niceguy37
Member of DD Central
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Post by niceguy37 on Sept 24, 2015 15:59:47 GMT
A newbie question, if I may, so apologies if this is answered elsewhere:
I placed pre-funding orders of £100 each of 3 loans, leaving £100 in my account. I see, happily, that all three loans appear to have drawdown. I was expecting an email for at least two of the loans when they drew down, asking me to pay in the £200 shortfall but haven't received anything.
Are we supposed to log in daily to check our account deficit, or can I expect an email in normal circumstances if I'm in BACS deficit?
I do note that on my Transaction Listing, my single £100 deposit appears 3 times, so that might explain why I never got an email.
How long do you get to fund a BACS deficit?
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SteveT
Member of DD Central
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Post by SteveT on Sept 24, 2015 16:20:11 GMT
When a pre-funded loan launches and you're allocated more than the value of any cash already in your account, SS send you an email to flag that you now have a funding deficit. You are then asked to send funds to cover this within 24 hours.
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ilmoro
Member of DD Central
'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 Sept 24, 2015 16:27:30 GMT
A newbie question, if I may, so apologies if this is answered elsewhere: I placed pre-funding orders of £100 each of 3 loans, leaving £100 in my account. I see, happily, that all three loans appear to have drawdown. I was expecting an email for at least two of the loans when they drew down, asking me to pay in the £200 shortfall but haven't received anything. Are we supposed to log in daily to check our account deficit, or can I expect an email in normal circumstances if I'm in BACS deficit? I do note that on my Transaction Listing, my single £100 deposit appears 3 times, so that might explain why I never got an email. How long do you get to fund a BACS deficit? You should have recd 2 emails, 1 per loan not covered by account balance, to say BACS deficit created. Each of these will appear in your transactions as a deposit. 48hrs officially though not necessarily enforced.
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ramblin rose
Member of DD Central
“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Sept 24, 2015 16:39:43 GMT
A newbie question, if I may, so apologies if this is answered elsewhere: I placed pre-funding orders of £100 each of 3 loans, leaving £100 in my account. I see, happily, that all three loans appear to have drawdown. I was expecting an email for at least two of the loans when they drew down, asking me to pay in the £200 shortfall but haven't received anything. Are we supposed to log in daily to check our account deficit, or can I expect an email in normal circumstances if I'm in BACS deficit? I do note that on my Transaction Listing, my single £100 deposit appears 3 times, so that might explain why I never got an email. How long do you get to fund a BACS deficit? Drawdown is nothing to do with when you get allocated the loan on SS, unlike AC, which may be confusing you. You receive your allocation when the loan goes live on the site. If you had funds in the account they are used, and if there's any shortfall SS create a BACS deficit to cover it. Whether you create the BACS deficit yourself by doing the first step of a deposit process, or SS create is as a result of your pre-fund allocation exceeding your account funds (effectively doing step one of the deposit process automatically for you) you are expected to transfer the money to cover it within 24 to 48 hours. Or, alternatively, you sell an amount of your loan holdings equal to or greater than the BACS deficit, and then you are given the option to use the proceeds to clear it. Edit: The importance of the drawdown date is that only after drawdown will your accrued interest on a loan start to get paid each month end. Non-drawn loans, whilst accruing interest, don't pay out yet.
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mikes1531
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Post by mikes1531 on Sept 24, 2015 20:43:59 GMT
The importance of the drawdown date is that only after drawdown will your accrued interest on a loan start to get paid each month end. Non-drawn loans, whilst accruing interest, don't pay out yet. I think there's one more difference -- and I think it's an advantage -- of loans that haven't drawn down yet. The risk of loss ought to be lower, because the money should be sitting in SS's Client Account rather than being in the hands of the borrower. The Client Account ought to be FSCS protected, though if the lender has other accounts with the same institution as the SS Client Account then the £85k maximum FSCS protection could limit the lender's cover.
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paulg
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Post by paulg on Sept 24, 2015 21:19:41 GMT
ramblin rose said: "The importance of the drawdown date is that only after drawdown will your accrued interest on a loan start to get paid each month end. Non-drawn loans, whilst accruing interest, don't pay out yet." I know that certainly was the case but - although there has been no statement from savingstream on this - they have been paying interest on loans that have not drawndown for the past two months. I guess that as they are no longer offering the option of up-front interest and they guarantee to pay interest on invested deposits even if the loans ultimately don't complete, it makes no difference to them and simplifies the end-of-month interest calculations.
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