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Post by sunspot on Feb 29, 2016 14:41:57 GMT
Like most people, I tend to read the PDF documents, and only look at the OVERVIEW for a loan when it's a bit more detailed.
Today, however, I noticed that within the OVERVIEW, some loans include the phrase "INTEREST PAID MONTHLY" whereas others do not. Previously when I've seen this, I've assumed that it means WE are paid monthly, but this makes only limited sense, since interest accrues daily to us.
Therefore, I'm forced to consider the possibility that these loans have not had the interest subtracted up front as described previously in the HOW IT WORKS section.
Indeed, when I took another look at this explanation (in order to quote it here) I noticed that it's been rewritten, and no longer states that interest is deducted up front.
So, where are we exactly? Perhaps I missed the memo, but it seems to me that the rules of the game have changed while I wasn't looking.
Would someone from Saving Stream care to explain?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 29, 2016 14:56:58 GMT
Like most people, I tend to read the PDF documents, and only look at the OVERVIEW for a loan when it's a bit more detailed. Today, however, I noticed that within the OVERVIEW, some loans include the phrase "INTEREST PAID MONTHLY" whereas others do not. Previously when I've seen this, I've assumed that it means WE are paid monthly, but this makes only limited sense, since interest accrues daily to us. Therefore, I'm forced to consider the possibility that these loans have not had the interest subtracted up front as described previously in the HOW IT WORKS section. Indeed, when I took another look at this explanation (in order to quote it here) I noticed that it's been rewritten, and no longer states that interest is deducted up front. So, where are we exactly? Perhaps I missed the memo, but it seems to me that the rules of the game have changed while I wasn't looking. Would someone from Saving Stream care to explain? All loans have their interest paid upfront for the term of the loan, and held by a holding company. The term of the loan can sometimes be a tad hard to find in some overviews....
It's important to remember that the interest that SS hold has not been physically paid by the borrower, it is infact part of the loan. There was some discussion about it on here somewhere recently; I will see if I can find it......
The text you speak of is indicating that we do indeed get paid interest monthly. SS may indicate how much interest we have earned daily, but is only paid out monthly.
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Post by sunspot on Feb 29, 2016 15:30:16 GMT
I've looked through the new HOW IT WORKS explanation, and there is no longer any mention of interest being deducted up front.
And while I've learned to expect a certain haphazardness, in view of the fact that a loan backed by a personal guarantee nearly went live, I think it reasonable to seek confirmation of this policy straight from the horse's mouth.
Furthermore, if the policy really is unchanged, they need to amend the HOW IT WORKS explanation.
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Post by spareafewcoppersguv on Feb 29, 2016 15:52:23 GMT
If you are concerned and are looking for a response from the "horses mouth", it's probably best to email them. You can always then post any response here for all to see....
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Post by Deleted on Feb 29, 2016 15:52:39 GMT
I've looked through the new HOW IT WORKS explanation, and there is no longer any mention of interest being deducted up front. And while I've learned to expect a certain haphazardness, in view of the fact that a loan backed by a personal guarantee nearly went live, I think it reasonable to seek confirmation of this policy straight from the horse's mouth. Furthermore, if the policy really is unchanged, they need to amend the HOW IT WORKS explanation. Sunspot, your diligence is appreciated your discourteous attitude isn't.
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sam i am
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Post by sam i am on Feb 29, 2016 15:54:49 GMT
Like most people, I tend to read the PDF documents, and only look at the OVERVIEW for a loan when it's a bit more detailed. Today, however, I noticed that within the OVERVIEW, some loans include the phrase "INTEREST PAID MONTHLY" whereas others do not. Previously when I've seen this, I've assumed that it means WE are paid monthly, but this makes only limited sense, since interest accrues daily to us. Therefore, I'm forced to consider the possibility that these loans have not had the interest subtracted up front as described previously in the HOW IT WORKS section. Indeed, when I took another look at this explanation (in order to quote it here) I noticed that it's been rewritten, and no longer states that interest is deducted up front. So, where are we exactly? Perhaps I missed the memo, but it seems to me that the rules of the game have changed while I wasn't looking. Would someone from Saving Stream care to explain? All loans have their interest paid upfront for the term of the loan. The term of the loan can sometimes be a tad hard to find in some overviews....
The text you speak of is indicating that we do indeed get paid interest monthly. SS may indicate how much interest we have earned daily, but is only paid out monthly. Unfortunately the term of the loan stated on the platform can be different from the term for which interest has been paid. There are at least a couple of examples of this where the original loan term was stated as 12 months but then we found interest hadn't been paid for 12 months: PBL031 was a six month loan and then was renewed for a further 6 months after further interest was paid PBL046 was a six month loan and then was renewed for a further 3 months after further interest was paid I'm also very suspicious of PBL042 where we have recently been informed that interest has been paid until early April. This implies to me that there has been a further payment of interest to take us up to this time especially as the earlier update on 1 Feb said that the loan had been extended by 2 months. However the original loan term still shows 123 days remaining which would take us to early July. So my conclusion here is that this was also a six month loan up to early Feb with an extension of 2 months. ilmoro you may wish to cast your eye over this one as your update list seems to have added 2 months to the July end date to take expected repayment to 2/9/16. I suspect this isn't the case. In the past it looks like most of the loans had a default term of 12 months regardless of the term for which interest has actually been paid. I'm pleased to see that some of the newer loans have been presented with shorter terms so I'm hopeful that the stated term and the term for which interest has been paid will now coincide for any new loans. The one thing we're not seeing yet is the remaining term being extended when further interest is paid, hence the proliferation of negative terms even though the loans (as far as I'm aware) are not in default.
