alender
Member of DD Central
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Post by alender on Mar 21, 2020 0:26:07 GMT
It would seem from the paltry funds that AC has allowed to be withdrawn today they are very short of cash. I am coming to the belief that they pushed this to the wire and should have locked down sooner to stop the outflow so they would have had more funds available. I guess they were hoping it would not come to this but I would have thought it was becoming obvious days before the lock down that this was becoming inevitable given the lack of liquid funds.
Once they lock down and the inevitable happened that a large number of investors wished to withdraw funds AC were left playing catch up trying to think of a way to deal with this while also having to rush out a technical solution. If they had been more proactive and decided how to handle a lock down and acted sooner more funds could have been distributed to investors in a shorter space of time instead of the panicking/lucky few getting all the available funds. I sure no investor would be happy but would have been less upset than waiting for over a week for £42.49 and may be more willing to stick with AC in the future.
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sapphire
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Post by sapphire on Mar 21, 2020 5:57:40 GMT
It would seem from the paltry funds that AC has allowed to be withdrawn today they are very short of cash. I am coming to the belief that they pushed this to the wire and should have locked down sooner to stop the outflow so they would have had more funds available. I guess they were hoping it would not come to this but I would have thought it was becoming obvious days before the lock down that this was becoming inevitable given the lack of liquid funds.
Once they lock down and the inevitable happened that a large number of investors wished to withdraw funds AC were left playing catch up trying to think of a way to deal with this while also having to rush out a technical solution. If they had been more proactive and decided how to handle a lock down and acted sooner more funds could have been distributed to investors in a shorter space of time instead of the panicking/lucky few getting all the available funds. I sure no investor would be happy but would have been less upset than waiting for over a week for £42.49 and may be more willing to stick with AC in the future. Yes, it appears that the bus driver (AC) knew that the bus (QAA) had a faulty/inappropriate set of brakes (queueing system) which was not sufficiently robust to cope with inclement weather and so should have slowed down or braked sooner, at the first sight of rain drops, to avoid a crash and likely injury/death to its passengers (lenders). I think the fact remains that the bus should *not* have started its long journey in the first place, with a faulty/inappropriate set of brakes, and I find it difficult to accept the bus driver's excuse blaming the 'wrong type of snow' for this accident. I do hope that the (hastily requisitioned) replaced set of brakes (new queuing/pooling system) is able to take the passengers to the end of their journey (full repayment of amount lent), albeit slower/later than expected, where they can nurse their injuries and recover from this crash. I also think it is not appropriate to fully dissect the injured bus driver at this point in time (for a post-mortem) for this could result in his death and leave the passengers stranded in the middle of a motorway. What the regulator (FCA) should have done to prohibit/stop such a bus from being allowed to start its journey in the first place, with a full load of passengers, is another question which needs an answer in due course.
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jeremy12
Member of DD Central
Everything's frozen
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Post by jeremy12 on Mar 21, 2020 9:01:32 GMT
I 'ate you Butler Attachments:
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rscal
Posts: 903
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Post by rscal on Mar 21, 2020 9:19:44 GMT
Principal repayments (which includes loan redemptions as they happen) can be switched to 'withdraw to cash' on the Access accounts. This will generate a trickle for anyone keen to withdraw something from the platform.
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Balder
Member of DD Central
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Post by Balder on Mar 21, 2020 9:40:53 GMT
the hindsight(ers) appear.
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Mikeme
Member of DD Central
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Post by Mikeme on Mar 21, 2020 11:51:01 GMT
There's a possibility money here is better than cash!
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sl75
Posts: 2,092
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Post by sl75 on Mar 21, 2020 14:41:17 GMT
Principal repayments (which includes loan redemptions as they happen) can be switched to 'withdraw to cash' on the Access accounts. This will generate a trickle for anyone keen to withdraw something from the platform. That option doesn't do what you think it does on the access accounts.
Actually, on the access accounts, it doesn't seem to do anything at all - only the interest payments are controlled by the "withdrawal" option. I think the UI was simply copied from the MLA and GBBA/GEIA/PSA style of account and nobody thought through that the QAA etc. don't have principal repayments - at least not until or unless an option to convert the investment into the underlying loan holdings gets added.
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rscal
Posts: 903
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Post by rscal on Mar 21, 2020 17:37:07 GMT
sl75 Thanks for that. But do remember to have interest payments /withdraw to cash/ (i.e. before the impending end of the month) - or miss out.
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Post by Ton ⓉⓞⓃ on Mar 22, 2020 10:09:27 GMT
It would seem from the paltry funds that AC has allowed to be withdrawn today they are very short of cash. I am coming to the belief that they pushed this to the wire and should have locked down sooner to stop the outflow so they would have had more funds available. I guess they were hoping it would not come to this but I would have thought it was becoming obvious days before the lock down that this was becoming inevitable given the lack of liquid funds.
Once they lock down and the inevitable happened that a large number of investors wished to withdraw funds AC were left playing catch up trying to think of a way to deal with this while also having to rush out a technical solution. If they had been more proactive and decided how to handle a lock down and acted sooner more funds could have been distributed to investors in a shorter space of time instead of the panicking/lucky few getting all the available funds. I sure no investor would be happy but would have been less upset than waiting for over a week for £42.49 and may be more willing to stick with AC in the future. I believe AC aren't allowed to unduly delay payments to Lenders and at the same time AC have signed up to make loans to certain Borrowers, i.e. this is about balancing competing demands on the AA money. AC has two sets of customers both entitled to money. I 'ate you Butler  TfL has ~8,600 buses in London I've no idea how many there are in Manchester. The FCA might need to call up some of the old bus inspectors
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Mar 22, 2020 10:41:58 GMT
The problem was not inflows - money coming in during the days leading up to the suspension still exceeded withdrawals - but they were lending out even more. The initial fall in the cash reserve was not, as AC claim, due to withdrawals exceeding deposits, it was AC lending out the cash reserve. It would have been embarrassing to turn down loans that they had spent time and energy negotiating, but I suppose not illegal. If they had suspended loans once cash reserves fell below 10% they would have been fine. They might even have got away with a 5% trigger but they decided to skate on thin ice. To be fair they also did this last year and got away with it so might have thought they could repeat the feat, but that episode actually concentrated attention on the cash position. The fault is entirely with AC and has little to do with Covid-19 or the stock market crash although they may have aggravated the situation.
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