JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323 
Likes: 897
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Post by JamesFrance on Jan 12, 2016 9:56:03 GMT
As I remember it they had proposed to charge DCA collection fees to lenders, however I am hoping that they changed their minds about that after the many comments objecting to previous contracts being ignored. You can see from the blog link that there were 55 comments.
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Post by batchoy on Jan 12, 2016 9:56:58 GMT
There seems to have been considerable editing of the Bondora blog now, for instance I cannot see the many replies made when the new collection procedure was explained. However what I can find is this: www.bondora.com/blog/collection-process-overview/There is no mention of any intention to charge lenders with the DCA fees and I think we made it very clear at the time that to try to do that for existing loans would be completely unacceptable. The statement is fairly clear that DCA fees are deducted from the money that the DCA collect what is not clear if whether or not the amount to be collected from the borrower by the DCA is increased to include the DCA fees at the point of collection. In the UK collection fees are typically added to the amount to be collected from the borrower, but from experience this is not necessarily the case in every country and in some cases the Lender can only recover what is owed to them and has to bare the DCA fee for the recovery.
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carlos
I'm short Bondora and long p2p.
Posts: 104
Likes: 21
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Post by carlos on Jan 13, 2016 9:06:22 GMT
As I remember it they had proposed to charge DCA collection fees to lenders, however I am hoping that they changed their minds about that after the many comments objecting to previous contracts being ignored. You can see from the blog link that there were 55 comments. No, as answer to my direct question support explained that it seems fair to start moving some costs to lenders now. More dangerous is fact that we can't transparently see which costs where applied to which loan - UI simply doesn't show this.. So there is plenty of room to do "number magic" we are used to with Bondora.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Jan 13, 2016 9:22:22 GMT
No, as answer to my direct question support explained that it seems fair to start moving some costs to lenders now. Maybe they could do that for future loans, but surely they cannot change previous contractual arrangements whenever they feel inclined. Whenever I have queried anything with support they have pasted a lot of stuff unrelated to the question, so not much use.
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carlos
I'm short Bondora and long p2p.
Posts: 104
Likes: 21
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Post by carlos on Jan 13, 2016 10:45:55 GMT
after I complained about missing UI views for chcecking DCA fees I've got this:
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Jan 13, 2016 12:01:12 GMT
Thanks, but I did not lend through Bondora expecting new charges to be made to investors which were not explained at the time of lending.
My point is that if existing loans are passed to DCAs then if they cannot charge borrowers, Bondora should pay their fees themselves and not try to introduce retrospective charges to investors. Previously made loans should be recovered through courts and bailiffs unless lenders have agreed to this change. Nobody asked us if we were prepared to pay commission to DCAs for unproven faster recovery, this seems to be just another Bondora experiment we are apparently expected to pay for.
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james
Posts: 2,205
Likes: 955
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Post by james on Jan 13, 2016 14:27:53 GMT
As I remember it they had proposed to charge DCA collection fees to lenders, however I am hoping that they changed their minds about that after the many comments objecting to previous contracts being ignored. You can see from the blog link that there were 55 comments. No, as answer to my direct question support explained that it seems fair to start moving some costs to lenders now. More dangerous is fact that we can't transparently see which costs where applied to which loan - UI simply doesn't show this.. So there is plenty of room to do "number magic" we are used to with Bondora. For new loans that is entirely fine. For past loans it is a modification of terms that reduces the expected returns and not something that is correct to do. You might ask Bondora support in a followup question what adjustments have been made to the expected recovery rates to allow for the charges that will be deducted and which will reduce recovery rates.
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Post by rahafoorum on Jan 14, 2016 20:52:25 GMT
The old loans are sent through the same process. Initially the announcement made in sometime August said that this new process applies to loans that defaulted after June 7th or something like that.
Now though even the old ones have been sent to DCAs, quite a few from Stage 3 and even some from Stage 4 for whatever reason have been moved to the Stage 1 that means DCAs.
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