eeyore
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Post by eeyore on Jan 18, 2023 11:30:13 GMT
I guesstimate there is about £5.7m of cash in AAs versus unfunded tranche commitments of £11.3m. So there is a shortfall of circa £5.6m to go yet before we’re close to partial AA capital payouts. .... If AC wait to only pay out money in excess of the of the unfunded tranches then AA investors will be sitting on a cash pile of £11.3m doing nothing in a high inflationary environment. No doubt AC will look at ways of using this cash pile to make money for themselves, at the very least they should find a bank which pays some interest for the excess cash and PF and pass this back to the investors but no chance AC will do that. Whilst I agree with the sentiment (and the correct one to keep AC afloat), they are still paying 4% (less any fees they can get away with) on the balance held in the Access Accounts. If the income from lending the 'cash pile' to a bank is less than what they are paying the retail lenders, then there is an incentive for AC to pay out.
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bugs4me
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Post by bugs4me on Jan 18, 2023 11:39:39 GMT
I guesstimate there is about £5.7m of cash in AAs versus unfunded tranche commitments of £11.3m. So there is a shortfall of circa £5.6m to go yet before we’re close to partial AA capital payouts. Should not have to wait for the full £11.3m to be held in cash before paying out some funds as there will most certainly be money coming in from loan redemptions from good loans which can be factored in (even if it is just at 50% level) to allow a payout to start sooner rather than latter. If AC wait to only pay out money in excess of the of the unfunded tranches then AA investors will be sitting on a cash pile of £11.3m doing nothing in a high inflationary environment. No doubt AC will look at ways of using this cash pile to make money for themselves, at the very least they should find a bank which pays some interest for the excess cash and PF and pass this back to the investors but no chance AC will do that. I suspect the AA accounts are a far cheaper source of funding for AC than that guaranteed expected to the institutions. And nope, by their actions, AC long vacated their reputation with retail lenders ages ago - they don't give a damn. Very sad and I feel sorry for those locked in who maybe are in desperate need of their funds.
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alender
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Post by alender on Jan 18, 2023 11:58:07 GMT
.... If AC wait to only pay out money in excess of the of the unfunded tranches then AA investors will be sitting on a cash pile of £11.3m doing nothing in a high inflationary environment. No doubt AC will look at ways of using this cash pile to make money for themselves, at the very least they should find a bank which pays some interest for the excess cash and PF and pass this back to the investors but no chance AC will do that. Whilst I agree with the sentiment (and the correct one to keep AC afloat), they are still paying 4% (less any fees they can get away with) on the balance held in the Access Accounts. If the income from lending the 'cash pile' to a bank is less than what they are paying the retail lenders, then there is an incentive for AC to pay out. I see your point but if AC hold onto these funds unnecessarily and pay interest on them it will ultimately come from the AAs investors cash, if some funds are paid out they could increase the rate on the funds still trapped but AC don't care it is your problem now. Also as Bugs4me has said they are could well be using this as a cheap source of funds as they would have to pay far more in the open market, I would not put it passed them. At the very least retail lenders will be able to get easily in excess of the 4% in bonds or regular saver accounts with FSCS protection and in some cases have to borrow money at much higher rates.
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ilmoro
Member of DD Central
'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 Jan 23, 2023 19:33:40 GMT
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rscal
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Post by rscal on Jan 24, 2023 16:37:41 GMT
Technical point: what is the difference between a loan book 'run-off' and a 'wind-down'? Is it:
1) One appears in the official documentation on the AC platform and the other doesn't, or
2) There was no one called Bernhard Wind-Down
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Post by jevans4949 on Jan 24, 2023 17:32:27 GMT
Technical point: what is the difference between a loan book ' run-off' and a ' wind-down'? Is it: 1) One appears in the official documentation on the AC platform and the other doesn't, or 2) There was no one called Bernhard Wind-Down Run-off is what you get after heavy rain.
It's just a wind-up.
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Post by bob2010 on Feb 2, 2023 8:57:47 GMT
So they upped the 'capped rate' to 4% only then to reduce it down to 3.3% because of their additional fee even though the Q&A suggested that it was unlikely:
They've also not provided any support on how that reduction was calculated. If they were to take it from the manual lending account first, then that means those accounts would have also been reduced to 3.3%, unless I'm missing something?!
Has anyone raised a complaint?
