arbster
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Post by arbster on Sept 8, 2015 21:15:49 GMT
Succinct but accurate. For clarity you will receive interest up till the day you put the loan part up for sale, not until the day the loan part is sold. Although it is rare, if your loan part takes a day or more to sell, the interest accrued between the day you put it up, and the date it is sold, is paid into the SS Christmas party fund/provision fund/goes to charity* *delete as applicable. Thanks for expanding. I'd be interested to know which of these it is. As a side note, if SS deem a part that is up for sale to be no longer eligible for interest, surely it should also be immune from the risk of default, or anything bad happening...? My tongue is clearly in my cheek here, but I don't understand the rationale for not paying interest to the current holder of the loan part, simply because it's available for purchase on the SM. As you say, liquidity is generally such that the part(s) won't remain available for long, but given that it's also not possible to cancel a loan part sale, it does seem quite punitive.
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Investor
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Post by Investor on Sept 8, 2015 21:19:24 GMT
Not sure that you can't 'cancel' a loan part sale, although the terminology 'buy it back' is probably more appropriate assuming of course that yours is at the front of the queue. Other than that I agree but think the 'dead interest' period will only become an issue should we see a less liquid market place. On the rare occasions that I have sold something I have always sold it when there is nothing else for sale on that loan, and even then sell it in diminishing 'tranches', e.g a £1000 loan sale for me would be a series like £900, £50, £30, £10, £5, £4, £1. Can help when buyer leaves you with a few pennies.
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star dust
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Post by star dust on Sept 8, 2015 21:36:07 GMT
Succinct but accurate. For clarity you will receive interest up till the day you put the loan part up for sale, not until the day the loan part is sold. Although it is rare, if your loan part takes a day or more to sell, the interest accrued between the day you put it up, and the date it is sold, is paid into the SS Christmas party fund/provision fund/goes to charity* *delete as applicable. Thanks for expanding. I'd be interested to know which of these it is. As a side note, if SS deem a part that is up for sale to be no longer eligible for interest, surely it should also be immune from the risk of default, or anything bad happening...? My tongue is clearly in my cheek here, but I don't understand the rationale for not paying interest to the current holder of the loan part, simply because it's available for purchase on the SM. As you say, liquidity is generally such that the part(s) won't remain available for long, but given that it's also not possible to cancel a loan part sale, it does seem quite punitive. I don't regard this as punitive at all. SS pay interest as soon as we commit to the loan whether it has draw down or not, and indeed some have taken many months to drawdown but SS still honoured this. They have even continued to pay interest for a defaulted loan - although with the new structure this probably wouldn't continue. If you really wanted you might be able to re-purchase your loan part assuming there wasn't a rush to sell. This isn't a risk free instant access account, theoretically we are purchasing a loan for a stated period, if we decide we don't want this commitment any longer then why should we necessarily get the interest? All P2P platforms do things slightly differently and have pros and cons but this is one I don't have a problem with.
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adrianc
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Post by adrianc on Sept 8, 2015 22:32:44 GMT
Not sure that you can't 'cancel' a loan part sale You definitely can't. I asked customer service this question this morning, following a failed attempt to figure out how to do exactly that.
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Investor
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Post by Investor on Sept 9, 2015 7:31:11 GMT
Not sure that you can't 'cancel' a loan part sale You definitely can No Adrian. It is not possible to cancel a loan part. However selectively quoting someone else's post is possible
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arbster
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Post by arbster on Sept 9, 2015 7:38:25 GMT
I don't regard this as punitive at all. SS pay interest as soon as we commit to the loan whether it has draw down or not, and indeed some have taken many months to drawdown but SS still honoured this. They have even continued to pay interest for a defaulted loan - although with the new structure this probably wouldn't continue. If you really wanted you might be able to re-purchase your loan part assuming there wasn't a rush to sell. I guess what you're saying is that because SS are more generous in some scenarios, we should accept some illogicality elsewhere in the model? However, the two are not connected, so if they stopped paying interest before loans are drawn down they wouldn't necessarily start paying interest on loans on the SM. And if the deal flow grows significantly, the SM might start to become less liquid, making the loss of interest over multiple days a possibility, especially on the riskiest loans nearing "settlement", giving investors a double-whammy of increasing risk and no interest. No, it's not. But the risk of the investment is completely unrelated to whether you're holding it in your account, or have put it up on the SM. In both cases, the principal is your money at risk until such time as someone buys it. We definitely shouldn't get interest after we've passed the "commitment" to someone else, but until that time, I'd suggest we'd be entitled to interest.
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adrianc
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Post by adrianc on Sept 9, 2015 7:55:53 GMT
However selectively quoting someone else's post is possible No point in quoting the whole thing when you're only replying to one small section.
