sl75
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Post by sl75 on May 5, 2020 11:49:11 GMT
I've not had time to look into it all properly (and only at the end of a lunch break now), but my understanding was that AC were taking a lender fee equivalent to 0.x% annualised.
Instead, my current statement shows that all recent interest transactions have been claimed in full by AC.
e.g.
05/05/2020, 10:00 Claimed Lender Fee of £1.1161504805837038764216253249999999998234 from Interest payment of £1.1161504805837038764216253249999999998234 for loan [redacted] (886)
I would instead have expected that the claimed lender fee would be some pence, and that I would receive directly the balance of the interest.
Is this a bug, or did I miss an announcement that MLA investors are no longer eligible for receiving any interest [if so what reasons?]?
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on May 5, 2020 11:58:51 GMT
I've not had time to look into it all properly (and only at the end of a lunch break now), but my understanding was that AC were taking a lender fee equivalent to 0.x% annualised.
Instead, my current statement shows that all recent interest transactions have been claimed in full by AC.
e.g.
05/05/2020, 10:00 Claimed Lender Fee of £1.1161504805837038764216253249999999998234 from Interest payment of £1.1161504805837038764216253249999999998234 for loan [redacted] (886)
I would instead have expected that the claimed lender fee would be some pence, and that I would receive directly the balance of the interest.
Is this a bug, or did I miss an announcement that MLA investors are no longer eligible for receiving any interest [if so what reasons?]?
Yes this has happened to me. However my "outstanding fee" is now £0 so I would expect all MLA Capital AND interest to be credited to my account for the rest of May. In June, a new "outstanding fee" will be created which will have first call on my June MLA interest repayments. Not great is it?
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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 May 5, 2020 12:09:53 GMT
I've not had time to look into it all properly (and only at the end of a lunch break now), but my understanding was that AC were taking a lender fee equivalent to 0.x% annualised.
Instead, my current statement shows that all recent interest transactions have been claimed in full by AC.
e.g.
05/05/2020, 10:00 Claimed Lender Fee of £1.1161504805837038764216253249999999998234 from Interest payment of £1.1161504805837038764216253249999999998234 for loan [redacted] (886)
I would instead have expected that the claimed lender fee would be some pence, and that I would receive directly the balance of the interest.
Is this a bug, or did I miss an announcement that MLA investors are no longer eligible for receiving any interest [if so what reasons?]?
You have accrued fees on the value of your portfolio during April, excluding any defaulted loans on which fees aren't charged, this is charged in arrears at the start of the following month so all interest payments received at the start of the month will be used to pay the arrears. The exception AIUI is any loans that missed their payment in the proceeding month(s) where the fee will accrue and only be recovered when the interest is paid (assuming fees are still being levied) The actually recording of this in the statements is currently incomprehensible IMO. The entries for fees are actually the interest payments which are then reclaimed to cover the fees due. Once you have paid the arrears then they revert back to being described as interest So for yesterday I have a load saying claimed lender fee for the full amount, then one where only part of the interest was claimed and then everything afterwards is back to being interest. Havent even tried to reconcile it with tax statement yet
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cb25
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Post by cb25 on May 5, 2020 12:41:45 GMT
I raised this with AC via LiveChat
me: My MLA account transaction log shows a number of entries like this: “4/5/20 Claimed Lender Fee of £1.67 from Interest payment of £1.67 for loan XXX (973)”. i.e. it looks as though AC have taken ALL of the interest paid to me as a fee, rather than just a small percentage. I'm not the only one seeing this. Are AC - e.g. Stuart - going to be publishing an email stating what is going on, as nobody can understand why they appear to be losing ALL of their interest?
AC: Hi, thanks for bringing this to our attention. I will raise this with management
me: Thank you, we'll await the response with interest!
---
Got an email a while later from the Livechat operative:
"This is what the lender fee email sent to lenders on Thursday evening states:
For Manual Lending Account investors, any interest payments due to be paid to a lender whilst they have an outstanding fee balance from the first of each month would be used to pay the fee first, with remaining interest paid to the lender. This is also how other discontinued accounts will operate like the Property Secured Account etc.
