crazi
Posts: 41 
Likes: 62
|
Post by crazi on Jun 12, 2015 8:23:07 GMT
********************
UPDATE AS OF 29/5/15
Although all paperwork has been completed there has been an unexpected delay in obtaining the VAT exemption certificate from HMRC. This does not affect any detail of the sale as a statement of exemption is already written into the contract. However this does mean that there will be a further small delay before completion can take place. As soon as the certificate is received the loan should be drawn down.
********************
Small delay? - we are now half a month on and still nothing. Funds tied up and earning nothing. Surely if the borrower called for funds then he/she should be responsible for starting to pay interest from the agreed target date. If their lawyers then drag their heels with the paperwork that's their issue not the lenders. This whole process needs a serious re-think if P2PL platforms really want to be taken seriously. Once a bank commits funds to a borrower they start charging immediately.
I emailed and was told that "this happens - that's why you get a high interest rate". Well I disagree - we get a higher interest rate due to the higher risk on loan - not due to poor management of the paperwork.
Thoughts?
|
|
|
|
Post by biggles on Jun 12, 2015 8:34:15 GMT
But it does say that interest is backdated to 31 March, doesn't it?
|
|
crazi
Posts: 41
Likes: 62
|
Post by crazi on Jun 12, 2015 8:43:03 GMT
No - it says: "Expected drawdown of this loan is May 29th. Interest on this loan will be paid from the drawdown date."
So the cop out is the word "expected".
If the borrow has asked for funds from an "expected" date then they must be liable to start paying interest from that date. Lenders have committed the funds. At worst even a lower holding interest of perhaps 5% on committed funds while the borrow sorts out his paperwork issues or don't ask for funds until all your paperwork is 100% signed off.
|
|
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: 1,428
Likes: 1,212
|
Post by sqh on Jun 12, 2015 8:46:03 GMT
But it does say that interest is backdated to 31 March, doesn't it? Only on the 1st charge loan. The 2nd charge loan wasn't posted until May, but at least the interest rate is higher.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Jun 12, 2015 8:55:01 GMT
********************
UPDATE AS OF 29/5/15
Although all paperwork has been completed there has been an unexpected delay in obtaining the VAT exemption certificate from HMRC. This does not affect any detail of the sale as a statement VAT exemption is already written into the contract. However this does mean that there will be a further small delay before completion can take place. As soon as the certificate is received the loan should be drawn down. ******************** Small delay? - we are now half a month on and still nothing. Funds tied up and earning nothing. Surely if the borrower called for funds then he/she should be responsible for starting to pay interest from the agreed target date. If their lawyers then drag their heels with the paperwork that's their issue not the lenders. This whole process needs a serious re-think if P2PL platforms really want to be taken seriously. Once a bank commits funds to a borrower they start charging immediately. I emailed and was told that "this happens - that's why you get a high interest rate". Well I disagree - we get a higher interest rate due to the higher risk on loan - not due to poor management of the paperwork. Thoughts? Surprised it hasnt happened more often. Just look at AC & SS and some of the delays there. Prior to AC changing its model this used to be the norm, in some cases funds were tied up for months, maybe with some compensatory interest that is in many cases still pending.
|
|
crazi
Posts: 41
Likes: 62
|
Post by crazi on Jun 12, 2015 9:04:08 GMT
But it does say that interest is backdated to 31 March, doesn't it? Only on the 1st charge loan. The 2nd charge loan wasn't posted until May, but at least the interest rate is higher. But 15% of nothing is still nothing.... ;-) Although at least my cash is earning FS a little interest while it sits in their bank account ;-)
|
|
|
|
Post by Deleted on Jun 12, 2015 9:22:14 GMT
Basically if you want to avoid this nonsense stay clear of those borrowers who seem disorganised, are taking the p@@@ or those portals who don't know how to handle property developers who will always be a bit "fly". The only way to get portals to sharpen up is to walk away from the business and leave it to people who think high interest with low investment efficiency is still high interest. Though I think when the words "Shepton Mallet" appeared in a loan we should have known it was going to be messy. I had a letter that Ms Horlick yesterday who sees her portal as offering 6.5% as a "good thing".  |
|
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: 1,428
Likes: 1,212
|
Post by sqh on Jun 12, 2015 9:53:06 GMT
Only on the 1st charge loan. The 2nd charge loan wasn't posted until May, but at least the interest rate is higher. But 15% of nothing is still nothing.... ;-) Although at least my cash is earning FS a little interest while it sits in their bank account ;-) I would recommend an e-mail to customerservices@fundingsecure. Ask them to remove your bid, because it isn't getting interest and it's well past the auction end date. They are very helpful.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
|
Post by ilmoro on Jun 12, 2015 10:39:10 GMT
Basically if you want to avoi this nonsense stay clear of those borrowers who seem disorganised, are taking the p@@@ or those portals who don't know how to handle property developers who will always be a bit "fly". The only way to get portals to sharpen up is to walk away from the business and leave it to people who think high interest with low investment efficiency is still high interest. Though I think when the words "Shepton Mallet" appeared in a loan we should have known it was going to be messy. I had a letter that Ms Horlick yesterday who sees her portal as offering 6.5% as a "good thing". And anything involving a govt agency which seem to guarentee delays. 
