p2pfan
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Post by p2pfan on Jul 5, 2021 11:56:04 GMT
In today's P2P Finance News, Assetz Capital are going out of their way to emphasise how lenient they have been towards borrowers' payments and how that modus operandi will continue. The article is entitled "Forbearance forever" and begins with the words "Assetz Capital will adopt a more flexible approach to forbearance schemes". It is here. I fully appreciate that they had to show understanding towards borrowers last year because of the pandemic, but for them to pay for an article (this is "promoted content") to emphasise how carefree they are about borrowers giving back the money they have borrowed is shameful and sends the wrong message when they have such a high ratio of defaulted and overdue loans. AC's last marketing campaign, at the end of June, was about their "summer rate reduction" of 0.45% of their loans until 31 July, which obviously will mean even lower rates for lenders. It'd be a delight if P2P Finance News for once featured an article from AC about the steps they have taken to prioritise the needs of retail lenders, but we all know how much AC hates retail lenders. And in case anyone is wondering why I'm still invested into AC, well, in the last month I've loaned more into LoanPad in the last month alone than I have done AC in the last few years combined. |
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ilmoro
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'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 Jul 5, 2021 12:35:46 GMT
In today's P2P Finance News, Assetz Capital are going out of their way to emphasise how lenient they have been towards borrowers' payments and how that modus operandi will continue. The article is entitled "Forbearance forever" and begins with the words "Assetz Capital will adopt a more flexible approach to forbearance schemes". It is here. I fully appreciate that they had to show understanding towards borrowers last year because of the pandemic, but for them to pay for an article (this is "promoted content") to emphasise how carefree they are about borrowers giving back the money they have borrowed is shameful and sends the wrong message when they have such a high ratio of defaulted and overdue loans. AC's last marketing campaign, at the end of June, was about their "summer rate reduction" of 0.45% of their loans until 31 July, which obviously will mean even lower rates for lenders. It'd be a delight if P2P Finance News for once featured an article from AC about the steps they have taken to prioritise the needs of retail lenders, but we all know how much AC hates retail lenders. And in case anyone is wondering why I'm still invested into AC, well, in the last month I've loaned more into LoanPad in the last month alone than I have done AC in the last few years combined. I dont see the article saying anything that reflects the headline. There seems very little new in AC's approach, they have always offered forbearance to borrowers where required, often sanctioned by lender vote. The difference for Covid is that it was blanket forbearance rather than case specific. Remember they are required to treat borrowers fairly. So what the article is actually saying is a move back to normal ie 'a more flexible approach' rather than the automatic forbearance. The most interesting thing is the change in their credit procedures to take more account of long term viability of borrowers. You are of course aware that Loanpad also provides forbearance when required (extra tranches on loans to cover interest for extension)
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ton27
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Post by ton27 on Jul 7, 2021 11:25:26 GMT
Slightly off topic, I realise, but it is not ACs Forbearance which is annoying but their abysmal approach when loans go wrong. Very often the case presented for a "Lender Vote" is biased towards agreeing with what AC would prefer and in many cases any action is too late and gives the lenders a choice of bad or worse. What compounds the matter is AC have often charged "Monitoring and Arrangement" fees which (take precedence over the Lenders in recovery situations) for seemingly doing very little "active" monitoring.
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Post by overthehill on Jul 7, 2021 11:42:35 GMT
Slightly off topic, I realise, but it is not ACs Forbearance which is annoying but their abysmal approach when loans go wrong. Very often the case presented for a "Lender Vote" is biased towards agreeing with what AC would prefer and in many cases any action is too late and gives the lenders a choice of bad or worse. What compounds the matter is AC have often charged "Monitoring and Arrangement" fees which (take precedence over the Lenders in recovery situations) for seemingly doing very little "active" monitoring.
I highlighted this before, AC's charges for stressed loans are eye-watering for borrowers and eye-opening for lenders. I see it as a revenue stream with its inherent conflicts of interest, AC takes the lion's share and the lenders inherit more risk and a higher LTV. Don't like it so I've been reducing, it must be a consideration for the lowest risk rated borrowers even if they don't expect their loan to be in that position. That means the ratio of poorer quality borrowers goes up.
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shimself
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Post by shimself on Jul 14, 2021 15:23:37 GMT
Years ago now I waged war on AC (here mainly) because of their refusal to impose the enhanced rate of interest if a borrower was late (which was in OUR T&Cs, let alone in the agreement signed by the borrower, and in neither was labelled as discretionary). I think I wore them down somewhat.
But praise where it's due, they do seem to keep in contact with borrowers, I don't have any numbers but I think that their default rate is amongst the best of
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Mikeme
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Post by Mikeme on Jul 14, 2021 16:04:05 GMT
I'm not a great believer in punitive rates unless one is sure that the borrower is just being an a**e. For me forbearance is often the right way to go being sure that the lenders are not being put into a worse position. So if with forbearance capital is returned and a lower of even no interest is received thats better than a capital loss and additional interest not received. I am a simple guy and do like the way AC in general manage the borrowers. There have been exceptions I know.
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Post by df on Jul 14, 2021 20:32:50 GMT
I'm not a great believer in punitive rates unless one is sure that the borrower is just being an a**e. For me forbearance is often the right way to go being sure that the lenders are not being put into a worse position. So if with forbearance capital is returned and a lower of even no interest is received thats better than a capital loss and additional interest not received. I am a simple guy and do like the way AC in general manage the borrowers. There have been exceptions I know.
In my personal observation across p2p platforms it is very rare when punitive rates have any impact on the outcome from defaulted loans.
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shimself
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Post by shimself on Jul 16, 2021 18:57:58 GMT
I'm not a great believer in punitive rates unless one is sure that the borrower is just being an a**e. For me forbearance is often the right way to go being sure that the lenders are not being put into a worse position. So if with forbearance capital is returned and a lower of even no interest is received thats better than a capital loss and additional interest not received. I am a simple guy and do like the way AC in general manage the borrowers. There have been exceptions I know.
Of course there's no sense in driving a borrower out of business. And some borrowers don't deserve it.
But the uplift tends to be about 2-3%. Was 7% is 9% kind of thing. Not "punitive". In most cases extending the term for 6 months or so would cover it.
It turns it into choice, pay us, or defer a supplier, or change the program so house 2 gets finished after house 1. And actually AC now often do impose the penalty.
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shimself
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Post by shimself on Jul 16, 2021 18:58:31 GMT
I'm not a great believer in punitive rates unless one is sure that the borrower is just being an a**e. For me forbearance is often the right way to go being sure that the lenders are not being put into a worse position. So if with forbearance capital is returned and a lower of even no interest is received thats better than a capital loss and additional interest not received. I am a simple guy and do like the way AC in general manage the borrowers. There have been exceptions I know.
In my personal observation across p2p platforms it is very rare when punitive rates have any impact on the outcome from defaulted loans. Late rather than defaulted
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