mikes1531
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Post by mikes1531 on Mar 1, 2016 12:41:20 GMT
Nearly £500,000 of PBL084 available!!!! And gone again two minutes later. Did you look at the Investor Activity for that loan at the time? Looking at it now, only a few minutes later, the most recent ten purchases total less than £2500. Perhaps it's SS moving things around again?
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webwiz
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Post by webwiz on Mar 1, 2016 14:03:09 GMT
So the majority like INPL, no surprise there. But it begs the question: If it is so good why is SS the only platform (AFAIK) to offer it? The answer in at least two cases is they consider it to be in breach of the regulations about client money segregation.
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Post by sunspot on Mar 1, 2016 14:37:17 GMT
webwizI think most people here would agree that I'm pretty picky, but I can see no regulatory problems to the company extending its own money as credit. The only funds that we know sit in the client account are unspent deposits and interest. I sincerely hope that upfront interest deducted from the loans is also held at arms length. However, as yet, we still don't even have confirmation that interest is still deducted up front, let alone where it is stored.
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spiral
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Post by spiral on Mar 1, 2016 14:38:04 GMT
To me, the simple solution is not to pay interest on credit purchases until the balance is redressed so anything bought today on credit but not paid for until tomorrow, doesn't earn interest until tomorrow.
Simples!
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mikes1531
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Post by mikes1531 on Mar 1, 2016 15:03:57 GMT
The only funds that we know sit in the client account are unspent deposits and interest. I sincerely hope that upfront interest deducted from the loans is also held at arms length. However, as yet, we still don't even have confirmation that interest is still deducted up front, let alone where it is stored. AIUI, upfront interest is the borrower's money until it is due -- probably 'transferred' on a monthly basis. Until it's used, I would think it ought to be in some sort of client account so that if SS were to fail SS's creditors couldn't access the part of the upfront interest that's still 'paid in advance'.
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webwiz
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Post by webwiz on Mar 1, 2016 16:00:17 GMT
webwiz I think most people here would agree that I'm pretty picky, but I can see no regulatory problems to the company extending its own money as credit. The only funds that we know sit in the client account are unspent deposits and interest. I sincerely hope that upfront interest deducted from the loans is also held at arms length. However, as yet, we still don't even have confirmation that interest is still deducted up front, let alone where it is stored. If you search the AC forum you might find an explanation from their Technical Director. I don't know about you but I am not qualified to give an opinion, but I don't think it's as simple as you imagine. He describes scenarios where client money can be lost IIRC.
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webwiz
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Post by webwiz on Mar 1, 2016 16:02:41 GMT
To me, the simple solution is not to pay interest on credit purchases until the balance is redressed so anything bought today on credit but not paid for until tomorrow, doesn't earn interest until tomorrow. Simples! Not simple at all. It would be OK if someone bought a single loan and then paid for it without doing any other activity, but in general very complicated. Think about it.
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spiral
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Post by spiral on Mar 1, 2016 17:29:39 GMT
To me, the simple solution is not to pay interest on credit purchases until the balance is redressed so anything bought today on credit but not paid for until tomorrow, doesn't earn interest until tomorrow. Simples! Not simple at all. It would be OK if someone bought a single loan and then paid for it without doing any other activity, but in general very complicated. Think about it. Not really because you either have a negative balance at the end of the day, or you don't. If you do, then interest to the equivalent of that amount i.e. aprox 1p per £30.41 of negative balance is deducted. Take your choice as to which loan part purchased that day its applied to.
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webwiz
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Post by webwiz on Mar 1, 2016 17:37:55 GMT
Not simple at all. It would be OK if someone bought a single loan and then paid for it without doing any other activity, but in general very complicated. Think about it. Not really because you either have a negative balance at the end of the day, or you don't. If you do, then interest to the equivalent of that amount i.e. aprox 1p per £30.41 of negative balance is deducted. Take your choice as to which loan part purchased that day its applied to. But that's not what you said. And I doubt that it would be legal for SS to arbitrarily decide which loan to penalise.
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Post by sunspot on Mar 1, 2016 18:05:21 GMT
If you search the AC forum you might find an explanation from their Technical Director. I don't know about you but I am not qualified to give an opinion, but I don't think it's as simple as you imagine. He describes scenarios where client money can be lost IIRC. If you want to search the AC forum, go ahead. I'm not going to waste my time! As for qualification - I've never sat any financial exams, but I understand money well enough. And while regulators frequently add silly rules, telling a private unlisted company how it can and cannot spend its own money would probably be a first. And if the AC Technical Director reckons that spending the company's own money puts client money at risk, then AC clearly has MAJOR issues of separation to sort out. But I'll stick my neck out and suggest that he said nothing along those lines whatsoever.
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