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Post by df on Dec 1, 2022 22:02:11 GMT
Exactly right, but if AC had a backup source of capital (i.e. a revolving credit facility from a third party) that would be substituted for the retail lenders at times of need. That would require AC to obtain commercial credit for itself at a lower rate than it charges the borrowers (possibly this is a problem but I don't know). It must be possible because platforms like Landbay and Funding Circle followed this mixed model and eventually dropped retail lending completely. Which makes today's P2P Finance News article very interesting: p2pfinancenews.co.uk/2022/12/01/assetz-chief-institutions-will-drive-us-towards-2bn-of-lending/Stuart claims institutional investors will drive AC to their next £billion of lending, and that the AA have been "a very modest part of our overall funding sources for the last few years". He says, “We have already agreed successfully partnerships with institutions like Aros Kapital and Aeon Investments this year, and are continuing to see good demand from new institutional partners for our lending. We expect more announcements shortly and institutional partners will continue to play a key role in driving us towards our second billion of lending.” So presumably this last claim is not yet significant or certain enough to follow the route outlined in my post, or there is some contractual reason they can't just allow AA investors to withdraw and use these institutional funds to cover the existing loan commitments. Surely they could sort this out, or are they trying to soft close retail investment after all?I think AAs will join Great/Green/Property scrapyard, just a matter of time. Not sure about completely closing retail investment, MLA seems to be working ok for AC and underwriters could probably fill the gap.
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Post by nooneere on Dec 1, 2022 22:36:23 GMT
Perhaps the institutions would be willing to lend on the higher paying AA loans but not the many lower paying ones. If AC allowed that there may not be sufficient income to fund the PFs. They're already poorly funded for the capital they need to protect. Did you watch the Financial Thing livestream tonight www.youtube.com/watch?v=tIviQaaQhrg ? Assetz Capital Freeze at 16:43 min, some critical comments by Laurence's standards. Didn't hear you mentioned tonight though Ace
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Post by Ace on Dec 1, 2022 22:52:36 GMT
Perhaps the institutions would be willing to lend on the higher paying AA loans but not the many lower paying ones. If AC allowed that there may not be sufficient income to fund the PFs. They're already poorly funded for the capital they need to protect. Did you watch the Financial Thing livestream tonight www.youtube.com/watch?v=tIviQaaQhrg ? Assetz Capital Freeze at 16:43 min, some critical comments by Laurence's standards. Didn't hear you mentioned tonight though Ace I did watch, but I was also watching the football at the same time so might have missed some points. I did get the impression that he was cooling further on AC.
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Post by honeybadger on Dec 2, 2022 7:31:29 GMT
My interest is set to withdraw to cash account on Assetz, but instead its not happening and it's being re-invested - that's not right is it? Can they change that setting in the T +C's as well?
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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 Dec 2, 2022 7:41:05 GMT
My interest is set to withdraw to cash account on Assetz, but instead its not happening and it's being re-invested - that's not right is it? Can they change that setting in the T +C's as well? Unlikely, they would almost certainly lose any complaint if they arbitrarily changed a customer setting without notification. Mine's still being sent to the MLA as set.
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eeyore
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Post by eeyore on Dec 2, 2022 8:29:05 GMT
My interest is set to withdraw to cash account on Assetz, but instead its not happening and it's being re-invested - that's not right is it? Can they change that setting in the T +C's as well? My QAA account is also set to withdraw monthly interest to my cash account - it worked yesterday (1st December) when the funds were transferred into the cash account and were successfully withdrawn and credited in my bank account.
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dave2
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Post by dave2 on Dec 2, 2022 10:21:24 GMT
My interest is set to withdraw to cash account on Assetz, but instead its not happening and it's being re-invested - that's not right is it? Can they change that setting in the T +C's as well? Unlikely, they would almost certainly lose any complaint if they arbitrarily changed a customer setting without notification. Mine's still being sent to the MLA as set. Working fine for me now that I have changed to withdraw to cash. Check the settings on each of your access accounts if you have more than one.
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michaelc
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Post by michaelc on Dec 2, 2022 18:21:52 GMT
My interest is set to withdraw to cash account on Assetz, but instead its not happening and it's being re-invested - that's not right is it? Can they change that setting in the T +C's as well? Unlikely, they would almost certainly lose any complaint if they arbitrarily changed a customer setting without notification. Mine's still being sent to the MLA as set. Not learned any lessons then ?
