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Post by alanahutton on Apr 25, 2021 2:27:44 GMT
a lot of late loans inevitably end up defaulting, clearly there is an incentive for fc not to display late loans in the summary data as probable defaults as it will have negative outcome on the final total (eg on my account, it shows i have had £500 net interest, but of the amount remaining in my portfolio, there is about £750 which is late which i am expecting to default and hence my account to have actually made a loss).
but i am really more interested in whether the way they charge fees has any incentive for them to delay as long as possible classifying late loans as defaults......is anyone who is au fait with their fee structure able to shed light on this?
thanks
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scooter
Member of DD Central
Posts: 352
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Post by scooter on Apr 25, 2021 7:42:25 GMT
a lot of late loans inevitably end up defaulting, clearly there is an incentive for fc not to display late loans in the summary data as probable defaults as it will have negative outcome on the final total (eg on my account, it shows i have had £500 net interest, but of the amount remaining in my portfolio, there is about £750 which is late which i am expecting to default and hence my account to have actually made a loss).
but i am really more interested in whether the way they charge fees has any incentive for them to delay as long as possible classifying late loans as defaults......is anyone who is au fait with their fee structure able to shed light on this?
thanks
If there is a loophole they will use it. Late loans are defaulted after 3 months. There has been some flexibility over this because apparantly there is a pandemic.... Not sure about fees, they only charge when you get repayment I think so I can't see an angle there. More likely delaying default makes their industry stats look better. Of all the complaints I have about FC defaulting hasn't been one of them.... Yet.
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Post by alanahutton on Apr 25, 2021 12:16:43 GMT
if a fee is only charged on repayment then yes can't see possibility of profiting in this case - i was just a little wary as fees were continuing to rise - i guess previous bad experiences have made me suspicious on the true motivations behind any of their actions.
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