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Post by chris on Jul 11, 2015 13:05:56 GMT
Forgive my ignorance, but what other scenario were you expecting? That the funds were controlled by the borrower or that they legally belonged to lenders before loan payments fell due? You've confirmed that it was AC that decided to not inform lenders that the borrower had not made payments and that the buffer does not form part of the security. Sure, thought I already had in my first post on the subject. We messed up in not informing lenders and providing that transparency, although there wasn't a decision taken to withhold the information more that the credit monitoring team didn't assume responsibility for releasing it, and Andy H and myself are now taking personal responsibility for making sure that this doesn't happen again. That'll happen in stages starting with live publication of all buffer balances next week. Whether or not the buffer should be viewed as part of the security is a grey area and straining my own understanding when it comes to explaining clearly. The cash is legally the borrower's, although they have responsibility and ultimate liability for making sure the buffer is in place within the terms of the loan agreement, and its purpose as I understand it is to smooth any hiccups in cash flow that affects the ability of the borrower to repay. For example on a buy to let using the buffer to cover any periods where the property is without a tenant, with the borrower then refilling the buffer once a new tenant is in place. The content team are planning to document this with full input from the credit team next week, and I'll make sure it is clear and understandable by non-bankers.
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Post by Ton ⓉⓞⓃ on Jul 11, 2015 14:38:32 GMT
Or where it's a seasonal business filling up the buffer when the times are good and then "having a preplanned payment holiday" when times are quieter.
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jo
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Post by jo on Jul 11, 2015 15:17:36 GMT
I really feel AC are in danger of pandering to lenders too much on this 'independent forum' its great you listen but being so proactively involved has provoked enormous expectation and I think unrealistic ones too. We are your market and so we have a voice but I would rather you spent time on more important things than worry about interest buffers being maintained at an urgency equivalent to loan repayments. In the end you will only get fed up and make a large minimum bid/investment that cuts many users off to avoid this customer service ordeal whenever any loan goes bad and people cry for comp... Listen sensibly please and dont assume (some) lenders are right or that their demands should be a priority. ....yup, sounds about right.
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JamesFrance
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Post by JamesFrance on Jul 12, 2015 6:54:02 GMT
I quite agree. I post a lot about the failings of Bondora on their own forum, precisely because they take no notice of investors opinions in their ambitions to conquer the world of P2P.
With Assetz it is quite different and can be taken advantage of. Some of the demands in Q & A are ridiculous and even offensive.
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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 Jul 12, 2015 15:24:57 GMT
List of loans with buffers mentioned in CR, only includes loans where a contingency buffer is specified not those where interest is retained to service actual repayments * based on info available | Loan | Buffer size | Used* | Comments | | #45 | 12 months | Oct 14, Jun 15, Jul 15 | Buffer only 2 months, borrower to make up payments from buffer or default rate applied and lenders asked to vote on | | #46 | 6 months | Mar 15? | To be built over first 4 months | | #54 | 6 months | No, AC forgot | Retained at drawdown. Borrower paid before AC was reminded of buffer and could call on. | | #68 | 6 months | Yes | Retained at drawdown, used to make initial interest payments not as buffer despite CR definition. | | #74 | 6 months | No | £25k interest buffer (6 months equivalent at standard rate, 4 at default) | | #81 | 3 months | No | Retained at drawdown | | #82 | 3 months | No | Retained at drawdown | | #86 | 3 months | Yes | Retained at drawdown, used early 2015, buffer currently only 2.5 months, being replenished over subsequent months | | #110 | 3 months | No | Retained at drawdown | | #113 | 3 months | No | Retained at drawdown | | #123 | 3 months | Apr, May, Jun 15 | Retained at drawdown, buffer exhausted, default rate payable until replenished | | #136 | NA | No | Rent deposit & 50% of rents to be retained, never established as no tenants | | #157 | 3 months | No | Retained at drawdown | | #158 | 3 months | No | Retained at drawdown | | #162 | 2 months | No | Retained at drawdown | | #163 | 2 months | No | Retained at drawdown | | #166 | NA | No | 3 months buffer to be built up from profits from sales, receiving 100% until fully established |
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#66 £50k deposit to cover 6 months rent to council |
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jonno
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nil satis nisi optimum
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Post by jonno on Jul 13, 2015 13:20:48 GMT
ilmoro; I was just wondering whether the Pink Floyd lyric you've asterisked actually reads "Wondering which of the BUFFERS to blame"?
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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 Jul 13, 2015 13:29:40 GMT
ilmoro; I was just wondering whether the Pink Floyd lyric you've asterisked actually reads "Wondering which of the BUFFERS to blame"? Very prescient, the Floyd. Nothing to do with any drugs, of course. Well past the psychedelia period by then. 
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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 Jul 17, 2015 15:07:56 GMT
Big update on #123 NLCPL including comments on buffers. AH is due to email lenders about loan suspensions later today and there will be comms on buffers by 31/7.
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unmadem
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Post by unmadem on Oct 29, 2015 12:56:01 GMT
This is not so much being economical with the truth but more a case of being economical with the facts. So whilst AC seem to be quite verbose in their replies to questions that are relatively easy to answer when it comes to a situation like L**ds Commercial and other buffer problems that have come to light since, they become reticent to answer. There are probably several reasons for this and for AC as a new business, a general reluctance to reveal bad news for fear of tuning off investors. However as we all know, eventually the information will get out and then it can do more damage than having come clean at an early stage. It is then that the issues of trust, honesty, etc. tend to get banded around. All very bad for a business trying to grow. As I stated in my previous post we are committed to transparency and will be ensuring solutions are coded that give you absolutely every bit of relevant information we have. By this time next week every loan with an interest buffer will have the current value of the buffer displayed against it. chris I was very pleased by your commitment to display the current value of the buffer quickly. However this has not happened. Can this be done now please ?
