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Post by crabbyoldgit on Oct 4, 2023 15:20:35 GMT
Got to agree as long there is no cut and run administration it's not good news but heck it could be a dam site worse. Must say I find the most of the more recent loans an issue , I want to say no extension, want my money out now but the borrowers seem to have kept their end of the deal and in normal circumstances would have prob got a refinance with A C. On the more mercenary side the loan to asset ratio looks on the surface at least reasonable and forcing administration of the borrower is not a good option when they are paying as agreed and may find a way out and pay in full.
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jlend
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Post by jlend on Oct 5, 2023 7:10:35 GMT
As 0.9% is based on the outstanding loan amount, presumably that means they should be paying the target rate of 4% as all the loans will be paying more than 4.9%? Not that simple of course. Fee based on performing loans ie making interest payments. Uninvested cash in the account which doesn't earn. Considerable number of loans not paying interest so not contributing to meeting the target. Proportion likely to increase. Whether month ends on a weekend so some loans roll into following month Outstanding fees being retrospectively claimed, likely greater than the corresponding interest catch up. Only just made enough interest to meet 4% before fees last month. Be interesting to see if the advertised target rate is left so high for ever The FCA have written to p2p companies before about this and their obligations under COBS 4.7. The FCA make crystal clear their expectations IMHO. "Firms must have a reasonable basis to conclude that a target rate of return can be reasonably achieved" I suspect AC may say they have recently warned this may not happen as the loan book gradually shrinks. None the less, they haven't actually changed the target rate and it hasn't been met for many months, and it may not be "reasonable" to leave it so high. It may be a moot point, but I am not personally sure leaving the target rate advertised so high has been in the letter or spirit of what the FCA told p2p providers.
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mikes1531
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Post by mikes1531 on Oct 8, 2023 17:38:20 GMT
Be interesting to see if the advertised target rate is left so high for ever ISTM that the answer to this all depends on whether the advertised target rate is supposed to be before or after lender fees. If it's before, then AC may be able to keep advertising 4%, and then delivering less than that because of the fees, such as the 4% - 6.25% that was in effect for the past four months.
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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 Oct 8, 2023 20:50:05 GMT
Be interesting to see if the advertised target rate is left so high for ever ISTM that the answer to this all depends on whether the advertised target rate is supposed to be before or after lender fees. If it's before, then AC may be able to keep advertising 4%, and then delivering less than that because of the fees, such as the 4% - 6.25% that was in effect for the past four months. The requirement is (3) a fair description of the likely actual return, taking into account fees, default rates and taxation The question is does this still apply when the platform is no longer facilitating investments or promoting investment into a portfolio? They have advised lenders that the return is likely lower due to fees so may be compliant.
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Post by frank121 on Oct 9, 2023 22:07:43 GMT
ISTM that the answer to this all depends on whether the advertised target rate is supposed to be before or after lender fees. If it's before, then AC may be able to keep advertising 4%, and then delivering less than that because of the fees, such as the 4% - 6.25% that was in effect for the past four months. The requirement is (3) a fair description of the likely actual return, taking into account fees, default rates and taxation The question is does this still apply when the platform is no longer facilitating investments or promoting investment into a portfolio? They have advised lenders that the return is likely lower due to fees so may be compliant. I queried the lending fee situation with AC and received the response below, i guess this brings nothing new to most of you but may help someone who is not aware on how the fee is applied.
"Thank you for your email.
As you are aware, the lender fee is calculated throughout each month based on your invested funds and the interest actually received on your loans. The lender fee is deducted as a reduction to the actual interest that you receive. The fee applies to the loans that you hold that pay interest in the prior month.
For Access Accounts, lender fees are calculated on a daily basis over the course of a month and paid on the first of the following month.
For investors in the Access Accounts, the fee will be taken from the Manual Lending Account rate of the loan and the amount left will be used to seek to pay the target interest rate firstly, and any excess would be used as usual to top up the Provision Fund. If the amount of interest left net of the fee is less than the target interest rate, then that lower rate will be paid. So, it is possible over time that Access Account lenders may see a reduction in their actual interest rates paid versus target rates.
There is no lender fee applied to loans in default or recovery (as those loans would not be expected to be receiving interest from the borrower). There is also no fee applied to cash holdings.
