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Post by ladywhitenap on Jan 24, 2015 11:17:35 GMT
I see it is payment day for the above loan today - OK it is a Saturday so maybe on Monday then.
They shocked us to the core by paying up on the day (Christmas Eve) last month after a pretty ropey record in previous months
Let hope Monday will see the "you have been paid" email dropping into our in boxes and show they have made and adhered to their new Years resolution!
Come on MMC - you can do it!
LW
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kevinkelly
Member of DD Central
Posts: 96 
Likes: 37
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Post by kevinkelly on Jan 26, 2015 18:39:31 GMT
I see it is payment day for the above loan today - OK it is a Saturday so maybe on Monday then. Or maybe it'll arrive Tuesday...
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Post by ladywhitenap on Jan 27, 2015 13:22:12 GMT
I see it is payment day for the above loan today - OK it is a Saturday so maybe on Monday then. Or maybe it'll arrive Tuesday... Or Wednesday? the day will possibly have a 'y' in it though!
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Post by dodgeydave on Jan 28, 2015 14:07:10 GMT
The Magic Mushroom company were asked to confirm the satnding order is in place , Which they have said it is . If this is the case why is the payment late.
And then we wont send in the debt collectors till the 1st of Feb.
It really gets worse each month.
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Post by nickrebuildings on Feb 4, 2015 10:52:35 GMT
All,
It's hugely frustrating for us and we would really rather the borrower communicated with us if there is a problem. Since this was posted, my colleague (also called Nick) has posted an update on the secondary market discussion page:
"I can confirm we have passed this through to our collections agent, as we did previously with the missing repayments at the end of last year.
The agent will now act on our behalf to recover the funds – while I can’t confirm if the funds came through in Nov and Dec as a direct result of this action, we are confident it was and will again prove successful
We will now have to wait for further news from the agent, or for the repayments to come through but will continue to monitor the situation closely – and try to engage with the borrower ourselves. I will update everyone in due course."
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Post by ladywhitenap on Feb 4, 2015 17:43:41 GMT
Nick I can assure you that we lenders are equally frustrated by this borrowers behaviour.
Clearly the conditions imposed on borrowers need to be tightened. Currently it seems that each time there is a payment delay, the collection agency are called in (which must cost REBS?) and sometime later the borrower pays up but next month they can do it again.
Surely the action must be made more harsh once a borrower has had a late payment.
Somehow these errant borrowers must be made to realise they can't continue to take the pi88 out of REBS and the lenders.
LW
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oldgrumpy
Member of DD Central
Posts: 5,087
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Post by oldgrumpy on Feb 4, 2015 20:31:22 GMT
I'm not in REBS. Are late fees applied when payments fail to materialise?
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Post by ladywhitenap on Feb 4, 2015 20:55:50 GMT
oldgrumpyI don't know to be honest. So far I've not seen any extra payments ending up with lenders yet. Whether REBS apply a penalty to reflect increased costs of collecting the debt I don't know. LW
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Post by nickrebuildings on Feb 5, 2015 12:49:40 GMT
This is our clause in our loan terms and conditions regarding late payment. We charge the borrower for using the recoveries agent - but clearly there is a line here whereby penalising a late-payer financially becomes counter-productive, which is why we don't send them in a day after the payment is late and would rather give them the opportunity to settle up.
Payment performance is passed to credit rating agencies, so the borrower is jeopardising its credit rating through non-payment, so there are several penalties for late payment.
11. Default Interest
11.1 If a Borrower fails to pay a sum due under this agreement on the due date for payment, the Borrower shall pay interest on such sum for the period from and including the due date up to the date of actual payment (after as well as before judgment) in accordance with this clause.
11.2 The Borrower will pay simple interest at the annual rate which is the aggregate of 8 per cent per annum and the agreed interest rate in 6.1. Interest shall be compounded monthly. The interest will be calculated retroactively for the life of the loan.
11.3 Interest under this clause shall be paid by the Borrower monthly in arrears until discharged.
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Post by ladywhitenap on Feb 5, 2015 13:40:18 GMT
This is our clause in our loan terms and conditions regarding late payment. We charge the borrower for using the recoveries agent - but clearly there is a line here whereby penalising a late-payer financially becomes counter-productive, which is why we don't send them in a day after the payment is late and would rather give them the opportunity to settle up. Payment performance is passed to credit rating agencies, so the borrower is jeopardising its credit rating through non-payment, so there are several penalties for late payment. 11. Default Interest 11.1 If a Borrower fails to pay a sum due under this agreement on the due date for payment, the Borrower shall pay interest on such sum for the period from and including the due date up to the date of actual payment (after as well as before judgment) in accordance with this clause. 11.2 The Borrower will pay simple interest at the annual rate which is the aggregate of 8 per cent per annum and the agreed interest rate in 6.1. Interest shall be compounded monthly. The interest will be calculated retroactively for the life of the loan. 11.3 Interest under this clause shall be paid by the Borrower monthly in arrears until discharged. Thanks for giving us some visibility of the rules applied to borrowers. Do the rules/procedures have a provision for any non zero portion of the default interest to be passed to lenders? LW
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Post by nickrebuildings on Feb 5, 2015 20:12:26 GMT
No - we don't pass any extra interest to lenders as a matter of policy when recovering late payments.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,426
Likes: 1,211
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Post by sqh on Feb 5, 2015 20:45:05 GMT
No - we don't pass any extra interest to lenders as a matter of policy when recovering late payments. ReBs get 8% p.a. over and above the loan interest rate, for a loan in default. That's a disincentive to chase the borrower.
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Post by dodgeydave on Feb 6, 2015 2:04:56 GMT
The Borrower confirmed the standing order was set up for the 22nd of each month. A blatant lie.
Now Rebs are paying out of there funds the collection agency. Glad you feel charitable.
This loan has been toxic from day one.
If payment is not recieved on time at any stage in the future close the loan.
It simple stop messing around.
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Post by ladywhitenap on Feb 13, 2015 17:11:58 GMT
Finally 19 days late they have paid up!
Trouble is that it is only 10days or so till the next payment - I wonder if they have sold enough mushrooms to pay on time on 24th Feb??
LW
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Post by ladywhitenap on Mar 1, 2015 17:19:36 GMT
Having been in discussion with REBS over this particular loan. It does appear to me that there are few weapons open to them.
I'm told that the extra fees charged for late payment largely get consumed by the debt collectors
The first time a borrower is late enough to trigger the debt collection process (7days AFAIK) the credit reference agencies get alerted which will impact on interest rates for future loans.
If as this borrower does, they pay up with the original amount and the penalty, then "all is well" until the next time. There is no mechanism to apply pressure until the next payment day +7 days as the borrower has complied with the rules.
I have suggested to REBS that in future, a running total of late payment days should be kept for each loan and when a pre-set threshold of say 30 late days in a 12 month period is exceeded, some further punitive measures should be taken. I have had no replies to this yet.
I've made a few suggestions both in this forum and directly to rebs an quite often the response is that they feel a tighter set of rules could well put off new borrowers. My response to this is that I'd rather see borrowers who are worried by a tight regime are just the ones I'd like to see walk on and borrow from someone else.
LW
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