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Jun 30, 2015 13:04:58 GMT
Interesting to compare the responses of FundingSecure and Ablrate to comparable examples of substantially delayed completion and drawdown of a loan.
In the case of Ablrate's Containers loan, they have elected to pay lenders pre-drawdown interest at the agreed loan rate as from the date of their original bids.
With FS's Shepton Mallet 2nd Charge loan, also now over a month late, we just have the projected completion date sliding repeatedly into the future. I sent FS a message at the weekend to ask if pre-drawdown interest would now be paid on the 2nd Charge loan (as has been accruing on the original 1st Charge loan) but they appear to be ignoring it...
|
|
|
|
Post by Financial Thing on Jul 6, 2015 21:50:26 GMT
Interesting to compare the responses of FundingSecure and Ablrate to comparable examples of substantially delayed completion and drawdown of a loan. In the case of Ablrate's Containers loan, they have elected to pay lenders pre-drawdown interest at the agreed loan rate as from the date of their original bids. With FS's Shepton Mallet 2nd Charge loan, also now over a month late, we just have the projected completion date sliding repeatedly into the future. I sent FS a message at the weekend to ask if pre-drawdown interest would now be paid on the 2nd Charge loan (as has been accruing on the original 1st Charge loan) but they appear to be ignoring it... , fundingsecure's priority seems to be posting loans and getting them subscribed. Once the money is in their bank, lenders appear to be forgotten about and woe betide you if some of your loans go late or into default. Information from FS is virtually non existent. The lack of information FS provides on loans is staggering. Their ad slogan should be: "Just throw in £356k on a loan and everything little thing, gonna be alright".
|
|
|
|
Post by fundingsecure on Jul 7, 2015 17:19:23 GMT
UPDATE: 7/7/15 (Individual updates have also been posted on the loans)
We have been advised that there is a revised date for receiving the VAT exemption certificate, this is now July 10.
We therefore expect the loan to be activated within a few days of this date.
If the problem with the certificate is not resolved we will shut the loan down
If this happens:
For the primary loan: FundingSecure will pay all interest accrued up to that point (from 31/3/15)
For the secondary loan: FundingSecure will pay one month's interest to all investors
FundingSecure
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Jul 9, 2015 10:02:00 GMT
UPDATE: 7/7/15 (Individual updates have also been posted on the loans) We have been advised that there is a revised date for receiving the VAT exemption certificate, this is now July 10. We therefore expect the loan to be activated within a few days of this date. If the problem with the certificate is not resolved we will shut the loan downIf this happens: For the primary loan: FundingSecure will pay all interest accrued up to that point (from 31/3/15) For the secondary loan: FundingSecure will pay one month's interest to all investors FundingSecure Does this mean that, if the VAT exemption certificate has NOT been received by close of business tomorrow (Friday July 10th), you will shut the loan down at that point?
|
|
|
|
Post by fundingsecure on Jul 9, 2015 10:10:13 GMT
Thank you for your question. We will make a final decision by close of business on Monday. This will be posted on the loan.
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Jul 13, 2015 15:33:35 GMT
Thank you for your question. We will make a final decision by close of business on Monday. This will be posted on the loan. , can you please confirm the final decision on / outcome of this loan?
|
|
