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Post by scepticalinvestor on Aug 26, 2020 16:00:03 GMT
aju Apologies if this is a stupid question, but is a 'Payment Holiday' the same as 'Breathing Space'?
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aju
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Post by aju on Aug 26, 2020 16:13:05 GMT
aju Apologies if this is a stupid question, but is a 'Payment Holiday' the same as 'Breathing Space'? Well its not my place to answer for Ratesetter as such and the short answer is I don't know. That said I'd suggest from their comments that they are giving the borrower a holiday as such and it seems the PF covers this up to a certain date I guess then the borrower will have to agree to pay it back either all at once or make a deal for it to recover their position. Not personally needing a payment holiday/breathing space/forbearance myself I would not know the connection. Others may feel they can chip in. In my interpretation they are in temporary default covered by the PF and if they don't pay it back under a secondary agreement, yet to be agreed, then they will be in default. Sorry I can't elaborate further, you could look at Martin Lewis version of all this to see if there is a correlation I suspect there is. I notice there is a question in the link from the "RS Stabilisation period" message at the top of all pages - i think But I wonder if that's just the same as what the RS person said.
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Greenwood2
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Post by Greenwood2 on Aug 26, 2020 19:37:19 GMT
I assume no one has as yet asked RS if this information is available if at all and as it was of interest to me too I've cobbled an email together and asked them if this info is available and how it shows if at all. I suspect they will just suggest that these type of things are covered by the PF in some way but we'll see what the response might be. (I'll post it if I think its useful but I won't hold my breath) <Irrelevant item Snipped> So I have had a response today from RS, see what you think... I asked if it was ok to post here and they added a further comment as follows. for the record I only agreed to redact the names. As I said see what you think! Seems like nothing they hadn't already said or we hadn't already deduced. Nothing new, or what did I miss?
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aju
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Post by aju on Aug 26, 2020 19:47:53 GMT
So I have had a response today from RS, see what you think... I asked if it was ok to post here and they added a further comment as follows. for the record I only agreed to redact the names. As I said see what you think! Seems like nothing they hadn't already said or we hadn't already deduced. Nothing new, or what did I miss? I can't disagree with that sentiment but at least it came from the horses mouth so to speak. 
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Post by saintpeter on Aug 26, 2020 21:20:07 GMT
As far as I understand, if a loan defaults then you get the payment in full from the PF, even if there are many months left to run and the PF chases the loan. This has happened to a few of my loans although recently I noticed that loans that say they have defaulted have not paid out immediately. Perhaps they pay out on the next payment date due? Does anyone know if defaults still prompt an immediately full payment from the PF?
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Post by Ace on Aug 26, 2020 21:24:07 GMT
As far as I understand, if a loan defaults then you get the payment in full from the PF, even if there are many months left to run and the PF chases the loan. This has happened to a few of my loans although recently I noticed that loans that say they have defaulted have not paid out immediately. Perhaps they pay out on the next payment date due? Does anyone know if defaults still prompt an immediately full payment from the PF? Perhaps the PF is now empty and they have to wait for new payments to arrive 😱
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Aug 26, 2020 22:58:40 GMT
As far as I understand, if a loan defaults then you get the payment in full from the PF, even if there are many months left to run and the PF chases the loan. This has happened to a few of my loans although recently I noticed that loans that say they have defaulted have not paid out immediately. Perhaps they pay out on the next payment date due? Does anyone know if defaults still prompt an immediately full payment from the PF? It takes time for the fund to kick in. you will be fine.
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Post by Deleted on Aug 27, 2020 7:53:57 GMT
As far as I understand, if a loan defaults then you get the payment in full from the PF, even if there are many months left to run and the PF chases the loan. This has happened to a few of my loans although recently I noticed that loans that say they have defaulted have not paid out immediately. Perhaps they pay out on the next payment date due? Does anyone know if defaults still prompt an immediately full payment from the PF? My experience is that they no longer do - something which I've raised with RS.
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ceejay
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Post by ceejay on Aug 27, 2020 8:23:17 GMT
As far as I understand, if a loan defaults then you get the payment in full from the PF, even if there are many months left to run and the PF chases the loan. This has happened to a few of my loans although recently I noticed that loans that say they have defaulted have not paid out immediately. Perhaps they pay out on the next payment date due? Does anyone know if defaults still prompt an immediately full payment from the PF? My experience is that they no longer do - something which I've raised with RS. Not all defaults are equal. Loans will often go into a technical default - in which case they have to be marked as such by RS - while there is still every reason to expect that they will be repaid more or less properly, so that the PF has no need to be invoked. Witness the examples (I have one) of 1 Year loans which are marked as "Default" even though no payment has yet been missed (because its a 1Y bullet).
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robski
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Post by robski on Aug 27, 2020 8:32:54 GMT
As far as I understand, if a loan defaults then you get the payment in full from the PF, even if there are many months left to run and the PF chases the loan. This has happened to a few of my loans although recently I noticed that loans that say they have defaulted have not paid out immediately. Perhaps they pay out on the next payment date due? Does anyone know if defaults still prompt an immediately full payment from the PF? Perhaps the PF is now empty and they have to wait for new payments to arrive 😱 Unlikely, because if that was the case I fully expect RS to announce a further interest haircut, well in advance of that happening This months (well July really) numbers we should get any time and they will be interesting for sure
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