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Post by dan1 on Mar 31, 2020 18:02:27 GMT
Not impressed! Why don't they just reduce interest rates by 0.9%, rather than introduce a 0.9% "fee" Because interest payments are not guaranteed! The 0.9% fee will be charged on the nominal capital rather than the newly introduced capital valuation.
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bg
Member of DD Central
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Post by bg on Mar 31, 2020 18:02:40 GMT
What I will strongly object to is being charged a fee on loans that are defaulted and irrecoverable.
#146 for example was written off many years ago and the security is sold. I still have a £27k balance sitting on the system however and if I am to be charged a 0.9% annual fee on that I do not think its acceptable. Ditto #227 or any other loan that's suspended.
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alanh
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Post by alanh on Mar 31, 2020 18:02:50 GMT
Expected this and I'm in. Of course you are. Fiddling while Rome burns seems to be your speciality.
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r00lish67
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Post by r00lish67 on Mar 31, 2020 18:04:07 GMT
Asset Capital is Finished.....Well done stuartassetzcapital chris You have just totally destroyed everything you have worked on AC the past 7 years. Your platform is FINISHED - You have destroyed everything AC was known for. What exactly are you expecting here? The stock market falls 30%, property funds shut their doors, moreover the majority of economic output as we know it has ceased to exist for the time being. Did you somehow expect in these circumstances that a P2P lender primarily lending to property projects would be immediately returning your full capital plus interest? Above is a genuine question - how exactly would you have them tackle this in a realistic funded way?
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Mikeme
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Post by Mikeme on Mar 31, 2020 18:05:09 GMT
Not impressed! Why don't they just reduce interest rates by 0.9%, rather than introduce a 0.9% "fee" I think we were probably all preparing ourselves for an interest rate cut but for them to charge a fee, even if it amounts to the same thing, just adds insult to injury. They are not playing this well from a psychological point of view. They can't use interest because maybe they have money for 3 months but after that? We need them to protect the pledged assets.
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Post by Harland Kearney on Mar 31, 2020 18:10:13 GMT
This forum crashed due to the amount of people coming to post here. lol
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lara
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Post by lara on Mar 31, 2020 18:10:47 GMT
I think we were probably all preparing ourselves for an interest rate cut but for them to charge a fee, even if it amounts to the same thing, just adds insult to injury. They are not playing this well from a psychological point of view. They can't use interest because maybe they have money for 3 months but after that? We need them to protect the pledged assets. OK. It's even worse than I thought then.
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alanh
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Post by alanh on Mar 31, 2020 18:12:03 GMT
Asset Capital is Finished.....Well done stuartassetzcapital chris You have just totally destroyed everything you have worked on AC the past 7 years. Your platform is FINISHED - You have destroyed everything AC was known for. What exactly are you expecting here? The stock market falls 30%, property funds shut their doors, moreover the majority of economic output as we know it has ceased to exist for the time being. Did you somehow expect in these circumstances that a P2P lender primarily lending to property projects would be immediately returning your full capital plus interest? Above is a genuine question - how exactly would you have them tackle this in a realistic funded way? Moneything had the decency to admit that it wasn't working and have attempted to orchestrate an orderly wind down. Locking up investors capital, charging them a fee and constantly changing T&C's in a desperate attempt to stay afloat is rarely going to succeed or end well for anyone.
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Post by jasonnewman on Mar 31, 2020 18:13:00 GMT
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Mikeme
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Post by Mikeme on Mar 31, 2020 18:14:33 GMT
Expected this and I'm in. Of course you are. Fiddling while Rome burns seems to be your speciality. 32 years of running a very small manufacturing and sales company through numerous downturns helps me see realism.
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james100
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Post by james100 on Mar 31, 2020 18:14:39 GMT
OctopusChoice sent out an email 15 mins after AC *removing* their platform fee. OK, trading is suspended but still, interesting to compare / contrast the approaches of different platforms...
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Post by garreh on Mar 31, 2020 18:14:43 GMT
The fee, although undesirable, seems fairly reasonable at 0.075% per month. AC have clearly taken this approach for added security moving forwards to continue to pay interest and keep the platform in a healthier state over the coming months.
I personally see it as just a partial retraction of the 1% bonus/cashback they have been paying to lenders. In the greater scheme of things, this isn't a huge blow given the global economic downturn, cut in UK base rate, etc. It's worth noting AC are adding an additional charge to Borrowers of 0.15% per month.
On the positive side, AC have definitely been the most transparent P2P company when it comes to updates and they have given some tangible solutions to the liquidity issue where other P2P platforms are holding cards close to their chest. So you have to give them credit for that.
With that said, I do sincerely hope it is a temporary fee and things will return to normal over the coming months. We'll see how this plays out.
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p2pfan
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Post by p2pfan on Mar 31, 2020 18:15:34 GMT
For years and years all these P2P platforms arrogantly went on and on about how incredibly brilliantly they were prepared for the next downturn. Now the minute that there is a significant hiccup with the economy they are coming up with one measure after another in ever-desperate measures to stay afloat and ensure their staff keep enjoying their full salaries.
I wonder if AC staff will also be taking a haircut on their salaries? Didn't see any reference to that in this 'newsletter'. After all, they don't have to cover costs such as commuting to work any more as they're working from home in their 'Hello Kitty' onesies.
Considering that revenues for lenders are going to be thin on the ground as many borrowers will enjoy "payment holidays" and then eventually go into administration/bankruptcy, this fee will have a significant impact on lenders' net income.
A cut in interest rates earned by lenders would have been fairer, but, as others have commented, that wouldn't have been a guaranteed moneymaker for AC as it would have been dependent on performance, whereas a blanket 0.9% fee is.
Also, is it not the case that platform fees can't be offset against our taxes, so we pay tax on, say, the full £1,000 earned in loan interest rather than on £1,000 minus the 0.9% fee i.e. £991 (if only have that £1k held with AC when it's repayed - would typically be much more as AC's new fee would payable on the initial capital amount lender invested too)?
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Post by jasonnewman on Mar 31, 2020 18:16:12 GMT
ASSETZ CAPITAL IS FINISHED - They keep coming up with new surprises stuartassetzcapital chris We know you are reading these boards....You messed up. This platform is FINISHED. |
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bg
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Post by bg on Mar 31, 2020 18:17:49 GMT
Also, is it not the case that platform fees can't be offset against our taxes, so we pay tax on, say, the full £1,000 earned in loan interest rather than on £1,000 minus the 0.9% fee i.e. £991? This is an important question, hopefully they clarify it soon.
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