What is the state of the provision fund and what happens to any money in it ? Can't find any data on it ?
They have stopped reporting the state of provision fund, but most of the money in it will be used to fund the debt recovery expenses. We are past the 3 month notice period given to all borrowers which means the outstanding 30% of borrowers have either entered alternative repayment arrangements or will be going through debt recovery. If there are still any funds left there by June next year (current expected end of the process), it should be used up in the last distribution to investors covering some of the loss.
Total Money on loan = £3,462,025 (~ -1.56m from last month)
Total Number of borrowers = 35 (-9 from last month)
Expected default rate = 15.9% of the outstanding amount
Roughly 20% (-10% from last month) of loan amount outstanding.
Interesting that they returned 86% of the loan amount. So probably the 6% is coming from the provision fund money.
If I'm understanding the stats correctly, the Expected Lifetime Bad Debt Rate for 2020 YTD is 8.39% and it looks like we've already had 6% from the provision fund so full recovery is within touching distance. Interest ? Too much...