Where a borrower misses a payment and you do not receive your interest payment that month, you will not pay fees on those loans in that month. Those fees will accrue along with your interest and only fall due to be paid once you receive your interest payment for that loan, provided there is a lender fee still in place in that month.
If you require any further assistance, please do not hesitate to contact us."
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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 Nov 1, 2023 19:56:55 GMT
No numbers this month as I was away for the first two weeks with limited access and was too busy to catch up Only a few loans redeemed this month so only a modest free cash to distribute ... Im sure they are saving a flurry of redemptions just in time for Xmas  3.4% interest paid this month |
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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 1, 2023 0:15:41 GMT
As of 30 Nov
Capital outstanding £112,406, 666
Free Cash £5.6m
Outstanding funding commitments £1.9m
Loans 224
Default 31 (includes 4 with nominal amounts)
No payment (non default) 23
Repaid 12 (£5.9m)
Interest received c420k representing approx 112% of sum needed to pay 4% before the lender fee.
EDIT - about £3m paid out this morning
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Post by oppsididitagain on Dec 1, 2023 9:02:00 GMT
But no Interest payment. as of 0900 today. Scandalous - just holding our money. They could invest the money at over 5% and at least pay us 3.5%  EDIT : They paid 4% interest this month, which is just in time to pay another X mas Bill :-). However I've also got a new £10 outstanding fee (split across Standard and ISA) Both A/c roughly have the same balance but the ISA fee is £6.5 and Standard is £3.5 in fee''s. not sure why they're not equal |
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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 Dec 1, 2023 13:34:59 GMT
But no Interest payment. as of 0900 today. Scandalous - just holding our money. They could invest the money at over 5% and at least pay us 3.5% EDIT : They paid 4% interest this month, which is just in time to pay another X mas Bill :-). However I've also got a new £10 outstanding fee (split across Standard and ISA) Both A/c roughly have the same balance but the ISA fee is £6.5 and Standard is £3.5 in fee''s. not sure why they're not equal Are the loans held the same? If not it will probably be because some loans have made catch up interest payments last month so the accrued fee is payable this month
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Post by crabbyoldgit on Dec 2, 2023 9:39:30 GMT
Ilmoro sorry to ask but the default figure you give Does it include or exclude unrecoverable loans. Thanks for your work on this I find it very useful.
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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 Dec 2, 2023 14:29:04 GMT
Ilmoro sorry to ask but the default figure you give Does it include or exclude unrecoverable loans. Thanks for your work on this I find it very useful. Includes the irrecoverable because they arent irrecoverable for AA as PF should repay the capital. (No guarantee I can count) No idea why they haven't dealt with those 4 which amount to a few quid.
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Post by jrgndk on Dec 26, 2023 14:32:25 GMT
Trying to cancel my current withdrawal order (at a 0 discount) to create one at a discount, but every time I try to cancel the one active the website tells me that I have no rights to manage this...
Any idea what can be done?
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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 Dec 26, 2023 15:03:07 GMT
Trying to cancel my current withdrawal order (at a 0 discount) to create one at a discount, but every time I try to cancel the one active the website tells me that I have no rights to manage this... Any idea what can be done? Nothing.There is no market anymore. The withdrawal order is the mandatory one created by the platform as part of the runoff & hence can't be amended.
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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 Dec 31, 2023 20:54:49 GMT
As of 31 Dec
Capital outstanding £109,737,169
Free Cash £5.2m
Outstanding funding commitments £1.77m
Loans 216
Default 31 (includes 4 with nominal amounts) - 14.2m
Arrears £9.5m
Repaid 8 (£1.7m)
Interest received c331k representing approx 90% of sum needed to pay 4% before the lender fee. Likely to be a shortfall on the interest this month, mainly due to payment phasing & delays due to festive period.
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Post by bob2010 on Jan 2, 2024 0:21:01 GMT
As of 31 Dec Capital outstanding £109,737,169 Free Cash £5.2m Outstanding funding commitments £1.77m Loans 216 Default 31 (includes 4 with nominal amounts) - 14.2m Arrears £9.5m Repaid 8 (£1.7m) Interest received c331k representing approx 90% of sum needed to pay 4% before the lender fee. Likely to be a shortfall on the interest this month, mainly due to payment phasing & delays due to festive period. If they did pay less that 4% interest on AA accounts and this was due to delays from borrowers, shouldn't this be accrued and then included as an extra interst income in the month it is finally paid? Didn't Assetz do something similar with the fees they were charging?
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