start alarm bells ringing for many investors in my view. Need to reference the HMRC rules on losses I think. Currently AC have applied the definition of 'treatable' to loans in default and declared them on the tax certificate as irrecoverable as a result.
However, the definition of 'become' irrecoverable has additional criteria as 'the funds available and potentially available to the borrower must be considered'. That presumably means that the recovery has to be pursued to its final end (though whether that should include guarantors who are not technically the borrower is open to question). Once that end has been reached, then AC need to shut the loan down, removing it from any statement of lender balances, interest accrual etc, issue a definitive statement that the loan is considered to have become irrecoverable for tax purposes (for the benefit of those who havent claimed previously) and add it to a written off tab for the record.
I don't know, this seems to be overly complicating things. FC default (and write off) their loans fairly promptly (in most cases) at an early stage of the recovery process. I don't think HMRC have taken any issue with them doing this and they are buy far the biggest P2P operator (and a public company). I have had quite a few loans ultimately recover in full with interest after a couple of years.
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Post by mrclondon on Feb 22, 2019 15:22:52 GMT
Q&A on loan 57 still insisting it will be lenders writing off loans not Assetz. For the record (as I suspect its in danger of being deleted as opinion not a question) I've added another question myself: This is getting silly .... No great surprise, my question has been deleted.
"Thank you for your post and thank you for your feedback. We can confirm the process of writing off debt is under review and is currently being worked on. Your feedback is appreciated and your points noted. As your post is feedback related we have deleted it on this occasion however, ..."
So the only answers left visible remain those that say lenders will be given the mechanism to write off loans if they want.
stuartassetzcapital - my question that has been deleted simply asked for a reason why Assetz is not going to write off residual capital and instead leave it up to lenders to decide. I do not understand why you think it is remotely appropriate for the writing off of capital to be delegated to lenders ... which is what you are stating on the loan 57 Q&A.
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Post by stuartassetzcapital on Feb 22, 2019 15:24:45 GMT
I believe that we are about to provide that mechanism for writing off loans - official answer will come shortly and probably at the time of a imminent capital payout from the PF.
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sl75
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Post by sl75 on Feb 22, 2019 16:53:00 GMT
#57 isn't even officially overdue yet, it still has 47 months of its 99 month term left to run according to the website!
Assetz has an unbeaten record in avoiding any loan ever becoming overdue!
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sl75
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Post by sl75 on Feb 22, 2019 17:02:50 GMT
Actually, I can think of a good reason why you might NOT want to have the value of a written off loan removed from your investment total... that total is the figure that AC currently use to determine eligibility of funds for their various cashback promotions.
If a loan value were to be written off correctly, and removed from the investment total, an equivalent amount of funds would become ineligible for the current cashback promotion(s).
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happy
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Post by happy on Feb 22, 2019 21:03:36 GMT
#57 isn't even officially overdue yet, it still has 47 months of its 99 month term left to run according to the website!
Assetz has an unbeaten record in avoiding any loan ever becoming overdue!
This extension of a genuine defaulted loan to an arbitrary period like 99 months is standard practice on the AC platform for loans that are the subject of on-going recovery operations of potentially unknown duration. It is done to stop the loan expiring on the system, interest rate going to zero and other undesirable effects aiui). It has nothing to do with any kicking of anything metal down any real or imaginary road. Ultimately these loans will have all productive recovery options exhausted and will be closed off and then formally written off. Once AC release their soon-to-be released features to cater for this write-off we should be able to see this in action. Edit. And if you really enjoy watching the art of professional can kicking then in my experience there are quite a few places way way better at it than AC and you can spend your time watching how your hard-earned and long-lost investments never really seem to get any closer to coming back to you.
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