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Post by supernumerary on Dec 16, 2020 12:16:43 GMT
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.............
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.
A BIG thank you for explaining what is actually occurring... 
...it is quite TELLING, that it has taken a lender, to reveal the truth and the 'machinations' of the new 'brand'... 
…I don’t know, but I have mentally rebranded the company, but I am unsure with how to do the ‘rebrand’…  Cloud Cuckoo Land-ing WorksCloud Cuckoo Lending WorksCloud Cuckoo Land of Lending Works…and so forth…
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mw
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Post by mw on Dec 16, 2020 12:27:14 GMT
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.............
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.
A BIG thank you for explaining what is actually occurring...
You're very welcome. Please note that the Shield Contribution is being capped at the level of interest already credited. That is quite important to understanding how the numbers may work out, in the current scheme anyway.
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benaj
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Post by benaj on Dec 16, 2020 12:27:26 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. See how it works. The shield cash has been low for quite a long period of time. I didn’t fully understand from Lending works comms when they offered 0 fee to sell loans.
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Post by Ace on Dec 16, 2020 13:41:10 GMT
Excellent work mw, you get my vote for this year's plain English award. You have also shamed LW for refusing to clearly explain this. Perhaps they should consider putting this on their website. I was intending to slate LW for implementing the interest clawback in this way, as it clearly penalises loyal lenders. Those like me, who withdrew the bulk of their investment back in Jan, will have escaped with most of their interest intact; had we remained fully invested we would now be having that interest taken back. It strikes me as a cynical attempt to be able to defend their "no lender has lost capital" statement when they start touting for new business. However, try as I might, I can't come up with a better system. They are a business after all, and defending that statement will be valuable if they do open up to new lending. |
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mw
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Post by mw on Dec 16, 2020 14:33:40 GMT
However, try as I might, I can't come up with a better system. Nor can I. It is essentially a pooled system, but lenders have an ability to leave the pool "at will". Perhaps some sort of conservative "with profits" or "terminal bonus" approach similar to that of a Life Assurance company might provide some hints. But, then, that strays rather too far from P2P.
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criston
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Post by criston on Dec 16, 2020 16:42:13 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. The shield deduction, related to the repayment with the same transaction number, was actually 7.85%
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Post by m1kehunt on Dec 16, 2020 17:47:36 GMT
UPDATE - Finally got the loan book to download after having issues so had a proper look and have figured it out
Still confused? Most of my shield contributions range from 10-11% of capital repayment but a few are above 99% ie below:
07/12/2020 Capital repayment received 1018816 Growth Borrower 14.65439
07/12/2020 Shield contribution adjustment 1018816 Growth N/A -14.64
Total Gross is 14.65439+14.64 and as it's 2018 loan the shield contribution is a shocking 50% of the gross as correctly suggested above..
-99.90% ?
01/12/2020 Capital repayment received 1890694 Growth Borrower 5.2168
02/12/2020 Shield contribution adjustment 1890694 Growth N/A -5.21
-99.87%
The other loans are after 2019 so 10%/nothing
I hope this doesn't go on too much longer!
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Post by tommycatz on Dec 18, 2020 21:45:41 GMT
Ratesetter is sold and uses part of the money to pay out Investors who having been queuing since March to withdrawal their investments.
LW is sold and investors continue to suffer negative interest.
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criston
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Post by criston on Jan 4, 2021 14:37:25 GMT
Have not calculated my own yet, but a poster on Trustpilot says 2.2% capital was taken during December alone.
So it's this week they restart lending.
Will it be something attractive like 8% & a suggestion of a bulging 'Shield' funded by us existing lenders.
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Post by Ace on Jan 4, 2021 15:07:49 GMT
Ratesetter is sold and uses part of the money to pay out Investors who having been queuing since March to withdrawal their investments. LW is sold and investors continue to suffer negative interest. I think there's a bit of a misunderstanding of the Ratesetter situation here. None of the funds from the sale of Ratesetter have been used to "pay out investors". It's the funds from the sale of the property loans that are being returned to the lenders of those funds. Much of those returned funds are then being reinvested by those lenders (at very poor rates) which is allowing many RYIs to complete.
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benaj
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Post by benaj on Jan 4, 2021 15:41:45 GMT
Update from my partner's account (December) Shield contribution for late loans: £-1.05 Capital received from the shield: £1.71 Getting 39% capital repayment back from arrears. Shield contribution for active loans loans: £-23.24 Capital received from active loans: £63.37 Getting 63% capital repayment back from active loans. Let's hope the relending in January will reduce these shield contribution significantly. Latest observation since 2021
NO SHIELD CONTRIBUTION YET.
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Post by jonrgrant on Jan 5, 2021 4:42:11 GMT
My current financial changes of account funds is the reduction of £400 @ 3.3% to date since the painful and non agreed extraction began.
The shield has failed to protect the attack in the back and bleeding persists.
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Post by EJi on Jan 5, 2021 14:27:58 GMT
New rates are up. Looks like they're open for lending again. 4% for flexible, 4.5% for growth.
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mogish
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Post by mogish on Jan 5, 2021 15:04:13 GMT
New rates are up. Looks loke they're open for lending again. 4% for flexible, 4.5% for growth. the words flexible , growth , fair and simple perhaps need looking at. In my experience none apply.
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ashtondav
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Post by ashtondav on Jan 5, 2021 15:22:59 GMT
No. Perhaps not during the worst pandemic since 1918. Probably wouldn’t look too good if there were a world war either.
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