mikes1531
Member of DD Central
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Post by mikes1531 on Jan 9, 2015 21:41:04 GMT
Watch out when it comes to fees that are a percentage of capital. Consider what happens to mature loans where most of the repayments are capital. Even a small fee can exceed the value of remaining interest payments and require a capital loss to sell. Are you suggesting that in some cases the exit fees are a percentage of original capital rather than outstanding capital? That would be rather penal for older repayment loans. I've never come across fees like that -- and hope I never do!
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james
Posts: 2,205
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Post by james on Jan 10, 2015 0:45:02 GMT
I don't know of one where it's original capital. I'm thinking of Bondora where seller and buyer are each charged 1.5% of the sale price. Given the heavy capital repayments towards the end of a loan term 3% of the sale price can be more than the remaining interest to be paid if the sale price is at the value of the outstanding capital.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323 
Likes: 897
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Post by JamesFrance on Jan 10, 2015 8:05:00 GMT
Thincats has a minimum £25 fee, so extremely expensive for smaller loans when many repayments have been received.
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niceguy37
Member of DD Central
Posts: 504
Likes: 254
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Post by niceguy37 on Feb 3, 2015 12:22:23 GMT
I found RS one of the worst, having invested early on at high rates of 7-8.5%, and I've not long to run on these loans, so the claw-back of interest will be very harsh. Eg I lose the difference between the 7.5% I've been getting for 2.5 years and the 5 % paid now, so it's punitive. And why I'm running down my RS investments.
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Post by chris on Feb 3, 2015 12:38:20 GMT
my GEIA has not sold as single piece of shrapnel in three weeks. GEIA sales have been heavily revised today to aid sell through. Still requires demand but exit if you need it should now be swift and free.
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