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Post by buzzablinio on Feb 14, 2020 11:17:42 GMT
Can anyone post here where Lending Works advised that from January they would be clawing back interest from investors making early withdrawals over and above the declared 0.5% penalty fee?
Being such a simple and clear platform I know they would have communicated the change but I just can't find any record of it. Even more confusing is the LW website still warns of just a 0.5% early withdrawal fee which is obviously incorrect otherwise I would have been penalised circa £110 rather than circa £1600 for my early withdrawals this month.
Hope someone can clarify...maybe even a LW spokesperson.
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benaj
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Post by benaj on Feb 14, 2020 11:45:02 GMT
You may have misunderstood about the changes. The quickdraw fee have not been changed. AFAIK, Lending Works charges a small fee for selling loans in the Growth product - 0.5% www.lendingworks.co.uk/help-centre/rates-fees#section-5From Lending Works Regarding the interest shortfall penalty, it varies. The investor who buys the loans that you are selling expect 5.4% return. When I joined LW in 2018, I received accrued interest from picking older loans (not earning 6% at the time). I did remember picking up loans below 5%. p2pindependentforum.com/post/264385/threadeven someone warned me about the pooling event back in 2018 but I didn't understand at the time p2pindependentforum.com/post/265102What is not really clear, it's the "lender rates" of the loan portfolio. Lender rates are not weekly rates, not gross rates, not projected rates. All we have been told rates are variable now instead of fixed. So what is the lender rate for that below 5% loan chunk right now? I have NO IDEA. All I know about my partner's growth loans (2018 & 2019 cohorts) are performing like 5.69% XIRR in the current tax year (6th April 2019 - 31st Jan 2020) |
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Post by buzzablinio on Feb 14, 2020 13:54:53 GMT
Cheers benaj, appreciate such a comprehensive answer - pity LW didn't employ someone with your lucidity to notify their clients of the changes.
The extract you posted rings a bell now, though I guess I completely misinterpreted the update believing it meant loans redeemed early that had a lower interest rate than the current offering would suffer a higher penalty to compensate new lenders.
Since all my loans were invested in the 6.5% growth account whose new rate was now (allegedly) 5.4% this wouldn't be a problem.
I'm invested with 6 other P2Ps and have never found myself failing to understand any changes they have made so I am quite confident I know where the confusion lies. An expensive misunderstanding for me, a nice little earner for LW.
Sooner I'm out the better.
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