As such, the fee will be taken ahead of any additional interest earned throughout the month."
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on May 5, 2020 17:02:04 GMT
I raised this with AC via LiveChat
me: My MLA account transaction log shows a number of entries like this: “4/5/20 Claimed Lender Fee of £1.67 from Interest payment of £1.67 for loan XXX (973)”. i.e. it looks as though AC have taken ALL of the interest paid to me as a fee, rather than just a small percentage. I'm not the only one seeing this. Are AC - e.g. Stuart - going to be publishing an email stating what is going on, as nobody can understand why they appear to be losing ALL of their interest?
AC: Hi, thanks for bringing this to our attention. I will raise this with management
me: Thank you, we'll await the response with interest!
---
Got an email a while later from the Livechat operative:
"This is what the lender fee email sent to lenders on Thursday evening states:
For Manual Lending Account investors, any interest payments due to be paid to a lender whilst they have an outstanding fee balance from the first of each month would be used to pay the fee first, with remaining interest paid to the lender. This is also how other discontinued accounts will operate like the Property Secured Account etc.
As such, the fee will be taken ahead of any additional interest earned throughout the month."
I think that's what I said. It's shite but it's not rocket science.
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mikes1531
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Post by mikes1531 on May 11, 2020 20:22:37 GMT
As such, the fee will be taken ahead of any additional interest earned throughout the month."
I think that's what I said. It's shite but it's not rocket science. Perhaps. But it's better than one possible alternative, which would have been to debit our accounts for the fee immediately without waiting for any interest to be received.
And I'm no expert -- or even close -- but I think we'll be better off when the time comes to pay our taxes as well. If it means we'll see less interest credited to our accounts then we'll have less income reported to be paying tax on. If they paid all of our interest and then debited the fee AIUI we'd end up paying tax on all of the interest and not be able to offset any of the fee against the interest.
This probably has been discussed in another thread and I just haven't found that yet. 
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on May 12, 2020 8:35:19 GMT
I think that's what I said. It's shite but it's not rocket science. Perhaps. But it's better than one possible alternative, which would have been to debit our accounts for the fee immediately without waiting for any interest to be received.
And I'm no expert -- or even close -- but I think we'll be better off when the time comes to pay our taxes as well. If it means we'll see less interest credited to our accounts then we'll have less income reported to be paying tax on. If they paid all of our interest and then debited the fee AIUI we'd end up paying tax on all of the interest and not be able to offset any of the fee against the interest.
This probably has been discussed in another thread and I just haven't found that yet. You're quite right of course, and the methodology was discussed after AC announced their plans. My pejorative statement was aimed more generally at the monthly "fee" rather than the precise methodology.
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Post by lynnanthony on May 12, 2020 10:13:27 GMT
I think that's what I said. It's shite but it's not rocket science. Perhaps. But it's better than one possible alternative, which would have been to debit our accounts for the fee immediately without waiting for any interest to be received.
Well actually, I would prefer that to the current incomprehensible mess, it would be easier to see what is going on. As it is it has taken me half an hour to work out which loans have paid interest and how much, and how much Assetz have taken (and I have a relatively simple MLA). Am I unusual in tracking these things?
Interestingly, Assetz have taken their fee from April loans paying late rather than actual May interest payments.
I would really like to see two line entries for each "take." One for me receiving interest, one for AZ taking it back as a charge.
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Post by Ace on May 12, 2020 11:33:41 GMT
Perhaps. But it's better than one possible alternative, which would have been to debit our accounts for the fee immediately without waiting for any interest to be received.
Well actually, I would prefer that to the current incomprehensible mess, it would be easier to see what is going on. As it is it has taken me half an hour to work out which loans have paid interest and how much, and how much Assetz have taken (and I have a relatively simple MLA). Am I unusual in tracking these things?
Interestingly, Assetz have taken their fee from April loans paying late rather than actual May interest payments.
I would really like to see two line entries for each "take." One for me receiving interest, one for AZ taking it back as a charge.
AIUI: Two line entries would make the fee (actually the interest that was used to pay the fee) liable for tax. The way is been implemented avoids tax on the interest that was used to pay the fee, as you don't actually receive the interest.
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