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Post by robthos on May 30, 2016 9:23:58 GMT
My recent deposit shows I am bidding on 3 loans, all of which say'ended''.
Should these amounts be shown now as loans and BE ACCRUING INTEREST?
Many thanks for any advice.
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SteveT
Member of DD Central
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Post by SteveT on May 30, 2016 9:51:39 GMT
My recent deposit shows I am bidding on 3 loans, all of which say'ended''. Should these amounts be shown now as loans and BE ACCRUING INTEREST? Many thanks for any advice. No. Borrowers get a week from the end of the auction to decide whether or not to accept the loan or not. If the "Repayments" tab shows "Pre-agreement" dates then this shows when your parts will begin earning interest (but only IF the loan is accepted).
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Post by robthos on May 30, 2016 10:17:22 GMT
Many thanks for that info.
Do I have to do anything to accept the loans? I had previous loan bids which ended and appeared on my account as incresed number of loans.
Sorry if I appear to be a bit thick but I was not able to find the exat working of this and am still learning.
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fasty
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Post by fasty on May 30, 2016 12:04:53 GMT
Many thanks for that info. Do I have to do anything to accept the loans? I had previous loan bids which ended and appeared on my account as incresed number of loans. Sorry if I appear to be a bit thick but I was not able to find the exat working of this and am still learning. No, once you have placed a bid then you don't need to do anything else. Once the loan is 100% funded, the borrower accepts the loan and draws down the money, then that bid will move from "My Bids" to "My Loan Parts" and you earn interest.
Occasionally borrowers change their mind or discover they can get the money cheaper somewhere else, and decline the loan offer. If this happens then the loan gets aborted and you get your bid money back into "available funds". It's annoying when this happens because it can tie up your money uselessly for a couple of weeks.
Feel free to ask questions here, there are plenty of friendly people keen to help. Just don't say anything that could actually identify a borrower (like their name or company) because that will incur the wrath of the moderators. If you want to talk about a particular loan, refer to it by the loan number instead.
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blender
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Post by blender on May 30, 2016 15:05:44 GMT
Yes, once you bid you are committed to lend and your cash is held against the bid. The borrower is not, currently, committed and has up to two weeks from the start to accept and draw down the loan. If the borrower does not accept the loan you get no interest, and your money back after up to two weeks. However, if the borrower does accept the loan then interest will start after one week from the start (ended) at the latest. Earlier if the borrower accepts the loan earlier and it goes to pre-agreement. But even loans which go to pre-agreement on the first day can end up not being accepted, sometimes after a long time.
Changes are promised so that loans are accepted before being listed - but we are still waiting.
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Post by GSV3MIaC on May 30, 2016 15:09:02 GMT
It's actually 5 =working days= from the auction close, although FC have sometimes allowed a day or two overrun (often with a note in the repayments tab) and have once or twice forgotten and left the bids stranded for a week or more until someone cried 'foul'.
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Post by robthos on May 30, 2016 15:58:55 GMT
Thank you all for your prompt and enc..ouraging replies. I think I now have the full picture on the bidding front.
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am
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Post by am on May 30, 2016 18:30:26 GMT
This is partly a holdover from the days when FC ran reverse auctions (lenders bid to lend at a particular rate, and the lowest rate bids at the end of the auction made up the potential loan); as the borrower didn't know in advance what rate they would be offered they couldn't be expected to commit to accepting the loan. Some borrowers probably still like the loan being optional - they can use the offer in negotiating with other potential lenders.
FC has indicated an intention to move over to pre-acceptance, whereby the borrower is committed to accepting the loan if it fills. In current market conditions the chance of a loan not filling is vanishingly small.
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