warn
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Post by warn on Apr 6, 2016 10:59:13 GMT
Very much against SS paying interest on loan parts for sale. Looks like SS took the advise of the forum again, implemented the ability to cancel a sale and continuing to not pay interest on sale parts.
Good on them. Seconded!
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boundah
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Post by boundah on Apr 6, 2016 11:04:25 GMT
Very much against SS paying interest on loan parts for sale. Looks like SS took the advise of the forum again, implemented the ability to cancel a sale and continuing to not pay interest on sale parts.
Good on them. Seconded! Thirded
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goopy
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Post by goopy on Apr 6, 2016 11:32:56 GMT
Very much against SS paying interest on loan parts for sale. Looks like SS took the advise of the forum again, implemented the ability to cancel a sale and continuing to not pay interest on sale parts.
Good on them. Seconded! I agree, but it would be nice if the forsaken interest was paid into the provision fund as suggested by locutus.
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locutus
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Post by locutus on Apr 6, 2016 11:36:08 GMT
I agree, but it would be nice if the forsaken interest was paid into the provision fund as suggested by locutus. Let's ask savingstream. They were willing to pay investors this interest so I don't see why they wouldn't be open to the idea of diverting this cash to the provision fund instead.
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littleoldlady
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Post by littleoldlady on Apr 6, 2016 11:46:26 GMT
I agree, but it would be nice if the forsaken interest was paid into the provision fund as suggested by locutus. Let's ask savingstream . They were willing to pay investors this interest so I don't see why they wouldn't be open to the idea of diverting this cash to the provision fund instead. Are you assuming that the PF is a ring-fenced fund held separately (like client funds) and not simply a notional amount? If so is there any indication that this is the case?
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locutus
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Post by locutus on Apr 6, 2016 11:49:47 GMT
Let's ask savingstream . They were willing to pay investors this interest so I don't see why they wouldn't be open to the idea of diverting this cash to the provision fund instead. Are you assuming that the PF is a ring-fenced fund held separately (like client funds) and not simply a notional amount? If so is there any indication that this is the case? I think the PF could do with being reworked to be honest. I think its value currently ebbs and flows with the value of the loan book. I would prefer to see it grow bigger over time starting with the amount we have now and supplemented with the interest from parts on sale and interest of the account in which it is held. Edit: And yes, it should be ring fenced.
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sam i am
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Post by sam i am on Apr 6, 2016 11:51:17 GMT
SS do not pay interest if the loan part is for sale. If you cancel the sale before midnight you then will receive interest and can put it back for sale afterwards but it would join the back of the for sale queue. I think what goopy was referring to was the suggestion (I think by SS) that they were considering giving interest on parts on sale. I heard many people talking for and against such a move. It was not a suggestion. It was a clear statement by SS that they would! See here. Like several others on this forum, I was initially in favour of the idea but have now turned against it if this has the result of clogging up the SM.
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goopy
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Post by goopy on Apr 6, 2016 12:17:59 GMT
I think what goopy was referring to was the suggestion (I think by SS) that they were considering giving interest on parts on sale. I heard many people talking for and against such a move. It was not a suggestion. It was a clear statement by SS that they would! See here. Like several others on this forum, I was initially in favour of the idea but have now turned against it if this has the result of clogging up the SM. They also say the interest from unsold loan parts currently goes into the provision fund??
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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 Apr 6, 2016 12:23:23 GMT
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sam i am
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Post by sam i am on Apr 6, 2016 13:00:30 GMT
It was not a suggestion. It was a clear statement by SS that they would! See here. Like several others on this forum, I was initially in favour of the idea but have now turned against it if this has the result of clogging up the SM. They also say the interest from unsold loan parts currently goes into the provision fund?? That's what they said but as I pointed out here I don't understand what that means.
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goopy
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Post by goopy on Apr 6, 2016 14:08:52 GMT
They also say the interest from unsold loan parts currently goes into the provision fund?? That's what they said but as I pointed out here I don't understand what that means. Exactly. Hence the ?? after my post. 
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jonah
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Post by jonah on Apr 6, 2016 18:39:30 GMT
Let's ask savingstream . They were willing to pay investors this interest so I don't see why they wouldn't be open to the idea of diverting this cash to the provision fund instead. Are you assuming that the PF is a ring-fenced fund held separately (like client funds) and not simply a notional amount? If so is there any indication that this is the case? In additional to ilmoro's correct statement above, at one time SS actually had a screenshot of the account their online banking system on their website, showing the exact balance etc. There was a little kurfuffle about that screenshot as I recall, but it was there for a bit!
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freddy
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Post by freddy on Apr 7, 2016 0:43:34 GMT
I whole heartedly support the transfer of interest, on loan parts for sale, to the provision fund. It would also be nice if the website provided information on the provision fund which clearly displays the 2% of total loan book plus the additional contributions as a result of the loan part for sale interest. I just can't see a downside to this.
> SS were willing to pay the 1% anyway so no additional cost to them.
> Investors selling their loan parts don't directly benefit so avoids the risk of clogging up the SM.
> A larger provision fund is of benefit to all investors in the event of defaults.
> A larger provision fund is of benefit to SS both in terms of attracting new investors and their ability to repay investors should loan/s default. SS have performed well to date however a couple of larger defaults with investors suffering losses or long delays in investment recovery would very quickly change things.
Given the amount of activity on the SM it wouldn't take long for the PF to show a healthy improvement in available funds. IMHO such an improvement is badly needed, especially as we are seeing more and more loans in the multi millions.
I wonder if SS would be able to run the data and see just how much would have been added to the PF over the past 12 months if the sales interest had been added.
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littleoldlady
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Post by littleoldlady on Apr 7, 2016 6:54:15 GMT
Just because there is a separate company does not mean that there is any money in it. Since it is discretionary it would seem odd not to use the funds for working capital, unless they are doing so well that they don't need to.
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dp
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Post by dp on Apr 7, 2016 11:09:00 GMT
I guess at the moment, any interest lost due to parts on the SM go into SS coffers and aid there development and profit.
Would be nice to see SS move this to the Provision Fund as discussed.
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