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Post by andrewholgate on May 23, 2016 8:22:39 GMT
andrewholgate Thanks for the info Default Declared interest will accrue at our default rate which is usually around 4% per annum above the published rate on the loan.
Not on any loan paying default interest Im in, is this a typo or has the current rate of 3% above increased on recent loans?
Also 100% of defaulted interested recovered on the 9 defaulted loans isnt strictly true (as the caveat admits), the fact that lenders agreed to waive some of the interest in order to get the capital back means that AC was unsuccesful in achieving full recovery and personally I think the figure should reflect this. 95% would still be pretty good.
Which is why it says the default rate is USUALLY around 4% and doesn't say IS 4%. Not sure it needs amending. Caveat does cover this off.
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Post by andrewholgate on May 23, 2016 8:27:54 GMT
andrewholgate : Thanks for publishing this info. It will be interesting to see how this changes in future. In the meantime, I'm confused a bit by the 'Defaulted loans being recovered' section... - The expected capital loss shown is described as 'conservative', and might turn out to be less than stated because past recoveries have been better than 'initial worst case assessments'. Does this mean the numbers given are the 'worst case' amounts? Or are they 'likely' amounts?
- Having been given the capital recovery (£5.115M) and the expected capital loss (£1.345M), I can see that the expected capital recovery factor is 79.2% [= 5.115 / (5.115 + 1.345)]. But what is the expected recovery factor for interest accrued after default? We've been told AC expect to recover £335k of accrued interest, but we've been given no clue whether that's most of the accrued interest or only a small fraction.
- Is it fair to presume that any recovery would be classified as capital first and then, if capital was 100% recovered, any remaining recovery would be classified as interest? If that's the case, then I take the fact that AC expect to recover some accrued interest to mean that AC expect to achieve 100% capital recovery for some of these eight loans. If that's not the case, then how is it decided how any recovery amount is divided between capital and interest? (In thinking about it a bit more, I sure hope none of a recovery is considered to be interest unless all capital is recovered, as otherwise an investor who sold their parts and recovered their capital before trading was stopped will receive an interest payout at the same time that investors who stayed to the end will have lost capital -- IMHO that's not a fair distribution of the recovery proceeds.)
As a minor point, in the 'What Are Losses?' section, the second paragraph starts with "If a default is triggered and the lender cannot cure the problem...". I would have thought it was the borrower who needed to cure the default, not the lender.
Lots of good questions: - We have only included known recovery sums and not included possible other recoveries. Example on a loan for the student accommodation, we know there is a value for the building, but there is also a PG. We think there are other assets we can utilise under the PG but until we pursue them (and can only do some once the main asset is sold) I can't give a solid recovery figure for them. - There will be more data coming including a loan by loan breakdown of what is recovered or being recovered. - Any recovery is Capital then interest then default interest.
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Post by andrewholgate on May 23, 2016 8:40:20 GMT
This default data has ignored the pre-drawndown interest that some borrowers owe. They were promotions which encouraged lenders to invest, but which have not been paid. It amounts to several thousands of pounds, but AC have failed to pursue the borrowers for these payments. Please send me details to andrew@assetzcapital.co.uk I will investigate as I thought this had been dealt with.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on May 23, 2016 20:42:49 GMT
This default data has ignored the pre-drawndown interest that some borrowers owe. They were promotions which encouraged lenders to invest, but which have not been paid. It amounts to several thousands of pounds, but AC have failed to pursue the borrowers for these payments. Please send me details to andrew@assetzcapital.co.uk I will investigate as I thought this had been dealt with. I have submitted details of unpaid pre-drawdown interest for loans #105 and #122.
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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 May 23, 2016 22:37:57 GMT
Please send me details to andrew@assetzcapital.co.uk I will investigate as I thought this had been dealt with. I have submitted details of unpaid pre-drawdown interest for loans #105 and #122. Here's the post with the others, anyone able to fill in the details of whats outstanding so we can send AH all the info, what Ive gleaned from Q&A is in blue but as I can only remember being involved in two of these (cant find my email to Dom Riddles on the subject  ) they may not be accurate (AC updates didnt migrate & some are dead pages) andrewholgate : As part of the spring clean, can we have an update, one or way or another, on all the loans that are still owing pre-drawdown interest? If these are still being chased (as we last heard), then there's been no update and no easy way to track activity once the loans have been removed from the platform. So are they still being actively chased, or will AC acknowledge they've been written off? I have asked previously, but no solid answer beyond "we are aware of these". Examples: - others will remember more of them ... #61 High Wycombe CP (gone legal), #105 East Midlands Property, 4% for 4 weeks from 11/8/14, 8% from 11/9/14, 10% from 2/10/14 to cancelled#88 Redruth Dev Loan, 3% for 4 weeks#80 Weston Super Mare, 2.5% for 4 weeks#100 London Software, 4% from 18/8/14 until cancellled#122 North Wales Bridge (gone legal), 4 days@5%, 44 days@11% plus 0.5% cashback#124 Yorkshire Mobile Phone 56 days@8% 7/10-2/12/14
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mikeb
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Post by mikeb on May 24, 2016 10:34:25 GMT
This default data has ignored the pre-drawndown interest that some borrowers owe. They were promotions which encouraged lenders to invest, but which have not been paid. It amounts to several thousands of pounds, but AC have failed to pursue the borrowers for these payments. I was thinking about these loans the other day, hoping they would be acknowledged in this default data. Evidently they don't count as "defaulted" under any sense. It's just money owed to lenders that has still not been paid. Whether the money is owed by AC (as a promotion/inducement to bid) or by the borrower (who agreed to fund these things) I don't know. We've had no real update on that in ages, despite promises from andrewholgate to release some kind of statement/update, has anyone seen it?
Spring clean 2015: p2pindependentforum.com/post/52583/thread
And more recently p2pindependentforum.com/thread/4627/stats?page=1&scrollTo=103163
AC's customer services acknowledge the loans by saying "we are aware of these loans". So they've not been forgotten or swept under the rug, despite appearances.
Either AC have written this money off, and don't want to tell us, OR are still chasing it through the courts -- legal action was started on some of them, but nothing heard.
Spring is sprung
The grass is ris
I wonder where the update is?
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mikeb
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Post by mikeb on May 24, 2016 10:46:30 GMT
#124 details: 56 days at 8% (7/10 to 2/12 2014)
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) they may not be accurate (AC updates didnt migrate & some are dead pages)