duck
Member of DD Central
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Post by duck on Apr 1, 2015 7:35:49 GMT
On checking my repayments today I noticed a change with the way the repayments for 'old' loans are being made. Until today the fees due were shown on the account statement, no longer. What this means is that the schedule of payments for the individual loans does not tie up with the account statement
For instance loan C44160574xxxx gives interest of £1.52 on the account statement but the schedule of payments says interest of £1.69 'paid' Whilst this makes no difference in the payment to me (no fee visibly deducted) we have two figures that do not tie up (and it does strange things to my automated spreadsheet!).
I assume that this has something to do with the new way 'fees' have to be dealt with (as per the zopa Email I previously posted p2pindependentforum.com/thread/2355/taxation-interest-before-deduction-lender) .... but the new tax year has not started ..... yet.
Perhaps westonkevRS would like to comment.
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jonbvn
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Post by jonbvn on Apr 1, 2015 9:51:29 GMT
On checking my repayments today I noticed a change with the way the repayments for 'old' loans are being made. Until today the fees due were shown on the account statement, no longer. What this means is that the schedule of payments for the individual loans does not tie up with the account statement
For instance loan C44160574xxxx gives interest of £1.52 on the account statement but the schedule of payments says interest of £1.69 'paid' Whilst this makes no difference in the payment to me (no fee visibly deducted) we have two figures that do not tie up (and it does strange things to my automated spreadsheet!).
I assume that this has something to do with the new way 'fees' have to be dealt with (as per the zopa Email I previously posted p2pindependentforum.com/thread/2355/taxation-interest-before-deduction-lender) .... but the new tax year has not started ..... yet.
Perhaps westonkevRS would like to comment. Thanks duck. I noticed this a few days ago but assumed it was me.
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Post by GSV3MIaC on Apr 1, 2015 16:43:28 GMT
FC have also changed their T&Cs to make fees go away (well, to move them to the borrowers' side of the fence) today. I have yet to see exactly how / if FC manage to massage their website and transaction reports to make this work (right now the gross rate is what you bid, and what shows up almost everywhere).
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Post by westonkevRS on Apr 2, 2015 12:45:11 GMT
This is linked to the issue about tax gross vs. net and to make this easier for customers to understand (i.e. no confusion about are they fees, and what rates they get). There will be an official note from RateSetter on this, our timing is just a little of and I apologise for that. @ westonkevRS |
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duck
Member of DD Central
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Post by duck on Apr 3, 2015 5:55:43 GMT
Cheers for the response westonkevRS , I certainly wasn't loosing any sleep over the matter but it is good to know that my assumption was correct.
Enjoy the break .............then keep up the good work at RS Towers! 
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Post by westonkevRS on Apr 11, 2015 20:41:11 GMT
Here's the official RateSetter blog on the change to fees, which basically confirms the tax treatment that most of us had been applying anyway (i.e. declaring the net position): www.ratesetter.com/blog/article/end_to_lender_fees" we have now changed the charging structure on the old (i.e. pre April 2014) loans as well, so that the lender does not receive the full interest and does not pay a fee and instead the borrower pays an amount of the interest equivalent to the fee directly to RateSetter. The net result of this is a zero change to the rates you receive as a lender on any pre-April 2014 loans and zero change to the amount you pay as a borrower on any pre-April 2014 loans. This change has been reflected in the lender statements and there is nothing either lenders or borrowers need to do to their accounts" @ westonkevRS |
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