blueclio
Take Care Everyone!
Posts: 10
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Post by blueclio on Sept 23, 2020 12:22:15 GMT
A Lender Vote has been issued for a Borrower requesting to extend their loan by 6 months. The text from AC says:
"The interest rate will be increased to 11.5% and will be split 9.5% to Lenders and 2% to Assetz Capital. An arrangement fee of 1% of the loan will be charged but will be applied on repayment of the loan."
The lenders will get a measly 1% over the normal interest rate, whilst AC scoops an additional 2% plus a 1% arrangement fee! I would like to help the Borrower out but, under these terms, I'm seriously considering voting NO.
What with all the controversy over lender fees, I can only say What A Blooming Liberty!
The greed of AC knows no bounds! Play fair please guys.
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Post by Ace on Sept 23, 2020 12:40:54 GMT
A Lender Vote has been issued for a Borrower requesting to extend their loan by 6 months. The text from AC says:
"The interest rate will be increased to 11.5% and will be split 9.5% to Lenders and 2% to Assetz Capital. An arrangement fee of 1% of the loan will be charged but will be applied on repayment of the loan."
The lenders will get a measly 1% over the normal interest rate, whilst AC scoops an additional 2% plus a 1% arrangement fee! I would like to help the Borrower out but, under these terms, I'm seriously considering voting NO.
What with all the controversy over lender fees, I can only say What A Blooming Liberty!
The greed of AC knows no bounds! Play fair please guys.
The current borrower rate is stated as 11.3% with the lenders receiving 8.5%. So it looks like the borrower rate is rising by 0.2% and the lender rates is rising by 1%.
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ton27
Member of DD Central
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Post by ton27 on Sept 23, 2020 12:40:59 GMT
Yes AC do seem to be making sure they maximise their returns whenever they can during this crisis - from borrowers and lenders. I also note that on Loan 601, over 6 months to 9/20 they charged Enhanced Monitoring Fees of £16k above their monthly monitoring fee of £1600 per month - this is at the same time as charging lender fees and reducing rates. The upside of all this (plus CBILS) is that they should be profitable and keep the platform running!
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Post by honda2ner on Sept 23, 2020 13:26:16 GMT
A Lender Vote has been issued for a Borrower requesting to extend their loan by 6 months. The text from AC says:
"The interest rate will be increased to 11.5% and will be split 9.5% to Lenders and 2% to Assetz Capital. An arrangement fee of 1% of the loan will be charged but will be applied on repayment of the loan."
The lenders will get a measly 1% over the normal interest rate, whilst AC scoops an additional 2% plus a 1% arrangement fee! I would like to help the Borrower out but, under these terms, I'm seriously considering voting NO.
What with all the controversy over lender fees, I can only say What A Blooming Liberty!
The greed of AC knows no bounds! Play fair please guys.
The current borrower rate is stated as 11.3% with the lenders receiving 8.5%. So it looks like the borrower rate is rising by 0.2% and the lender rates is rising by 1%. Exactly. Looks perfectly reasonable to me. I'm not fond of the 2 conditions requiring the borrower to sort refinancing quickly, the loan has performed well considering covid has ruined the business, the borrower has covered 50% of the interest on time which has earned my respect. Expecting a borrower to get refinancing on the cusp of a second lockdown is just fantasy and smells like AC setting impossible targets. I'm heavy in this one, not tempted to sell but wondering how heavy handed AC will be when the refinance doesn't happen. In other words I'm more worried about ACs actions than the borrower! The lack of the acronym CBIL in the vote text was telling, that would be a far better solution so why hasn't the borrower been shoved as hard as possible in that direction?
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ian
Posts: 342
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Post by ian on Sept 23, 2020 14:41:01 GMT
Point on the same theme - AC have introduced additional fees (borrower & lender) to enhance their margin, whilst reducing lender interest rates. The only party not suffering any loss of income is AC itself. Indeed AC potentially have the benefit of enhanced earnings from default interest / fees which is not passed on to the Access Account / GBBA investors. Will AC consider passing on some of the upside to investors ? 😀😀😀😃😂
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alanh
Posts: 556
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Post by alanh on Sept 23, 2020 15:05:59 GMT
As Stuart said on this board on Sept 7th:
"Zero redundancies. Everyone back this month after some were furloughed due to no work to do in loan origination for a bit. Cash up and profits looking good for the year."
Happy days if you work for AC. Funny how they have managed to achieve this in the middle of an economic crisis. They must have been able to cream off a whole bunch of extra income streams from somewhere.