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awk
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Post by awk on Sept 9, 2015 8:42:39 GMT
Hello,
I'm a FC refugee seeking better returns and joined SS yesterday.
currently, very happy with SS - I even got £39 invested via the prefunding option and managed to buy some older loans.
hopefully, this is the correct thread to ask some very basic questions:
1) As prompted, I immediately transferred my initial funds yesterday lunchtime. How do I know that they arrived OK ? Does the deficit just disappear sometime today ?
2) How do I know when one of my loans gets repaid (and I need to reinvest). Do I get an email (FC don't tell you anything, so you have to keep looking).
many thanks
Andy
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registerme
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Post by registerme on Sept 9, 2015 8:44:28 GMT
Hello, I'm a FC refugee seeking better returns and joined SS yesterday. currently, very happy with SS - I even got £39 invested via the prefunding option and managed to buy some older loans. hopefully, this is the correct thread to ask some very basic questions: 1) As prompted, I immediately transferred my initial funds yesterday lunchtime. How do I know that they arrived OK ? Does the deficit just disappear sometime today ? 2) How do I know when one of my loans gets repaid (and I need to reinvest). Do I get an email (FC don't tell you anything, so you have to keep looking). many thanks Andy 1. It should do, but it may take a day or two. An email to SS will normally resolve it. 2. We get told when loans are repaid in the general updates sent out (and specific emails when specific loans are repaid?), plus the funds should appear in your investable funds balance (whatever it's actually called).
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star dust
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Post by star dust on Sept 9, 2015 8:45:36 GMT
This thread seems to be getting a bit 'grumpy', but I thought I'd do a bit of selective posting myself.  . I guess what you're saying is that because SS are more generous in some scenarios, we should accept some illogicality elsewhere in the model? <snip> but until that time, I'd suggest we'd be entitled to interest. I don't think I claimed it was "logical", but I certainly don't think there is any "entitlement" involved. It's the SS model, they could charge fees for sales, or not pay interest before draw-down, they could vary interest rates, or they could pay interest at the end of term instead of monthly ( as they did for the boats), all I'm saying is I'm not that bothered by it all things considered, it's not "punitive" in my view and it wouldn't be something I'd have at the top of my list of priorities for changes to SS. |
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merlin
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Post by merlin on Sept 9, 2015 9:04:35 GMT
My experience of the new/revised system is satisfactory. I certainly think it is much fairer all round to those wishing to invest. The stats provided by SS for the last sale I found very informative and gave some impression of the level of over subscription that currently pertains. All very healthy but a bit of a pain if you have a lot to invest/reinvest.
Still waiting for a payday on the loans that where to have finished last Friday! Would be nice to know what is happening with these?
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arbster
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Post by arbster on Sept 9, 2015 9:05:55 GMT
...it wouldn't be something I'd have at the top of my list of priorities for changes to SS. Agree with this... 
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jonah
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Post by jonah on Sept 9, 2015 9:33:17 GMT
Hello, I'm a FC refugee seeking better returns and joined SS yesterday. <snip> 1) As prompted, I immediately transferred my initial funds yesterday lunchtime. How do I know that they arrived OK ? Does the deficit just disappear sometime today ? many thanks Andy Welcome! i did a payment from my bank account at 4:35ish yesterday, by the time of typing my deficit is back to zero. Assuming your numbers match up exactly you shouldn't have to chase SS... That's only generally needed if there is a mismatch somewhere. SS don't tell you via email that the deficit is gone though, so worth checking your dashboard the day after a transfer to make sure all is well.
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SteveT
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Post by SteveT on Sept 9, 2015 9:50:38 GMT
Hello, I'm a FC refugee seeking better returns and joined SS yesterday. <snip> 1) As prompted, I immediately transferred my initial funds yesterday lunchtime. How do I know that they arrived OK ? Does the deficit just disappear sometime today ? many thanks Andy Welcome! i did a payment from my bank account at 4:35ish yesterday, by the time of typing my deficit is back to zero. Assuming your numbers match up exactly you shouldn't have to chase SS... That's only generally needed if there is a mismatch somewhere. SS don't tell you via email that the deficit is gone though, so worth checking your dashboard the day after a transfer to make sure all is well. I actually received a "Deposit Confirmation" email this morning, which I've not had before, but I assume that was down to my Faster Payments transfer being for a different sum versus the "created" BACS deficit, the balance being made up by a subsequent loan part sale.
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awk
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Post by awk on Sept 9, 2015 9:56:04 GMT
Thanks Jonah,
just looked and and back to zero !
so, another Q if I may;
- is the reference number they give you unique to that specific payment (and you have to change the detail each time), or is it your own reference (and the bank details stay the same)?
many thanks
Andy
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