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Post by EJi on Dec 13, 2020 21:16:41 GMT
Seems like they've held off making shield loan repayments in full until they brought in negative interest. I've got loans that are 11 12 13 months late and I've been told they will be repaid this month. Seems like they waited so they could take a large chuck back in shield adjustment. The shield should repay after 6 months.
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mogish
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Post by mogish on Dec 14, 2020 14:47:34 GMT
Unfortunately, in December, I have had 2 large capital repayments. Money transferred out = £1761 Shield contribution adjustment = £294 Just received £112 into wallet , checked my statements and it seems £34 has been clawed back. 30 % Seems damn steep. Called them to enquire what the % is sent to the shield, apparently its the 2% p/a however for the first 3 months it will be more. (Already know this) Whats the percentage then for the first 3 months? LW- No idea , depends on loan cohorts. So I could end up in theory losing capital? LW- no I dont think that will happen.!! In my mind this is nothing to do with Covid, this is a serious miscalculation of potential defaults , badly managed and smacks of inexperience of managing this type of business. I did question about Intriva part in the business , apparently they will only get involved when this situation is resolved . Probably once they have no more retail investors left.
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criston
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Post by criston on Dec 14, 2020 14:52:35 GMT
I believe the fund ********* is not related to what you have received into your wallet, as the ********* carries on, by reducing your capital, even if there is nothing in your wallet.
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mogish
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Post by mogish on Dec 14, 2020 16:02:26 GMT
I believe the fund ********* is not related to what you have received into your wallet, as the ********* carries on, by reducing your capital, even if there is nothing in your wallet. Would that be marked as N/A on statements?
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criston
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Post by criston on Dec 14, 2020 16:24:53 GMT
I believe the fund ********* is not related to what you have received into your wallet, as the ********* carries on, by reducing your capital, even if there is nothing in your wallet. Would that be marked as N/A on statements? Yes
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mogish
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Post by mogish on Dec 14, 2020 17:35:22 GMT
Thanks criston. That was a quicker response the LW. Seems the ********* is more severe than I thought.
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criston
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Post by criston on Dec 14, 2020 18:05:02 GMT
Thanks criston. That was a quicker response the LW. Seems the ********* is more severe than I thought. I note the word p******** I used, has been redacted as it is thought to be libellous.
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mogish
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Post by mogish on Dec 14, 2020 18:41:34 GMT
Just read a trustpilot review...with a response from LW relating to someone complaining about the removal of capital from their account.
In my tel con today , I was told the claw back is on interest recieved, ultimately reducing the overall return with no loss to capital.
The trustpilot LW response says :
However, if the Shield contribution adjustment exceeds over 10% of your account value, then I would invite you to contact our customer experience team who can look into this for you.
Surely 10% reduction in capital cant be right. In my case that would nearly double what I've earned in interest!
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Post by essexboy on Dec 14, 2020 22:20:44 GMT
As far as I’m concerned, they can call it anything they like. Interest, Capital, Reserve, Shield Contribution...or Trevor. If it turns out that realised portfolio Loss Given Default is LESS than this amount, and they do not return the difference to me, then that’s.....a word which will be redacted.
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keystone
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Post by keystone on Dec 14, 2020 22:24:03 GMT
Just read a trustpilot review...with a response from LW relating to someone complaining about the removal of capital from their account. In my tel con today , I was told the claw back is on interest recieved, ultimately reducing the overall return with no loss to capital. The trustpilot LW response says : However, if the Shield contribution adjustment exceeds over 10% of your account value, then I would invite you to contact our customer experience team who can look into this for you. Surely 10% reduction in capital cant be right. In my case that would nearly double what I've earned in interest! In yours and everyone else's world, once you have been paid the interest it's yours. In Lending Work's warped world, the advertised rate isn't really the true rate it's just a marketing tool to attract investors, before lending works takes it back a few years later. So whilst you may think you were earning 6%, 6%, 6.5%,6.5%, you were only earning 0.0001% and now its time for Lending Works to take back all the imaginary interest that they paid over the last 5 years. You may have thought it was yours but according to Lending Works it wasn't. You may have been issued statements in black and white showing the interest but in Lending works world, that doesn't matter, you may have paid tax on the amount declared but again in Lending works world, tough. Reading the going's on at Funding Secure today and previously Collateral, Lendy and (being generous) the incompetence at Moneything, it wouldn't surprise me if later on we discover there has been some serious ***** ******** at LW and they are using these disguised interest cuts as a way to cover ***** ******. No explanation, no transparency, they won't ever tell us what the negative interest rate is or how it's calculated. The FCA are allowing all this to happen, just like they did with Collateral, Lendy and Funding Secure. One wonders if they were behind the setting up of P2P as a method to allow fraudsters and crooks to channel their skills to rip off honest investors. Their silence in all these cases is deafening. One wonders how much ***** **** **** **** **** to look the other way.
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macq
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Post by macq on Dec 15, 2020 0:04:30 GMT
Admittedly pre Covid - but to think at the start of the year there were people telling me and others that we had been rash and were jumping ship after last years changes and - i don't know whether to  or  reading the posts again but i don't feel rash! |
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criston
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Post by criston on Dec 15, 2020 12:42:06 GMT
Thanks criston. That was a quicker response the LW. Seems the ********* is more severe than I thought. There could be something in what you suggested though, as well. I had a big repayment today & they seem to make the most of it by hitting your funds with a larger than usual reduction. Other than that, there seems to be a daily hit of various amounts.
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mogish
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Post by mogish on Dec 15, 2020 15:45:34 GMT
Still waiting on my official response from LW re the N/A listings on mh statements..... nothing is done at pace with them... except acquiring funds from investors
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criston
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Post by criston on Dec 16, 2020 9:32:47 GMT
Still waiting on my official response from LW re the N/A listings on mh statements..... nothing is done at pace with them... except acquiring funds from investors Having looked at my statement there is also a direct relationship between a Capital Repayment & a Shield Contribution. The Shield Contribution is in the B column, with the N/A in the E column. The same transaction number appears in the C column that relates the repayment & the contribution.
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Post by mw on Dec 16, 2020 11:44:47 GMT
Having looked at my statement there is also a direct relationship between a Capital Repayment & a Shield Contribution. The Shield Contribution is in the B column, with the N/A in the E column. The same transaction number appears in the C column that relates the repayment & the contribution. The way it seems to be working is this: For cohorts 2016 to 2018, the Shield Contribution is calculated as 50% of the "gross" capital repayment which was destined for the loan chunk. This is then capped by the level of the accumulated interest credited on the loan to date. ("Chunk Interest Received" in the loan book download). The transaction download shows you the "net" capital repayment, after deducting the Shield Contribution, together with a memorandum entry showing the Shield Contribution. So add those figures together to derive the "gross" capital repayment. The capital outstanding on the loan chunk is reduced by the "gross" capital repayment, and the accumulated interest on the loan chunk is reduced by that Shield Contribution. Note that it will never fall below zero, due to the cap. In effect we have a clawback of interest previously credited and paid on the loan chunk. "Negative interest" might describe it. The calculations are rounded down to whole pennies - recall that loan chunk amounts are recorded to five (or six ?) decimal places, but the Shield Adjustment is taken in pennies. For the 2019 cohort, as above, but 10% instead of 50%. For the 2020 cohort, no Shield Adjustment. The above is based on what I have seen from my own account transaction and loan listing downloads to today's date. Perhaps my notes will be of assistance to you. And, I hope that the additional Shield Contribution will, indeed, cover any potential shortfall in capital, and that, if it proves to have been too much, that any surplus is credited back to me.
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or 
reading the posts again but i don't feel rash!