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Post by honda2ner on Sept 23, 2020 15:22:36 GMT
I see the usual AA whingers are here posting off topic nonsense.
This topic is about a vote on a MLA loan, it has nothing to do with any other account, MLA lenders are being offered a reward with an interest uplift whilst AC sees their income cut which is very generous.
AC has always charged for arranging loans and always will, if you think that's a problem then why did you invest and why are you here?
Can we please have a sensible discussion about a MLA vote without all the juvenile idiots jumping into every thread and shouting about how they clearly had no clue what they were doing (and obviously still don't) and how it's everyone's fault but their own.
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alanh
Posts: 556
Likes: 560
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Post by alanh on Sept 23, 2020 15:46:55 GMT
I see the usual AA whingers are here posting off topic nonsense. This topic is about a vote on a MLA loan, it has nothing to do with any other account, MLA lenders are being offered a reward with an interest uplift whilst AC sees their income cut which is very generous. AC has always charged for arranging loans and always will, if you think that's a problem then why did you invest and why are you here? Can we please have a sensible discussion about a MLA vote without all the juvenile idiots jumping into every thread and shouting about how they clearly had no clue what they were doing (and obviously still don't) and how it's everyone's fault but their own. The title of the thread is "the cheek of it - AC taking liberties"......has that escaped you? And the part about AC making good profits and that cash is up for the year are comments direct from Stuart - he is the CEO if the company in case you didn't know. It might be best to read the topic of discussion before entering into a pointless rant.
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Post by Ton ⓉⓞⓃ on Sept 23, 2020 15:48:48 GMT
As Stuart said on this board on Sept 7th: "Zero redundancies. Everyone back this month after some were furloughed due to no work to do in loan origination for a bit. Cash up and profits looking good for the year."
Happy days if you work for AC. Funny how they have managed to achieve this in the middle of an economic crisis. They must have been able to cream off a whole bunch of extra income streams from somewhere.
I think I'm right in saying you missed out that some people were on half wages at AC.
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alanh
Posts: 556
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Post by alanh on Sept 23, 2020 16:03:28 GMT
As Stuart said on this board on Sept 7th: "Zero redundancies. Everyone back this month after some were furloughed due to no work to do in loan origination for a bit. Cash up and profits looking good for the year."
Happy days if you work for AC. Funny how they have managed to achieve this in the middle of an economic crisis. They must have been able to cream off a whole bunch of extra income streams from somewhere.
I think I'm right in saying you missed out that some people were on half wages at AC.
Quite possibly but going back to the point in the first post on this thread -"the greed of AC knows no bounds". Is it right that a business should be profiteering out of the current situation? If cash and profits are up then why have lenders been slapped with extra fees in addition to having their investments locked away and inaccessible for years? What justification is there for this?
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Post by honda2ner on Sept 23, 2020 16:07:32 GMT
I see the usual AA whingers are here posting off topic nonsense. This topic is about a vote on a MLA loan, it has nothing to do with any other account, MLA lenders are being offered a reward with an interest uplift whilst AC sees their income cut which is very generous. AC has always charged for arranging loans and always will, if you think that's a problem then why did you invest and why are you here? Can we please have a sensible discussion about a MLA vote without all the juvenile idiots jumping into every thread and shouting about how they clearly had no clue what they were doing (and obviously still don't) and how it's everyone's fault but their own. The title of the thread is "the cheek of it - AC taking liberties"......has that escaped you? And the part about AC making good profits and that cash is up for the year are comments direct from Stuart - he is the CEO if the company in case you didn't know. It might be best to read the topic of discussion before entering into a pointless rant. The title of the thread hadn't escaped me. The OP made an obvious mistake, one that I'm willing to forgive as on face value I can see how someone could reach that conclusion. Unfortunately people that endlessly hijack threads without even bothering to read them and post utter OT nonsense exceed my extremely low idiot threshold. What did you think Ace, Dees and myself were talking about? Even if you ignore me it is extremely foolish to ignore the likes of Ace and Dees as they are both very sensible posters with a lot more patience than I possess. Now we could continue to discuss how AC is taking liberties with this loan but sanity stops me and I'm not in the habit of making myself look stupid.
