Mikeme
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Post by Mikeme on Mar 27, 2020 14:56:15 GMT
I suspect many, if not most, borrowers are about to hit problems making repayments on their loans due to the lock-down. Normally my view with Borrowers would be "you signed an agreement to make repayments, if you fail to do so we'll follow the non-payment route laid out in your agreement and if that ultimately means your company folds and/or guarantees get called in, so be it". I'm in P2P to make money and still want to make money but not at the expense of forcing problems on a huge number of companies in what are clearly very unusual times. Otherwise, Lenders could come out of this feeling quite happy on the money they've made, but in a devastated business landscape.
AC have procedures for dealing with missed payments which we're all aware of - 'reservation of rights' letters sent to Borrowers, Lender Votes etc. If AC change nothing, I suspect they'll soon be inundated with that sort of workload on a huge number of Borrowers and we'll spend a lot of our time completing Lender Votes, most of which will be "allow an extension or demand repayment". AC could simplify that by granting some/all Borrowers a repayment holiday, say of 1-3 months, subject to a single Lender Vote on the principle rather than loan-specific.
Giving all Borrowers a repayment holiday would be easiest, Borrowers wouldn't have to prove hardship, minimal paperwork for AC, just do it across the board. Giving only those Borrowers who could 'prove' hardship sounds attractive, but what would 'proof' involve? This option might involve AC in more paperwork than simply following the normal route.
A consequence of some/all Borrowers being given a repayment holiday would almost certainly mean the Access Accounts would pay zero, or much reduced, interest for that period. It could be argued that Lenders won't be losing money, the payments are simply deferred.
Was it only yesterday you put the vote up? For me It's obvious that only "A" can work. Too much work for anything else to be feasible. As you aptly put it A consequence of some/all Borrowers being given a repayment holiday would almost certainly mean the Access Accounts would pay zero, or much reduced, interest for that period. It could be argued that Lenders won't be losing money, the payments are simply deferred. We all need AC to take the right action for the lowest losses in the long term rather than some money back in the short term. Don't let us feed the lawyers. This from another platform. UPDATE: We have been advised by the Receivers that all parties that demonstrated an interest, either pre-auction or on the day itself, have withdrawn interest due to current market conditions. The Receivers are currently re-appraising and obtaining additional auction recommendations. We will provide a further update in due course. Not even vultures are buying.
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jo
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Post by jo on Mar 27, 2020 15:08:04 GMT
I think it would be difficult to enforce anything during a period of special measures (mortgage holidays etc). It plays badly.
It's also important to be realistic about the fact that not all borrowers are 'plucky tradesmen' keeping the country functioning. There were some, um, questionable operators prior to this for whom x months 'no hassle, no payment' will simply be looked on as a relief from making excuses.
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ilmoro
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Post by ilmoro on Mar 27, 2020 15:31:41 GMT
Where is this found please? AC have been putting the same update in many loans today, e.g #924 Yeah, good luck identifying any loans which have had any other kind of update today or the previous couple of days when they posted the general development one on multiple loans. Somebody hasn't thought that one through. About 220 loans to wade through to find any good, bad or ugly news 
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jlend
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Post by jlend on Mar 27, 2020 16:06:44 GMT
AC have been putting the same update in many loans today, e.g #924 Yeah, good luck identifying any loans which have had any other kind of update today or the previous couple of days when they posted the general development one on multiple loans. Somebody hasn't thought that one through. About 220 loans to wade through to find any good, bad or ugly news Feels like it might have been compliance driven. At the moment they have a virus related page dedicated to the Access Accounts, including FAQs. It may make sense to expand this to any generic messages they want to get out related to the virus stuff. They have also made changes to some other pages, e.g. Loan Performance The Data used in the tables below is as at 31 January 2020. Please be aware that due to the developing Coronavirus pandemic there are likely to material movements in our Defaults and Losses positions with Borrowers. In the circumstances, the information in the tables below should not be regarded as indicative of future loan performance.
Without sign posting what they are updating there is no way lenders can be expected to have read some of the changes. There is simply too much text. Even at this early stage some of the new text is inconsistent which is almost unavoidable because of the way they have done it.
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cb25
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Post by cb25 on Mar 27, 2020 16:07:32 GMT
AC have been putting the same update in many loans today, e.g #924 Yeah, good luck identifying any loans which have had any other kind of update today or the previous couple of days when they posted the general development one on multiple loans. Somebody hasn't thought that one through. About 220 loans to wade through to find any good, bad or ugly news Would have been better imo if AC had emailed the two generalized Lender Updates, then - as you say - we wouldn't have hundreds of updates than gave no specific loan information.