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Post by Ace on Feb 2, 2023 9:09:42 GMT
So they upped the 'capped rate' to 4% only then to reduce it down to 3.3% because of their additional fee even though the Q&A suggested that it was unlikely: They've also not provided any support on how that reduction was calculated. If they were to take it from the manual lending account first, then that means those accounts would have also been reduced to 3.3%, unless I'm missing something?! Has anyone raised a complaint? Yes. See this thread p2pindependentforum.com/post/466504/thread.
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andy5
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Post by andy5 on Feb 2, 2023 15:40:10 GMT
Apologies if some of this is going to sound naive.
The details being discussed recently, how have people found these out? How much is from information actually sent out by the company, or just spotted when logged in, or from other sources?
The reason I ask is I get the impression the company seem to regard it as optional to tell me what is happening. I've mentioned before on here that I've got some messages and not others
So I've only just discovered they reduced the interest rate to 3.3%
My request in early November to withdraw the balance on the 30 day notice account to the Quick Access account was apparently processed on 14th January, though it's a little odd as there is no fraction of a penny left behind. Did they close the notice accounts for everybody?
What is the difference between Quick Access Account and qaa direct, and why is a transfer between these shown on 14th January, but the money is in the same place?
And most important for the time being, have they made any declarations at what rate money might come out of this account, anything on top of the trickle of interest?
I'm minded to contact them with some queries, but I get a suspicion in advance the answers might be a bit surly, or not enough people to answer the phone.
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elsee
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Retired:D
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Post by elsee on Feb 3, 2023 10:12:22 GMT
If you look at the information box above your access accounts there is a link that says something like "learn more", everything is explained there.
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dermot
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Post by dermot on Mar 1, 2023 15:53:17 GMT
Just checked my ISA QAA today and I see my net interest rate has fallen to a miserable 2.4% now.
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rscal
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Post by rscal on Mar 1, 2023 16:40:37 GMT
Just checked my ISA QAA today and I see my net interest rate has fallen to a miserable 2.4% now. One might expect the opposite since the reduction for 1st Feb (covering 15 dec - 31 Jan or 48 days) compares with this last period of 28 days in February. Remember a month's interest [4%] was earned and and month and a bit's fee [1.6mths@ 2.9%] would have to be netted off against that. You can see my puzzlement FYI my 'MLA only' fees for the two periods were
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dermot
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Post by dermot on Mar 1, 2023 17:12:24 GMT
Just checked my ISA QAA today and I see my net interest rate has fallen to a miserable 2.4% now. One might expect the opposite since the reduction for 1st Feb (covering 15 dec - 31 Jan or 48 days) compares with this last period of 28 days in February. Remember a month's interest [4%] was earned and and month and a bit's fee [1.6mths@ 2.9%] would have to be netted off against that. You can see my puzzlement FYI my 'MLA only' fees for the two periods were Well, all I can say is that I looked at the transaction for this month and it quite clearly states "01/03/2023, 15:03 Interest payment for Quick Access Account for month 2023-02 at 2.4% per annum" I'd be interested to see what you find if you look at your own IFSA QAA transactions. Last month was stated at 3.3%, previous month was 3.8% Pretty clear.
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dermot
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Post by dermot on Mar 1, 2023 17:16:21 GMT
So they upped the 'capped rate' to 4% only then to reduce it down to 3.3% because of their additional fee even though the Q&A suggested that it was unlikely: They've also not provided any support on how that reduction was calculated. If they were to take it from the manual lending account first, then that means those accounts would have also been reduced to 3.3%, unless I'm missing something?! Has anyone raised a complaint? Yes. See this thread p2pindependentforum.com/post/466504/thread. And reduced to 2.4% net this month, see my post below. I've not had any specific notification about the reduction to 2.4%
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rscal
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Post by rscal on Mar 1, 2023 18:51:22 GMT
One might expect the opposite since the reduction for 1st Feb (covering 15 dec - 31 Jan or 48 days) compares with this last period of 28 days in February. Remember a month's interest [4%] was earned and and month and a bit's fee [1.6mths@ 2.9%] would have to be netted off against that. You can see my puzzlement FYI my 'MLA only' fees for the two periods were Well, all I can say is that I looked at the transaction for this month and it quite clearly states "01/03/2023, 15:03 Interest payment for Quick Access Account for month 2023-02 at 2.4% per annum" I'd be interested to see what you find if you look at your own IFSA QAA transactions. Last month was stated at 3.3%, previous month was 3.8% Pretty clear. Just to clarify I have no AA holding, only the MLA (and some GBBA2 whose interest strangely is credited without be captured for deduction) so I used that to verify my charge remained roughly 'pro-rata'. Whatever has prompted this month's AA rate merits a comment/explainer from Law & Fair, solicitors
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