rogerbu
Member of DD Central
Posts: 398 
Likes: 213
|
Post by rogerbu on Jun 23, 2015 8:48:11 GMT
I has a small loan match this morning. 5 Year term.
Although stated to be a 5 Year Term, I have noticed before that 48 Month term loans appear in the loan list as 5 Year loans. Ok I am used to checking for that now.
The only place to be sure is to look at the Contract - This one showed 60 months. Ok
When I looked at the Repayment Schedule, I noticed it ended 2 months early. In fact this is a 57.5 Month repayment schedule on a stated 60 month contract?
Shouldn't I expect the Repayment Terms to match the Contract Terms?
Confused
|
|
|
|
Post by nickthefool on Jun 23, 2015 9:07:45 GMT
I had a similar thing recently in the monthly market, I had a loan that according to the contract was "1 month", but actually was 21 days.
I have been loaning in the monthly market for 6 months or so, I've had early repayments before but that was the first time this had happened, where the repayment date reflected a 21 day loan from the beginning.
Of course, it's not really a problem for me as the same interest for a shorter term is generally a good thing. I'm in the process of withdrawing my Ratesetter funds anyway as most banks are offering 3-6% on current accounts/regular savers now which beats the monthly market, and I will potentially need access to most of my funds in less than a year so don't want to tie it up for longer.
|
|
|
|
Post by westonkevRS on Jun 24, 2015 5:23:15 GMT
I has a small loan match this morning. 5 Year term. Although stated to be a 5 Year Term, I have noticed before that 48 Month term loans appear in the loan list as 5 Year loans. Ok I am used to checking for that now. The only place to be sure is to look at the Contract - This one showed 60 months. Ok When I looked at the Repayment Schedule, I noticed it ended 2 months early. In fact this is a 57.5 Month repayment schedule on a stated 60 month contract? Shouldn't I expect the Repayment Terms to match the Contract Terms? Confused If you DM me (or post here as it is anonymous) the contract ID I will investigate. We only do 48 or 60 month loans with 5-YR money, so this seems an anomaly. @ westonkevRSlink.ratesetter.com/8Ls46js www.linkedin.com/profile/view?id=19236219
|
|
pikestaff
Member of DD Central
Posts: 2,136
Likes: 1,484
|
Post by pikestaff on Jun 24, 2015 6:17:24 GMT
I has a small loan match this morning. 5 Year term. Although stated to be a 5 Year Term, I have noticed before that 48 Month term loans appear in the loan list as 5 Year loans. Ok I am used to checking for that now. The only place to be sure is to look at the Contract - This one showed 60 months. Ok When I looked at the Repayment Schedule, I noticed it ended 2 months early. In fact this is a 57.5 Month repayment schedule on a stated 60 month contract? Shouldn't I expect the Repayment Terms to match the Contract Terms? Confused Did you check the contract start date? It's possible that you might have bought a second-hand contract. If the remaining term is between 48 and 60 months the contract is re-sold on the 5 year market. Not sure which market a loan is re-sold on if the remaining term is less than 48 months. Extract from RS Ts and Cs: 11.2 When you make an offer to lend you may be assigned all or part of a loan which is shorter than the term of the market you have lent through which could result in your investment being repaid early. This event can occur as a result of you being assigned all or part of a loan an existing lender has sold out of. If this happens RateSetter will reinvest the sum paid back to you in accordance with the Re-Investment settings you have selected in your Account.
11.3 When you make an offer to lend you may be assigned all or part of a loan which is longer than the market term you have lent through and you appoint the Company as your agent to enter into any transfer or assignment agreement on your behalf in order to assign the benefit of all or transfer all or part of the loan at the end of the period you have offered to lend for, however, the ability of the Company to do this will be subject to there being funds available in the RateSetter markets to replace your Loan Contract. If there are insufficient funds available in the RateSetter markets then your money will continue to be lent and will be returned to you as the borrower repays their Loan.Incidentally, if you do have a second-hand contract you will not receive the rate in the contract. You will receive the rate that you offered. If the contract pays more than your offered rate, RS keep the difference. If the contract pays less than your offered rate, the difference is (roughly speaking) funded by an exit charge on the previous lender.
|
|
