sl75
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Post by sl75 on Nov 13, 2019 15:17:19 GMT
No advance warning and not even a notification. I just happened to look at my account to find recent funds removed from GBBA2. Not impressed so looking for alternatives for UK funds. There was an email notification this morning... perhaps you didn't receive it for some reason?
I assume that, like other "closed to new investment" accounts, you can still set which account repayments are withdrawn to.
I would have thought it better to handle it by giving notification the accounts would be closing in 'N' days, and inviting investors to select which account they wanted the funds returned to, rather than assuming they'll want it in the cash account.
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Nov 13, 2019 15:41:23 GMT
sl75 definitely no email today for either account with different emails and not in spam, just one of the usual opinion requests for a loan I have 10P in which is why I looked.
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jlend
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Post by jlend on Nov 13, 2019 15:50:05 GMT
Also didn't get an email as far as I can see. Not in GBBA2 and only investment left in PSA is in one suspended loan.
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n
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Yet another Nick
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Post by n on Nov 13, 2019 16:15:12 GMT
I feel lucky.  I had the email. Thing is, I've never invested anything in GBBA2 and only briefly dipped a toe in #GBBA1 years ago until I realised how it worked. |
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jlend
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Post by jlend on Nov 13, 2019 16:43:06 GMT
I feel lucky. I had the email. Thing is, I've never invested anything in GBBA2 and only briefly dipped a toe in #GBBA1 years ago until I realised how it worked. The irony is that I thought I understand how the GBBA worked from this post from stuartassetzcapital in September 2015 which IMHO is quite different to the FAQs that were added years later following the first delayed interest payments. " 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. "
p2pindependentforum.com/post/55834
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Post by Ton ⓉⓞⓃ on Nov 13, 2019 20:41:58 GMT
I feel lucky. I had the email. Thing is, I've never invested anything in GBBA2 and only briefly dipped a toe in #GBBA1 years ago until I realised how it worked. The irony is that I thought I understand how the GBBA worked from this post from stuartassetzcapital in September 2015 which IMHO is quite different to the FAQs that were added years later following the first delayed interest payments. " 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. "
They have developers working on projects all the time, so it's highly likely that over four years the a/c's M.O. would be somewhat different, in fact I'd be annoyed if it wasn't different.
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jlend
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Post by jlend on Nov 13, 2019 20:51:40 GMT
The irony is that I thought I understand how the GBBA worked from this post from stuartassetzcapital in September 2015 which IMHO is quite different to the FAQs that were added years later following the first delayed interest payments. " 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. "
They have developers working on projects all the time, so it's highly likely that over four years the a/c's M.O. would be somewhat different, in fact I'd be annoyed if it wasn't different. That is a fair comment. The only thing I would add is that IMHO the new MO wording on the website and the new FAQs were added after the GBBA and GEIA were closed to new investment and the old wording on the PF was removed. Before then, the current FAQs didn't exist. I felt misled, but I appreciate not everyone feels the same way.
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Post by df on Nov 14, 2019 0:56:44 GMT
I have a sneaking suspicion that the opposite will be true, and its MLIA which will either be next on the list, or at least not developed. Their various GEAI/GBBA etc etc. accounts were themselves meant to be a simplifaction c.g. the MLIA. My guess - and I may be completely wrong - is that the direction of travel is more along the lines of the instance access/30 day/90 day accounts. But this is P2P and mistakes big and small are par for the course. AC strikes me as one of the more sensible platforms so I’d hope they have the sense to avoid such mistakes. Whilst the MLIA might not be the biggest component of the AC retail business it is a useful complement to the auto X-day accounts. The MLIA attracts lenders who wouldn’t otherwise be on the platform and serves as a useful smoother of liquidity volatility. In times of insufficient liquidity for NEW loans it allows an avenue for underwriting and in times of lenders liquidating it allows manual lenders to lower price to create demand. has confirmed that there is no plan to do this, but I question whether MLA will sustain for very long. In the past year or so my MLA balance has reduced in favour of 90-day as an average rate has dropped. Most loans these days are 6% - I find 5.75% with PF and the convenience of easy management a more attractive offer.
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gmitz
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Post by gmitz on Nov 14, 2019 10:07:19 GMT
The closure of those accounts is bad, very bad. Now, no one can buy me out and my thousands of pounds are locked there for 4-5 years or even more if some loans go bad. If AC remove the only option for investors who want to release their investments from those accounts, AC should do the right thing and move the funds of those investors in the 30 and 90 days accounts.
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bg
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Post by bg on Nov 14, 2019 10:38:29 GMT
The closure of those accounts is bad, very bad. Now, no one can buy me out and my thousands of pounds are locked there for 4-5 years or even more if some loans go bad. If AC remove the only option for investors who want to release their investments from those accounts, AC should do the right thing and move the funds of those investors in the 30 and 90 days accounts. Why can't people buy you out? You can still sell the loans you hold exactly as you could before.
