Loans in April/cashback

I think he meant when all qualifying loans are drawndown. Which makes it a bit sticky given Redr*th is one of them. And possibly WSM but can't remember the timing with that one.

When the cashback fanfare finally arrives with a 'tadaaaa' it might be met with a few "about time's" rather than "oh thankyou's"



Edit: Just checked WSM's rejected bids and there's a pile from 1st - 4th April so they would qualify.

AH didn't use the word all but that's the way I took it. They said at the time only one payment would be made, so it wouldn't be paid in dribs and drabs. So it's all in one big hit. I've no idea what I'm due...

I'm just about to go to bed but so far AC seem to be sticking with what they laid down Here i.e. One payment for all April Birthday cash-back, but to add confusion there are other loan specific cash-backs to compensate for drawing delays... Altho' I'm not aware of these being paid either just yet.

With no loans from the cashback period still proceeding toward drawdown, it seems that the issue of when to make the cashback payout boils down to how to deal with bids placed on loans that were live during the cashback offer but subsequently reverted to pre-bid status and eventually might be resurrected and proceed. 

I think there are three of those -- WSM, Aber, and Redr.  If the cashback payout is delayed until those either draw down or are declared irrevocably dead, it may be some considerable time before the cashback payout is made and AC would end up with a lot of unhappy lenders -- who were hoping to use the money for their summer hols?  At the moment, the pre-bids on these three loans are £200k, £230k and £246k, respectively, for a total of £676k.  I haven't a clue how that compares with the total amount of bids lenders had placed for those loans at the time they reverted to pre-bid status, but it's probably not too far wrong.  If the average lender qualified for 0.75% cashback, then there'd be about £5k of cashback tied up in those loans.

Perhaps in the interest of keeping this April cashback from dragging on further, AC would be willing to make the cashback payments as if those three loans had drawn down, and do that now. If the £5k cost estimate is roughly correct, that would be a small price to pay to keep everyone happy.  And if any of the three loans actually do come back to life and draw down then the extra cost of an early payout would be reduced considerably.

I'm not convinced that doing the cashback on a per loan basis is the best idea.  Aside from the complications of increasing the number of payments required by an order of magnitude, the tiered nature of the cashback offer means AC have to look at each lender's 'big picture' in order to determine what level of cashback they've qualified for.  And what to do about lenders where inclusion of their bids for the loans now in limbo would entitle them to a higher cashback category?

Maybe a compromise would be to calculate the cashback tier based on all bids -- including limbo loans -- and then apply that to bids excluding limbo loans.  That way AC could make a single payment per lender now.  Then, if any of the limbo loans come back to life, further payments could be made when those draw down.

That, however, does nothing for lenders' money that was tied up for long periods in the limbo loans, so I still think that making the payouts now as if the limbo loans had drawn down would be the most satisfactory solution.  It also has the advantage of allowing the matter to be dealt with once and for all -- and now.

I take the point that cashback calculations and payments should be automated at AC as they seem to be elsewhere...

...but I still maintain that the tiered nature of the recent AC offer made paying cashback as each loan is drawn down more difficult -- which isn't to say that the calculations couldn't be automated.