There was immediately after all the buffer issues arose an improvement in the reporting of activity around buffers. However this involves us having to wade through all of the activity log records and Q&As. Having a figure displayed is obviously easier and less open to interpretation.
I also feel that the information provided through the textual comments are slipping a little again. See for example loan 45 leeds property where a user has asked what the buffer level is. There has been a reply but it doesn't actually say either in terms of cash or months coverage what the buffer level is. If it was just displayed automatically as you promised all this could be avoided.
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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 29, 2015 15:05:50 GMT
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Mike
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Post by Mike on Oct 29, 2015 15:07:00 GMT
If it was just displayed automatically as you promised all this could be avoided. [/p][/quote] I think this policy has been decided against. See recent Q&A on loan 66, where part of an answer reads "We do not publish loan buffer balances as a matter of course on our platform. In this case, the level of the buffer changes weekly and it is therefore impractical to display."
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Post by chris on Oct 29, 2015 15:21:29 GMT
As I stated in my previous post we are committed to transparency and will be ensuring solutions are coded that give you absolutely every bit of relevant information we have. By this time next week every loan with an interest buffer will have the current value of the buffer displayed against it. chris I was very pleased by your commitment to display the current value of the buffer quickly. However this has not happened. Can this be done now please ?
There was immediately after all the buffer issues arose an improvement in the reporting of activity around buffers. However this involves us having to wade through all of the activity log records and Q&As. Having a figure displayed is obviously easier and less open to interpretation.
I also feel that the information provided through the textual comments are slipping a little again. See for example loan 45 leeds property where a user has asked what the buffer level is. There has been a reply but it doesn't actually say either in terms of cash or months coverage what the buffer level is. If it was just displayed automatically as you promised all this could be avoided.
It's been coded (the display of the current buffers) so I'll have to check in with the rest of your post with the rest of the team. Will make sure it is addressed. Edit: Just seen Mike's post which would explain why it's not being used.
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mikes1531
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Post by mikes1531 on Oct 29, 2015 16:01:37 GMT
If it was just displayed automatically as you promised all this could be avoided. I think this policy has been decided against. See recent Q&A on loan 66, where part of an answer reads "We do not publish loan buffer balances as a matter of course on our platform. In this case, the level of the buffer changes weekly and it is therefore impractical to display." It's been coded (the display of the current buffers) so I'll have to check in with the rest of your post with the rest of the team. Will make sure it is addressed. Edit: Just seen Mike's post which would explain why it's not being used. , andrewholgate: This looks an awful lot like AC don't want to provide this info. The excuse they gave in the Q&A was that it was "impractical", yet you've indicated that the work required already has been coded. Surely AC have the info requested -- if they don't then we investors should be very concerned. And answers like the one given in the Q&A for Loan #45 are distinctly unhelpful. The Q was "What is the current balance in the buffer?" AC's reply didn't answer the question, just saying that the payment was less than a month's worth but not specifying the amount. So we weren't told how short the payment was at the time, yet we'll find out when the payment due tomorrow is partially paid by whatever is in the buffer. Since we're going to find out anyway, why are AC so reluctant to release this info on a timely basis? IMHO, all AC are accomplishing here -- aside from holding back info that lenders have requested -- is to generate more work for the people who have to deal with the Q&A. In checking the #45 Q&A while writing this message, I see that someone else has asked, among other things, the same question again -- "what is the current level of the buffer?
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Post by chris on Oct 29, 2015 16:08:25 GMT
I think this policy has been decided against. See recent Q&A on loan 66, where part of an answer reads "We do not publish loan buffer balances as a matter of course on our platform. In this case, the level of the buffer changes weekly and it is therefore impractical to display." It's been coded (the display of the current buffers) so I'll have to check in with the rest of your post with the rest of the team. Will make sure it is addressed. Edit: Just seen Mike's post which would explain why it's not being used. , andrewholgate: This looks an awful lot like AC don't want to provide this info. The excuse they gave in the Q&A was that it was "impractical", yet you've indicated that the work required already has been coded.Surely AC have the info requested -- if they don't then we investors should be very concerned. And answers like the one given in the Q&A for Loan #45 are distinctly unhelpful. The Q was "What is the current balance in the buffer?" AC's reply didn't answer the question, just saying that the payment was less than a month's worth but not specifying the amount. So we weren't told how short the payment was at the time, yet we'll find out when the payment due tomorrow is partially paid by whatever is in the buffer. Since we're going to find out anyway, why are AC so reluctant to release this info on a timely basis? IMHO, all AC are accomplishing here -- aside from holding back info that lenders have requested -- is to generate more work for the people who have to deal with the Q&A. In checking the #45 Q&A while writing this message, I see that someone else has asked, among other things, the same question again -- "what is the current level of the buffer? The bit in red is wrong. I coded a mechanism for the admin team to enter the figures on to the front end website, that doesn't make it practical for the admin team to have to do so. They would need to manually enter the new balance whenever it changes. I'll raise this internally as I'd like to see the figures displayed on the site but if it's not practical to do so then I'll need to figure out a different methodology.
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skippyonspeed
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Post by skippyonspeed on Oct 29, 2015 16:47:38 GMT
This is the 1st time I've viewed this thread as it has been a bit dormant until today. I was wondering as the buffers seem to be dead money legally owned by the borrowers, could an account similar to QAA be set up for the borrowers to give them a little incentive maintain their buffer........or perhaps I'm missing something (a lot have been saying that for years ) |
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