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jlend
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Post by jlend on Nov 14, 2019 12:10:12 GMT
The closure of those accounts is bad, very bad. Now, no one can buy me out and my thousands of pounds are locked there for 4-5 years or even more if some loans go bad. If AC remove the only option for investors who want to release their investments from those accounts, AC should do the right thing and move the funds of those investors in the 30 and 90 days accounts. You could try asking AC if they will let you apply a discount to your unsuspended loans in your accounts. They offered this to me when I put in an official complaint some time ago now unrelated to this. In the past AC have said they will treat all lenders equally with complaints so may be worth asking. Of course this still only works if you are happy to discount the loans and there are willing buyers at the discounted rate.
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jlend
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Post by jlend on Nov 14, 2019 12:47:07 GMT
The closure of those accounts is bad, very bad. Now, no one can buy me out and my thousands of pounds are locked there for 4-5 years or even more if some loans go bad. If AC remove the only option for investors who want to release their investments from those accounts, AC should do the right thing and move the funds of those investors in the 30 and 90 days accounts. Why can't people buy you out? You can still sell the loans you hold exactly as you could before. I am not in the GBBA2 and only have one small suspended loan in the PSA so don't know the loans in question that the lender is trying to sell out of. It may be they are unpopular loans with Manual investors and the access accounts are not buying much of them for some reason. Then the main way to shift them may be to other GBBA2 and PSA investors that were still reinvesting. With no reinvestment there may be a slow down liquidating difficult to shift loans in these accounts. I think it is good these accounts are comming to an end and hope everyone comes out positive at close to the published target rate, even if it takes some time.
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jlend
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Post by jlend on Nov 14, 2019 12:52:27 GMT
stuartassetzcapital has confirmed that there is no plan to do this, but I question whether MLA will sustain for very long. In the past year or so my MLA balance has reduced in favour of 90-day as an average rate has dropped. Most loans these days are 6% - I find 5.75% with PF and the convenience of easy management a more attractive offer. I share your concern to some extent of how can the following be sustained: - MLA - Majority of loans at 6% - 90DAA at 5.75% - PF cover. Where I’d differ is that if we accept your premise that the four are not in a sustainable equilibrium then that the first one to give would be the MLA. I’d put majority of loans at 6% and 90DAA at 5.75% as perhaps more likely to yield. And particularly so as they can flex rather than be all-or-nothing. has mentioned on several occasions about shifting some of the PF cash balance from the QAA/30DAA to the 90DAA. I haven't heard if this has happened yet or is still planned. AC extracted some excess from the PFs recently to buy some of the wind turbine loans from investors so I dont know how feasible it still is to transfer money to the 90DAA.
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bg
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Post by bg on Nov 14, 2019 13:15:42 GMT
Why can't people buy you out? You can still sell the loans you hold exactly as you could before. I am not in the GBBA2 and only have one small suspended loan in the PSA so don't know the loans in question that the lender is trying to sell out of. It may be they are unpopular loans with Manual investors and the access accounts are not buying much of them for some reason. Then the main way to shift them may be to other GBBA2 and PSA investors that were still reinvesting. With no reinvestment there may be a slow down liquidating difficult to shift loans in these accounts. I think it is good these accounts are comming to an end and hope everyone comes out positive at close to the published target rate, even if it takes some time. Well he has said that "Now, no one can buy me out and my thousands of pounds are locked there for 4-5 years". That just isn't true as anyone could buy the loan through the MLIA or any of the access accounts could buy them. It may well be (although I doubt it makes much difference) that the loans could sell slower as a consequence but I don't think this claim could be made within a day of the change.
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jlend
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Post by jlend on Nov 14, 2019 14:08:22 GMT
I am not in the GBBA2 and only have one small suspended loan in the PSA so don't know the loans in question that the lender is trying to sell out of. It may be they are unpopular loans with Manual investors and the access accounts are not buying much of them for some reason. Then the main way to shift them may be to other GBBA2 and PSA investors that were still reinvesting. With no reinvestment there may be a slow down liquidating difficult to shift loans in these accounts. I think it is good these accounts are comming to an end and hope everyone comes out positive at close to the published target rate, even if it takes some time. Well he has said that "Now, no one can buy me out and my thousands of pounds are locked there for 4-5 years". That just isn't true as anyone could buy the loan through the MLIA or any of the access accounts could buy them. It may well be (although I doubt it makes much difference) that the loans could sell slower as a consequence but I don't think this claim could be made within a day of the change. Agree. It is too early to tell what difference it will make. There may be some loans in the GBBA2 and PSA that will only sell at a discount. It is here the MLIA has an advantage. But that has always been the case to be honest. And I don't know what loans are in these accounts. Hopefully all the GBBA1, GBBA2, PSA and GEIA investors will come out well in the end. They provided a lot of liquidity in the early years when AC were growing.
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I had the email. Thing is, I've never invested anything in GBBA2 and only briefly dipped a toe in #GBBA1 years ago until I realised how it worked.
