johni
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Post by johni on Nov 24, 2020 23:05:33 GMT
How many customers are actually aware the balance is decreasing on a daily basis? Are they aware it is 20% plus of repayments? I think a large number will not look at their accounts only monthly so may not realise how much has been removed/taken!
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Post by jamiee on Nov 25, 2020 3:01:51 GMT
'We fully acknowledge that this has been a very difficult year for the peer-to-peer lending industry and for Lending Works, with the impact of Covid-19 being felt by borrowers and by investors.'
Matthew, perhaps you could explain why Mr Harding described the situation as 'a good crisis' for LW?
You could, perhaps, also enlighten us as to what the specific negative interest rates are.
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criston
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Post by criston on Nov 25, 2020 8:10:45 GMT
Account total reduced. 23/11/20 0.2%. 24/11/20 0.02% 25/11/20 0.01%
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benaj
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Post by benaj on Nov 25, 2020 8:20:19 GMT
criston, no deduction between 1st - 22nd Nov
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criston
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Post by criston on Nov 25, 2020 8:42:17 GMT
criston , no deduction between 1st - 22nd Nov Yes, but was not tracking properly.
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r00lish67
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Post by r00lish67 on Nov 25, 2020 10:54:35 GMT
I'm not sure why you think that's well explained. They've given us no idea of the value of the negative interest rates, and no idea of how it affects different cohorts. Telling us that we are not expected to lose capital doesn't narrow it down much. This could be up to a 30% reduction on a 5 year loan at 6%. They must know what reductions they're making since they are already being applied. Fair point, well made. Sorry, was just responding to what seemed a general feeling of consternation that it was rather happening, as opposed to the lack of detail. Entirely sympathise with anger/upset with regards to that.
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Post by EJi on Nov 25, 2020 11:24:06 GMT
Good to see you post again Matthew. Please don't disappear again for 6
months. You were always around when things were good. Could you respond to
some of the posts after your last one (especially the one straight after). The problem with emailing customer service is, they don't fully answer what has been asked and it takes about 2-3 days to respond. If, like you say most people are happy and not complaining, they shouldn't have many emails to reply to. What are they doing all day? I'm still waiting for a reply from Friday.
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jlend
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Post by jlend on Nov 25, 2020 14:12:28 GMT
Sorry if I have missed it.
Has there been any information about the tax implications related to the negative interest rates?
How will Lending works recognise the reduced capital in the annual tax statements for lenders?
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benaj
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Post by benaj on Nov 25, 2020 15:48:06 GMT
I am pretty sure someone @ LW are taking matters seriously as per FCA rules. (8 weeks response)
However, it seems that there is no urgency to explain nor provide detailed information to investors who are in doubt with the current “arrangement”.
Regardless what the outcomes, I am afraid the prospect to reinvest in the future with LW is 0.
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Post by tommycatz on Nov 25, 2020 19:27:55 GMT
It's p1ss poor that the actual negative interest rate has not been declared. Surely, the deductions are displayed on the monthly statements?
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Post by Ace on Nov 25, 2020 22:24:53 GMT
Similar to my experience. I wonder if these reductions are being applied across the board or if it is dependent upon the cohort you are invested in. If can't be across the board as my reductions are different to those quoted on here. My data points are: Total account value on 8/11/2010 = £895.95. Total account value on 24/11/2010 = £895.41. So, a reduction of 0.06% over 16 days for me. Me and my big mouth 🙄 My negative interest increased to 1% 0.7% today. EDIT: Oops, originally miscalculated.
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benaj
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Post by benaj on Nov 25, 2020 23:45:29 GMT
With 36 days to go before New Year, the interest earned (2020) in my partner's account is +VE, as today, earning @ 0.71% this year. Absolutely no idea what this number would be by the end of year.
It was earning @ 1.16% at the end of October.
XIRR (since 2018): 5.41%
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Post by 673639neil on Nov 26, 2020 0:54:13 GMT
Since 11/11/20 when this negative interest cane in i have lost well over £500 from my total.
And this isn't reflected in the loan book anywhere.
It's just like the money has disappeared?
I have contacted the FCA today for clarification on this matter and it would appear that lendingworks are not following correct procedure and breaking rules 6 and 7 of the high level principles that the FCA require them to follow.
We all need to report lendingworks to the FCA to get them to investigate the practice of lendingworks.co.uk
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criston
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Post by criston on Nov 26, 2020 7:34:46 GMT
Account total reduced.
23/11/20 0.20%.
24/11/20 0.02%
25/11/20 0.01%
26/11/20 0.13%
Reduction of 0.36% in 4 days is equivalent to 30% per annum, although too shorter time frame to be anywhere near accurate, especially without weekend inclusion.
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Post by EJi on Nov 26, 2020 8:22:48 GMT
I noticed today my total interest when clicking view account has gone up by £2.34 since yesterday even though they took another £1 overnight. I've been watching this figure every day wondering why it doesn't go down when they take my interest back.
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