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alanh
Posts: 556
Likes: 560
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Post by alanh on Sept 23, 2020 16:21:41 GMT
The title of the thread is "the cheek of it - AC taking liberties"......has that escaped you? And the part about AC making good profits and that cash is up for the year are comments direct from Stuart - he is the CEO if the company in case you didn't know. It might be best to read the topic of discussion before entering into a pointless rant. The title of the thread hadn't escaped me. The OP made an obvious mistake, one that I'm willing to forgive as on face value I can see how someone could reach that conclusion. Unfortunately people that endlessly hijack threads without even bothering to read them and post utter OT nonsense exceed my extremely low idiot threshold. What did you think Ace, Dees and myself were talking about? Even if you ignore me it is extremely foolish to ignore the likes of Ace and Dees as they are both very sensible posters with a lot more patience than I possess. Now we could continue to discuss how AC is taking liberties with this loan but sanity stops me and I'm not in the habit of making myself look stupid. Nor do you seem to be in the habit of asking any relevant questions of the organisation that is managing your investments. Its a perfectly valid question - profits up, business supposedly doing well and yet investors now well and truly locked in and paying additional fees. Why? (this question is not directed to you in particular, for obvious reasons)
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Post by honda2ner on Sept 23, 2020 17:27:07 GMT
The title of the thread hadn't escaped me. The OP made an obvious mistake, one that I'm willing to forgive as on face value I can see how someone could reach that conclusion. Unfortunately people that endlessly hijack threads without even bothering to read them and post utter OT nonsense exceed my extremely low idiot threshold. What did you think Ace, Dees and myself were talking about? Even if you ignore me it is extremely foolish to ignore the likes of Ace and Dees as they are both very sensible posters with a lot more patience than I possess. Now we could continue to discuss how AC is taking liberties with this loan but sanity stops me and I'm not in the habit of making myself look stupid. Nor do you seem to be in the habit of asking any relevant questions of the organisation that is managing your investments. Its a perfectly valid question - profits up, business supposedly doing well and yet investors now well and truly locked in and paying additional fees. Why? (this question is not directed to you in particular, for obvious reasons) Profits up? Stuart never said that. Still, why let the truth get in the way of talking those SM discounts up. You clearly STILL haven't read this thread, I have asked questions, sensible ones that are relevant to the loan and the market in question. You haven't even managed to notice that this thread is about a loan in the MLA. Nobody is locked in the MLA and they never have been so yet more nonsense. The fact that AC is being very generous in giving lenders some of their income seems to have completely bounced off your alternative universe. Keep it up, arguing how AC is ripping lenders off when in this case they are doing the complete opposite is a level of buffoonery that our Prime Minister would be proud of.
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alanh
Posts: 556
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Post by alanh on Sept 23, 2020 17:54:22 GMT
Nor do you seem to be in the habit of asking any relevant questions of the organisation that is managing your investments. Its a perfectly valid question - profits up, business supposedly doing well and yet investors now well and truly locked in and paying additional fees. Why? (this question is not directed to you in particular, for obvious reasons) Profits up? Stuart never said that. Still, why let the truth get in the way of talking those SM discounts up. You clearly STILL haven't read this thread, I have asked questions, sensible ones that are relevant to the loan and the market in question. You haven't even managed to notice that this thread is about a loan in the MLA. Nobody is locked in the MLA and they never have been so yet more nonsense. The fact that AC is being very generous in giving lenders some of their income seems to have completely bounced off your alternative universe. Keep it up, arguing how AC is ripping lenders off when in this case they are doing the complete opposite is a level of buffoonery that our Prime Minister would be proud of. HAHAHA - AC aren't giving investors any of their investments back, let alone any of their income. They are however taking money off investors with the lender fee. There's also the small matter of £200m+ locked in on the access accounts, but no, lets not consider that. I am not saying that AC is ripping off lenders but I am asking if they are profiteering at the expense of lenders. Your answer to that would be "no they are being very generous". Others who have no access to their investments and are paying excess fees may disagree.
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Mikeme
Member of DD Central
Posts: 428
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Post by Mikeme on Sept 23, 2020 18:23:21 GMT
1.This is a borrower that should be commended. They are obviously trying to do the right thing in difficult circumstances. They paid half the interest for as long as they could. My personal opinion is that the rates should not be increased. Thats what banks do forcing honest and good businesses going down.
2. I have made this point many times our capital is more important than rates and this is best served by a successful AC. They needed yo be profitable to put the secondary market in place as one example.
3. AA rates were always target rates and changed upwards in good times. Many borrowers are facing complete ruin. We invested loan by loan in a basket of loans with some cash held for liquidity. That cash is now needed to possibly fund future tranches. If they are not funded poo of elephant proportions would hit the fan. There will be exceptions but they aren't posting here the majority of us are just talking about how much we make.
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