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p2pfan
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Post by p2pfan on Mar 27, 2020 16:10:18 GMT
I think the question ought to be: Should AC give some/all Lenders an instant bonus payment of 5% to their total investments to help them out at this time of crises?
All human beings are equal in the eyes of our friend the Coronavirus and all are suffering in different ways, so I don't see why borrowers should have a preference over lenders.
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cb25
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Post by cb25 on Mar 27, 2020 16:13:25 GMT
I think the question ought to be: Should AC give some/all Lenders an instant bonus payment of 5% to their total investments to help them out at this time of crises? All human beings are equal in the eyes of our friend the Coronavirus and all are suffering in different ways, so I don't see why borrowers should have a preference over lenders. A repayment holiday doesn't give Borrowers a single penny, just defers their repayments to Lenders for a while. Also, where would AC get the 5% from given they can't even release the money lenders are trying to withdraw?
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Mikeme
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Post by Mikeme on Mar 27, 2020 16:19:55 GMT
I think the question ought to be: Should AC give some/all Lenders an instant bonus payment of 5% to their total investments to help them out at this time of crises? All human beings are equal in the eyes of our friend the Coronavirus and all are suffering in different ways, so I don't see why borrowers should have a preference over lenders. NO NO NO We need AC to survive.
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Post by Harland Kearney on Mar 27, 2020 16:20:26 GMT
I think the question ought to be: Should AC give some/all Lenders an instant bonus payment of 5% to their total investments to help them out at this time of crises? All human beings are equal in the eyes of our friend the Coronavirus and all are suffering in different ways, so I don't see why borrowers should have a preference over lenders. Whos paying for the 5%? Borrowers don't have preference, it maybe is not in lenders best interest to break borrowers knee caps because they arent' allowed to open their store due to Goverment Order.
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Post by lynnanthony on Mar 27, 2020 16:46:50 GMT
Depends on the business. Pubs etc, yes, give 'em a holiday. Developers: - mostly our interest is paid out of retained money, so developers are already not paying anything monthly. All cases should be looked at on an individual basis.
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Mikeme
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Post by Mikeme on Mar 27, 2020 17:16:00 GMT
I suspect many, if not most, borrowers are about to hit problems making repayments on their loans due to the lock-down. Normally my view with Borrowers would be "you signed an agreement to make repayments, if you fail to do so we'll follow the non-payment route laid out in your agreement and if that ultimately means your company folds and/or guarantees get called in, so be it". I'm in P2P to make money and still want to make money but not at the expense of forcing problems on a huge number of companies in what are clearly very unusual times. Otherwise, Lenders could come out of this feeling quite happy on the money they've made, but in a devastated business landscape.
AC have procedures for dealing with missed payments which we're all aware of - 'reservation of rights' letters sent to Borrowers, Lender Votes etc. If AC change nothing, I suspect they'll soon be inundated with that sort of workload on a huge number of Borrowers and we'll spend a lot of our time completing Lender Votes, most of which will be "allow an extension or demand repayment". AC could simplify that by granting some/all Borrowers a repayment holiday, say of 1-3 months, subject to a single Lender Vote on the principle rather than loan-specific.
Giving all Borrowers a repayment holiday would be easiest, Borrowers wouldn't have to prove hardship, minimal paperwork for AC, just do it across the board. Giving only those Borrowers who could 'prove' hardship sounds attractive, but what would 'proof' involve? This option might involve AC in more paperwork than simply following the normal route.
A consequence of some/all Borrowers being given a repayment holiday would almost certainly mean the Access Accounts would pay zero, or much reduced, interest for that period. It could be argued that Lenders won't be losing money, the payments are simply deferred.
Maybe we should add an option Allow AC to decide as they have much more information than us lenders. I'd vote for this
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Post by gravitykillz on Mar 27, 2020 18:52:51 GMT
Anyone managed to get their money back yet ?
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travolta
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Post by travolta on Mar 27, 2020 20:34:03 GMT
Looks like most of them are taking one anyway.
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Post by df on Mar 27, 2020 21:03:54 GMT
Anyone managed to get their money back yet ? So far some withdrawals are coming into my cash account every day. Some of it I'm reinvesting back into 30&90-day. As for the subject, I think the best decision maker in this situation is AC, I don't have an expertise to give AC any advice on this matter so I didn't tick any box in this poll.
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Post by jasonnewman on Mar 29, 2020 0:03:06 GMT
No payment holiday at all in my view.
Weak businesses need to be identified early on and AC needs to recoup as much of investor capital as possible, payment holiday will mean others will be paid ahead of AC investors therefore I don't agree with any payment holidays.
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