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ilmoro
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Post by ilmoro on Feb 29, 2016 16:13:43 GMT
Unfortunately the term of the loan stated on the platform can be different from the term for which interest has been paid. There are at least a couple of examples of this where the original loan term was stated as 12 months but then we found interest hadn't been paid for 12 months: PBL031 was a six month loan and then was renewed for a further 6 months after further interest was paid PBL046 was a six month loan and then was renewed for a further 3 months after further interest was paid I'm also very suspicious of PBL042 where we have recently been informed that interest has been paid until early April. This implies to me that there has been a further payment of interest to take us up to this time especially as the earlier update on 1 Feb said that the loan had been extended by 2 months. However the original loan term still shows 123 days remaining which would take us to early July. So my conclusion here is that this was also a six month loan up to early Feb with an extension of 2 months. ilmoro you may wish to cast your eye over this one as your update list seems to have added 2 months to the July end date to take expected repayment to 2/9/16. I suspect this isn't the case. In the past it looks like most of the loans had a default term of 12 months regardless of the term for which interest has actually been paid. I'm pleased to see that some of the newer loans have been presented with shorter terms so I'm hopeful that the stated term and the term for which interest has been paid will now coincide for any new loans. The one thing we're not seeing yet is the remaining term being extended when further interest is paid, hence the proliferation of negative terms even though the loans (as far as I'm aware) are not in default. Quite right, I knew there was something bugging me about the entry for PBL46 which didnt seem to tally. Looks like I posted 42 update there instead and your right I had just added the extension on to the original indicated expiry date. Ive reset it back to July & added a caveat to the write up that it might be incorrect pending clarification from SS.
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Post by GSV3MIaC on Feb 29, 2016 16:20:11 GMT
ilmoro, if you're not on the SS payroll (or Christmas box list) I reckon they ought at least award you a small medal for your efforts to supply the stuff they ought to be supplying!! Many thanks for your continuing efforts!
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will
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Post by will on Feb 29, 2016 17:07:42 GMT
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 29, 2016 17:10:11 GMT
I don't think anything has changed concerning SS taking interest upfront from the borrower. However since that post, the SS website has been updated, but they have not indicated the above fact in their "how it works" part of the site. I'm sure it's nothing to worry about; I just think that sunspot likes to have a little groan about something  ....
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ilmoro
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'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 Feb 29, 2016 17:42:55 GMT
There is a simple explanation for what sunspot has picked up on. Its a relic from when some loans used to offer monthly or upfront interest. The formatting of the particulars was carried forward even after upfront interest was dropped, the older loans migrated with existing writeups to the site, hence old loans have that wording, new ones dont. There are a number of such relics eg loans typically 6 months statement appears regularly |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 29, 2016 17:45:33 GMT
There is a simple explanation for what sunspot has picked up on. Its a relic from when some loans used to offer monthly or upfront interest. The formatting of the particulars was carried forward even after upfront interest was dropped, the older loans migrated with existing writeups to the site, hence old loans have that wording, new ones dont. There are a number of such relics eg loans typically 6 months statement appears regularly The old master knows all.... we all bow to your superior knowledge  
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ilmoro
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Post by ilmoro on Feb 29, 2016 17:49:57 GMT
There is a simple explanation for what sunspot has picked up on. Its a relic from when some loans used to offer monthly or upfront interest. The formatting of the particulars was carried forward even after upfront interest was dropped, the older loans migrated with existing writeups to the site, hence old loans have that wording, new ones dont. There are a number of such relics eg loans typically 6 months statement appears regularly The old master knows all.... we all bow to your superior knowledge Until someone wiser contradicts me
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Post by sunspot on Feb 29, 2016 19:22:46 GMT
So PBLs 65, 66 & 67 (amongst others) could theoretically go into default at any time, even though they are only three months old? Call me picky, but I don't consider anything so young to be a "relic".
No need to look on my account, I wrote the definitive post in that thread! However, I'm now uncertain that my contributions were based on correct information.
NO. I like clarity when I'm investing large sums of money. I rather suspect you do too, but it seems that you cannot resist taking a pop. Not the first time, of course, and definitely not very cool!
That's a fair comment, and it was a coin toss decision. In the end, I chose to post here because it's an important point of interest to all, and we have had a number of contributions to threads from Saving Stream recently. Also, I'm not entirely comfortable posting emails.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 29, 2016 19:32:12 GMT
NO. I like clarity when I'm investing large sums of money. I rather suspect you do too, but it seems that you cannot resist taking a pop. Not the first time, of course, and definitely not very cool! I was only joshing with you sunspot , which I hoped would be shown via the use of a smiley face. However, I have to admit that most of your posts do come across very negative and sometimes arrogant, instead of constructive.
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