keystone
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Post by keystone on Nov 13, 2020 10:40:20 GMT
With the Negative interest rates, is the start date, the rate or how its calculated published anywhere? I thought it wasn't going to start until the new year.
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Post by overthehill on Nov 13, 2020 10:56:10 GMT
So my balance has silently reduced by £1.81 since the 31oct. There is nothing in transactions, I will check the statement at the end of the month. The balance is approx 4k and I'm assuming the interest payments are no longer enough to cover the previously paid interest that they are stealing back. Pretty much sums it up...
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picnicman
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Post by picnicman on Nov 13, 2020 13:54:56 GMT
So my balance has silently reduced by £1.81 since the 31oct. There is nothing in transactions, I will check the statement at the end of the month. The balance is approx 4k and I'm assuming the interest payments are no longer enough to cover the previously paid interest that they are stealing back. Pretty much sums it up...
- £1.79 for me on £2k (reduced today) no transaction info/no notification/no methodology or values etc etc such as to understand it - as you say, pretty much sums up this platform  they talk of starting new lending again by the end of the year, once their new investor deal concludes. They cannot mean retail lenders surely, as unless they start paying interest, who is going to invest and even if they did would I stay/add funds?? Please correct me if I am completely misunderstanding here. Cheers P
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benaj
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Post by benaj on Nov 13, 2020 14:02:38 GMT
Another update from my partner's "account" (2018, 2019 Cohorts)
Balance: 31.10.20: 1511.6
Withdrawal (November): 30.33
Today Balance (13th Nov): 1481.22
-ve interest: 5p
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Post by jonrgrant on Nov 13, 2020 14:48:29 GMT
Today they have taken £12 of my money from a 11.5k investment!
This must have been the master plan way before COVID-19 as indicated when they stopped wanting to show projected monthly / yearly returns, stating it was complicated calculation and investors were not wanting the data. They can Never be trusted or believed again.
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Post by EJi on Nov 13, 2020 15:23:37 GMT
Quote from the LW email update. So if the 2% service fee (which was taken from our interest) is being stopped and diverted to the shield, why was there any need to introduce negative interest.
Quote from the LW email update.
So they're saying that when the new buyer's investment is completed (by the end of the month), they intend to lift all features of the normalisation period. The negative interest is part of the normalisation isn't it?
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Post by mpn on Nov 13, 2020 23:39:22 GMT
The balance on my account dropped by £10.52 a few days ago. Seen a smaller drop on my partners account as well.
Nothing showing on the transaction history for either yet.
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keystone
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Post by keystone on Nov 13, 2020 23:40:17 GMT
Quote from the LW email update.
So they're saying that when the new buyer's investment is completed (by the end of the month), they intend to lift all features of the normalisation period. The negative interest is part of the normalisation isn't it?
No I don't think it is. Expect 3 months of severe thievery and then years of robbery. According to LW "To account for the impact of COVID-19, the period of negative interest rates will be phased, being more severe for 3 months, then easing after that". www.lendingworks.co.uk/blog/peer-to-peer/credit-risk-performance-update-october-2020
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Post by essexboy on Nov 14, 2020 20:59:40 GMT
Not been keeping up in detail but isn’t what LW doing unlawful? Charging us to stay ‘invested’ whilst at the same time giving us no way to leave? If they can do this, what’s to stop them just setting all investor acc balances to zero with a 100pct ‘negative rate’?
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Post by mpn on Nov 16, 2020 14:38:32 GMT
Just spotted another reduction in balance in my account so just over £15 gone in a week and £7 out of my partner's much smaller account since last checked as well.
Nothing shows in the transaction history so there's no way to check these deductions, assuming they ever publish details of the negative rates!
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Post by overthehill on Nov 16, 2020 17:56:35 GMT
I believe negative interest rates are due to the 28nov2019 update but are worsened by the subsequent covid-19 related interest changes on 6apr2020. As an example, the 28nov2019 update means that instead of earning 6.5% pa for the period you've been invested with LW , that figure is being changed to 5.4% and applied retrospectively. But those figures are just averages and due to all the variables some people could be 3 or 4 times worse off than others meaning more interest needs to be recouped. That is my superficial understanding.
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28nov2019 To confirm, from 1/1/2020, the rate for loans on the Growth market will be 5.4% and on the Flexible it will be 3.8% 6apr2020 During the Normalisation Period, Lending Works will receive a pro-rated servicing margin of 2.0% p.a. of the outstanding loan portfolio to cover the overheads associated with servicing the portfolio. On that basis, for our April 2020 update to our Lender Rate Adjustment mechanism, we will temporarily divert all interest repayments to the Lending Works Shield for all active cohorts (i.e. 2014 to 2020).
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keystone
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Post by keystone on Nov 17, 2020 20:48:02 GMT
"Lending Works told 4thWay that it's just had 30 enquiries about the changes, including 20 complaints, versus “hundreds” who have said Lending Works is better now than it was before. Lending Works claims that the majority like the changes it's made".
So there you have it, the majority like being paid negative interest!
Besides the resident stooge where are the rest of the "hundreds" hiding and what drugs are they on, or could LW be telling porkies? Hmm, I know which one my money is on.
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Post by EJi on Nov 18, 2020 8:10:34 GMT
The hundreds who have said Lending Works is better now than it was before must be borrowers.
From my account it looks like LW they are taking about half the amount of whatever capital is returned to me. My account goes down by as much as apears in the wallet (total account amount, not amount on loan).
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Post by gilder on Nov 18, 2020 9:10:11 GMT
Because of this undefined robbery. I have checked my account this morning, I received £16 into my account to withdraw but the overall account balance dropped by £4. So working on this snapshot I am losing 20% of the paid in capital today.
I have also checked the the October month end balance to today's balance and this is showing a £83 capital loss...
I have sent an secure message highlighting this but more importantly the lack of defined criteria for myself to check these figures against.
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macq
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Post by macq on Nov 18, 2020 9:50:59 GMT
"Lending Works told 4thWay that it's just had 30 enquiries about the changes, including 20 complaints, versus “hundreds” who have said Lending Works is better now than it was before. Lending Works claims that the majority like the changes it's made".So there you have it, the majority like being paid negative interest! Besides the resident stooge where are the rest of the "hundreds" hiding and what drugs are they on, or could LW be telling porkies? Hmm, I know which one my money is on. from a very quick glance - 4thWay seemed to have last updated their "review" of LW in mid March and clicking the general Covid update link that was dated 23rd of April so not sure how up to date they can be (they also seemed to have removed LW from the table of lenders on the home page?) I am willing to believe that some people have not got in touch to complain as many are probably passive investors who just flick through the emails unlike the people on here (similar to the people who are told for the first time they can change their rate on RS) but that inertia also seems to make it "surprising" that many got in touch in their hundreds to say what a good job. At the end of last year and the start of this year before Covid hit there were people taking their money out due to the changes in terms myself included but their were still people posting in positive terms about the product as was their right. I have not seen that recently but it would be interesting if the people who were positive in March and thought/posted others to be jumping the gun still think the same after these latest T&C changes as that would be a better review then 4thway (There was even a thread saying people were overreacting in leaving in Feb or March)
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they talk of starting new lending again by the end of the year, once their new investor deal concludes. They cannot mean retail lenders surely, as unless they start paying interest, who is going to invest and even if they did would I stay/add funds?? Please correct me if I am completely misunderstanding here. Cheers P