|
|
Post by tdeinvest on Feb 4, 2020 17:14:52 GMT
On all recent recovered loans where interest has been paid, a haircut has been applied to this when credited to my account. Are we aware of what this is supposed to represent?
|
|
arby
Member of DD Central
Posts: 910
Likes: 959
|
Post by arby on Feb 4, 2020 19:30:20 GMT
On all recent recovered loans where interest has been paid, a haircut has been applied to this when credited to my account. Are we aware of what this is supposed to represent? It provides cash for the administrators to function. While one could argue that isn't our problem, when the administrators need to be paid to try and make the best case out of all the mess it's the easy way of ensuring there is the cash flow they need.
|
|
|
|
Post by waryinvestor on Feb 7, 2020 15:59:12 GMT
On all recent recovered loans where interest has been paid, a haircut has been applied to this when credited to my account. Are we aware of what this is supposed to represent? The Admins charge 2.5% + VAT (total 3%) + disbursements from the total amount recovered for the defaulted Loans. For the rest, it is less.
|
|
sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,426 
Likes: 1,211
|
Post by sqh on Feb 7, 2020 20:43:29 GMT
Diamond Jewellery and Watches Loan 3219440798 repaid in full today, 7th February 2020.
For every £1000 invested lenders get £18.30 interest, the administrators get £31.70 plus the FS interest. The loan was 3 working days past it's end date, that's the bank transfer time for large payments. If the loan had repaid 3 days earlier lenders would get £49.25 interest.
This doesn't seem right to me, I don't think that accrued interest should go backwards. It seems like another version of the Lendy waterfall.
|
|
arby
Member of DD Central
Posts: 910
Likes: 959
|
Post by arby on Feb 7, 2020 22:34:43 GMT
Likewise on ripon today. I had £1000 capital returned with just £15 interest, with the loan repaying after 193 days.
The administration is a case of they get two thirds of any upside while I get all the down side.
Just checked, also had £1750 in the ISA in it. As the loan was a week late at repayment (assuming it was repaid today and not just that the administrator sat on the money for a few days to justify the extra 2.5%) then they are technically allowed to charge the extra fee.
|
|
|
|
Post by defaultinator5000 on Feb 8, 2020 20:43:27 GMT
Diamond Jewellery and Watches Loan 3219440798 repaid in full today, 7th February 2020. For every £1000 invested lenders get £18.30 interest, the administrators get £31.70 plus the FS interest. The loan was 3 working days past it's end date, that's the bank transfer time for large payments. If the loan had repaid 3 days earlier lenders would get £49.25 interest. This doesn't seem right to me, I don't think that accrued interest should go backwards. It seems like another version of the Lendy waterfall. Agreed, one wonders how is this compatible with the 2.5% recovery fees they stated and whether that is actually justified given that some of these loans were merely days overdue. The devil is probably somewhere in the small print. It's just a shame that the small print is not the one stating the investors' funds are ring-fenced and that an orderly wind-down plan exists for the company. All of it right next to the FCA-approved logo, of course.
|
|
|
|
Post by fsbloke on Feb 10, 2020 4:44:59 GMT
I agree with the above posts that several loans have now been defaulted when they have in fact repaid in full within a few days of the maturity date. This seems to be a vague and favourable interpretation of what "defaulted" actually means. To legally comply (Consumer Credit Act) CG should have issued a default notice to the borrower and allowed a further minimum period of 14 days (?) thereafter to comply. If the "Default Notice" has not been issued (and in these particular loans it will not have been as they were only a matter of a few days late) then the loan cannot, in any way, be considered as defaulted.
Having said all that it should be noted that the "Administrators Proposals 8.5" refer to "defaulted" assets as where the term has expired and hence our confusion amongst lenders. I think it stinks, and so do you, but that would appear to be what was agreed at the Creditors Meeting. Cute? Yes because they are not sending out letters pleading with borrowers to fully settle by the maturity date otherwise their lenders will be penalised with a "default" clause due to non-payment!
|
|