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Mike
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Post by Mike on Jan 10, 2023 15:16:35 GMT
Also look at VPC Specialty Lending Investments, yield almost 10%, discount 18%, been going for 10 years with no problems or bad history unlike AC with it's failed accounts, no Hokey Cokey lock ins/outs. This is not advice just my opinion on some alternatives that I follow, so if interested DYOR. Planning to wind-down otp.investis.com/clients/uk/vpc_plc/rns/regulatory-story.aspx?cid=1083&newsid=1655214Shame as it has served me quite well over the years. I have to be honest I don't really know what it means for a PLC to "wind-down" like that: an oppertunity to buy (given discount to NAV) or a chance to sell before getting trapped in another wind-down that reveals a closet-full of skeletons?
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Post by df on Feb 16, 2023 21:13:17 GMT
Looking at my interest graph postimg.cc/vcJJYzCd . I've never been so close to 0% in the middle of month before. The fee I now owe to AC is going down so it looks like the fee on invested capital is going to cancel most or all of my interest for this month. My MLA transactions show unusually small repayments and a lot of "Claimed Lender Fees" at £0.000000000.
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Post by turton on Feb 17, 2023 10:51:16 GMT
Much the same for me, I cant see myself getting any actual interest this month unless one of the long term non payers coughs up.
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tt
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Post by tt on Feb 17, 2023 20:42:30 GMT
Same here, but I note that my "Accrued Interest" has also risen to new heights. If it had stayed around its normal level, I would have almost paid off the fee by now. I don't know whether this is borrowers suddenly becoming delinquent in their repayments or AC being slower in processing them. Normally Accrued Interest has fallen quickly at the beginning of each week.
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trium
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Post by trium on Feb 21, 2023 4:15:14 GMT
I normally get around £130 - £150 a month in interest. This month I have £20 from the AAs and that's it. All of my MLA interest to date has been stolen by AC and I still owe £8.54. I have just one week to pay that off and make a bit for myself.
I am astonished that they can get away with this. It wasn't me who decided to run down and I do not have the option to take my money elsewhere. Scandalous.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Feb 21, 2023 9:41:04 GMT
I normally get around £130 - £150 a month in interest. This month I have £20 from the AAs and that's it. All of my MLA interest to date has been stolen by AC and I still owe £8.54. I have just one week to pay that off and make a bit for myself. I am astonished that they can get away with this. It wasn't me who decided to run down and I do not have the option to take my money elsewhere. Scandalous. I don't think AC are using your interest to run down the business. The cost of running down the loan book is covered by the borrower monthly payments, these haven't changed and there is no extra cost. Your fees are being used to fund ongoing development loans, because they don't enough new money to cover these loan contracts. Note that the fees start to fall after 6 months as the number of ongoing developments that need funding reduces. I believe you should claim a part of these ongoing developments and recover your fees when the developments are completed and sold.
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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 Feb 21, 2023 11:01:38 GMT
I normally get around £130 - £150 a month in interest. This month I have £20 from the AAs and that's it. All of my MLA interest to date has been stolen by AC and I still owe £8.54. I have just one week to pay that off and make a bit for myself. I am astonished that they can get away with this. It wasn't me who decided to run down and I do not have the option to take my money elsewhere. Scandalous. I don't think AC are using your interest to run down the business. The cost of running down the loan book is covered by the borrower monthly payments, these haven't changed and there is no extra cost. Your fees are being used to fund ongoing development loans, because they don't enough new money to cover these loan contracts. Note that the fees start to fall after 6 months as the number of ongoing developments that need funding reduces. I believe you should claim a part of these ongoing developments and recover your fees when the developments are completed and sold. The second point just isnt supported by the evidence. The money to fund development tranches comes from the AA, hence the current lock-in of repayments. Every time a tranche draws down the AA holding in the loan increases by that amount ... you can see the pro-rata increase in an individual lender holding in an AA account. The best example is #1626. The AA held none of this loan after initial allocations as it was all released and picked up by MLA investors. After the next tranche of c£40,000 drawdown last week, the AA now holds c£40,000 so has funded the full tranche. Free cash in the AA drops at the same time. On the first point, like you I struggle to see where extra costs arise, but then Ive struggled to see where extra costs arrive for extensions!
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