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Post by bikeman on Apr 8, 2020 9:53:44 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. You think it fair that someone who's only holding with AC are suspended IL* loans that AC previously promised to refund but now can suspend indefinitely whilst levying an ongoing 'servicing fee' for as long as they deem fit? Effectively they've turned a liability into a revenue stream.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 8, 2020 10:07:46 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. You think it fair that someone who's only holding with AC are suspended IL* loans that AC previously promised to refund but now can suspend indefinitely whilst levying an ongoing 'servicing fee' for as long as they deem fit? Effectively they've turned a liability into a revenue stream. Fee isn't being levied on default loans.
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jlend
Member of DD Central
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Post by jlend on Apr 8, 2020 10:25:49 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. You think it fair that someone who's only holding with AC are suspended IL* loans that AC previously promised to refund but now can suspend indefinitely whilst levying an ongoing 'servicing fee' for as long as they deem fit? Effectively they've turned a liability into a revenue stream. As ilmoro has said the fee is not payable on defaulted loans. AC are also only taking the fee from via any interest payments that are being made by borrowers so I wouldn't worry about the fee impacting the loans you mention right now. If your only holdings are the loans you mention you need AC to survive and the fees are a small but important part of that. I also hold the loans you mention.
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Post by bikeman on Apr 8, 2020 19:33:54 GMT
You think it fair that someone who's only holding with AC are suspended IL* loans that AC previously promised to refund but now can suspend indefinitely whilst levying an ongoing 'servicing fee' for as long as they deem fit? Effectively they've turned a liability into a revenue stream. As ilmoro has said the fee is not payable on defaulted loans. AC are also only taking the fee from via any interest payments that are being made by borrowers so I wouldn't worry about the fee impacting the loans you mention right now. If your only holdings are the loans you mention you need AC to survive and the fees are a small but important part of that. I also hold the loans you mention. Good to know but I think their communication could have been clearer. I've lost all trust in AC - they seem to make up the rules as they go along.
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Post by cmundo on Apr 30, 2020 14:51:02 GMT
How will the fee be applied? Offset against interest, deducted from cash account, AA holding Value reduced? Do we know?
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Apr 30, 2020 15:40:15 GMT
stuartassetzcapitalQ1, Why are lender fees disproportionately unfair on lenders holding loans with low interest rates? As an example, if I have a 5% loan that makes monthly repayment, I incur an 18% loss of earnings. If I have an 10% loan that makes repayment I incur a 9% loss of earnings. Q2, Also are the lenders fees date stamped against a loan repayment date? If a loan stops making repayment for the forbearance period and makes up the repayments after lender fees are dropped, will lenders avoid the fees. Q3. Does the scenario in Q2 also apply to defaulted loans?
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iRobot
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Post by iRobot on Apr 30, 2020 19:34:41 GMT
For those that may not have received it for whatever reason, a " Lender Fee Update" email was sent earlier this evening. |
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p2ploser
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Post by p2ploser on Apr 30, 2020 22:29:40 GMT
I think an unintended consequence of this will have the effect of making any low interest loans uninvestable should any new loans come on to the platform any time soon as it’s effectively 1% reduction to the advertised rate. For me now, anything under 7% is not worth the risk. stuartassetzcapital Q1, Why are lender fees disproportionately unfair on lenders holding loans with low interest rates? As an example, if I have a 5% loan that makes monthly repayment, I incur an 18% loss of earnings. If I have an 10% loan that makes repayment I incur a 9% loss of earnings. Q2, Also are the lenders fees date stamped against a loan repayment date? If a loan stops making repayment for the forbearance period and makes up the repayments after lender fees are dropped, will lenders avoid the fees. Q3. Does the scenario in Q2 also apply to defaulted loans? |
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Post by Harland Kearney on Apr 30, 2020 22:34:47 GMT
I think an unintended consequence of this will have the effect of making any low interest loans uninvestable should any new loans come on to the platform any time soon as it’s effectively 1% reduction to the advertised rate. For me now, anything under 7% is not worth the risk. stuartassetzcapital Q1, Why are lender fees disproportionately unfair on lenders holding loans with low interest rates? As an example, if I have a 5% loan that makes monthly repayment, I incur an 18% loss of earnings. If I have an 10% loan that makes repayment I incur a 9% loss of earnings. Q2, Also are the lenders fees date stamped against a loan repayment date? If a loan stops making repayment for the forbearance period and makes up the repayments after lender fees are dropped, will lenders avoid the fees. Q3. Does the scenario in Q2 also apply to defaulted loans? Honestly, I highly doubt they will be doing any new loans whilst this fee is in place. If they did, I would be quite uncomfortable about that and I think many lenders would be too. It is being reviewed end of July.
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rscal
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Post by rscal on May 1, 2020 7:10:19 GMT
I've followed the advice in yesterday's email and turned on the 'outstanding fee' in dashboard settings. I wonder if this changes daily and then goes down as income is recieved or something. At least study will reveal its behaviour.
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p2ploser
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Post by p2ploser on May 1, 2020 8:29:18 GMT
I think an unintended consequence of this will have the effect of making any low interest loans uninvestable should any new loans come on to the platform any time soon as it’s effectively 1% reduction to the advertised rate. For me now, anything under 7% is not worth the risk. Honestly, I highly doubt they will be doing any new loans whilst this fee is in place. If they did, I would be quite uncomfortable about that and I think many lenders would be too. It is being reviewed end of July. I think based on the logic in the email they sent justifying the fee this fee will have to stay until they get enough new loan business that they can make money again so I don’t expect as soon as new loans start appearing that this fee will disappear.
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ptr120
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Post by ptr120 on May 1, 2020 8:36:16 GMT
stuartassetzcapitalI have a question about the email that was sent out yesterday. Under the heading What is the lender fee? you state that it "is the minimum fee that we could charge". Yet in the final parragraph, you state that "we hope to reduce and eventually remove it as quickly as is practical". If indeed the charge is the lowest that you could charge, how is it possible to reduce, rather than remove the charge?
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jlend
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Post by jlend on May 1, 2020 8:47:14 GMT
chrisFurther info here www.assetzcapital.co.uk/lender-feesNot quite sure what this means: ----- Loan C misses their April repayment, and is recorded as ‘in default’ in May. All fees accrued that have not fallen due will be discarded, and no further fees will be accrued for that loan. --- As far as I can see, I only have loans AC have recorded as Default" loans left in the investment accounts,been recorded as default for some time. Nothing in the access accounts, nothing in the manual accounts. However I am getting accrued fees building up according to my dashboard. Am I missing something?
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iRobot
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Post by iRobot on May 1, 2020 8:51:10 GMT
stuartassetzcapital I have a question about the email that was sent out yesterday. Under the heading What is the lender fee? you state that it "is the minimum fee that we could charge". Yet in the final parragraph, you state that "we hope to reduce and eventually remove it as quickly as is practical". If indeed the charge is the lowest that you could charge, how is it possible to reduce, rather than remove the charge? I simply read that as 'this is the minimum fee we need to charge at the present time given what we currently know - we could have charged more, but we don't feel we can charge less at the moment' Then as the situation unfolds, and AC's revenues (hopefully) improve, it may be possible to reduce the fees, ultimately removing them completely.
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Post by chris on May 1, 2020 8:51:34 GMT
jlend - if you PM me your email address I'll get someone to look into your specific account
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