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Post by chielamangus on Nov 21, 2014 10:31:53 GMT
Interest is due on a given day. Surely interest on all AC loans is charged on all late payments, even for a day? If it isn't, it should be. That would sort the problem of late payments.
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mikes1531
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Post by mikes1531 on Nov 21, 2014 23:19:42 GMT
Interest is due on a given day. Surely interest on all AC loans is charged on all late payments, even for a day? If it isn't, it should be. That would sort the problem of late payments. I agree with the principle, but I'm not sure how practical enforcement would be. The payment on this loan is £3625. At 10% interest, that would be 99p/day for being late. I really don't think the threat of that would provide much incentive to the borrower. What would provide an incentive would be some sort of penalty for missing a payment, as I expect nearly all of our banks would apply if we failed to pay off our credit cards when due, but I haven't a clue whether AC have such penalties built into their loan agreements. I believe we've been told that all AC contracts do include default interest to be charged if a loan payment is missed. According to the website the default interest rate is an extra 4% -- though I must admit that I've never come across that amount in any of my loans. (I've only come across 3% or 6%.) For this loan, 4% would be £50/day and might make the borrower take notice, but AC don't generally invoke that contract term for payments that are just a few days late.
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Post by chielamangus on Nov 22, 2014 8:32:33 GMT
I am not into this loan - have a hatred of these subsidised, energy-ineffective, eyesores - but ... if the monthly repayment is £3600 then that suggests a daily cost of around £120, and a weekly cost of around £840. I am sure most lenders would prefer this money went to them rather than staying with the borrower.
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Post by gingergent on Nov 25, 2014 20:33:26 GMT
Borrower has already had this pointed out to him this morning.
Indeed, I've even offered to help him with it.
Does Chris know you're after his job? :-) More seriously, has the borrower confirmed, or is AC satisfied, that the late payments are due to "administrative oversight", or given any indication that this will be resolved in future? I support the grace period that AC apply to payments, but at the moment it's hard to be sure if this is lack of organisation, gaming the system or cashflow issues at the borrower's end. I've reduced my holding for now, but I'd be quite happy to increase it again if there was some comfort available.
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mikes1531
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Post by mikes1531 on Nov 25, 2014 21:31:15 GMT
Borrower has already had this pointed out to him this morning.
Indeed, I've even offered to help him with it.
... has the borrower confirmed, or is AC satisfied, that the late payments are due to "administrative oversight", or given any indication that this will be resolved in future? I support the grace period that AC apply to payments, but at the moment it's hard to be sure if this is lack of organisation, gaming the system or cashflow issues at the borrower's end. I've reduced my holding for now, but I'd be quite happy to increase it again if there was some comfort available. I don't know whether this is related to the late payment or just a coincidence, but I see that there are more lenders trying to sell Burnley parts on the Aftermarket now than there are lenders willing/able to buy them.
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Post by davidricketts1 on Nov 26, 2014 9:10:57 GMT
Borrower has already had this pointed out to him this morning.
Indeed, I've even offered to help him with it.
Does Chris know you're after his job? :-) More seriously, has the borrower confirmed, or is AC satisfied, that the late payments are due to "administrative oversight", or given any indication that this will be resolved in future? I support the grace period that AC apply to payments, but at the moment it's hard to be sure if this is lack of organisation, gaming the system or cashflow issues at the borrower's end. I've reduced my holding for now, but I'd be quite happy to increase it again if there was some comfort available. We are yes.
I have another contact now and we have agreed between us a payment schedule for all the deals (4 at the moment). The new contact should be office based so it should be easier to ensure payments are made on time.
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acorn
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Post by acorn on Dec 17, 2014 13:58:05 GMT
Payment due on the 16th but investment paused as not paid. The new contact is not making any difference then?
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Post by davidricketts1 on Dec 17, 2014 14:23:39 GMT
Payment due on the 16th but investment paused as not paid. The new contact is not making any difference then?
Chased already this morning acorn.
3 days holiday hasn't done much for my workload......
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mikes1531
Member of DD Central
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Post by mikes1531 on Dec 17, 2014 14:50:30 GMT
3 days holiday hasn't done much for my workload...... And I suppose you're thinking about taking Thursday and Friday of next week off as well! 
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Post by davidricketts1 on Dec 17, 2014 14:59:09 GMT
3 days holiday hasn't done much for my workload...... And I suppose you're thinking about taking Thursday and Friday of next week off as well! Ho ho ho....
(or bah humbug depending on your mood!)
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acorn
Posts: 118
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Post by acorn on Dec 17, 2014 15:18:35 GMT
3 days holiday hasn't done much for my workload...... And I suppose you're thinking about taking Thursday and Friday of next week off as well! And the Thursday after that, too! I don't know, some folk just seem to be on holiday all the time!
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Post by davidricketts1 on Dec 18, 2014 15:34:49 GMT
Repayment now made.
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