jo
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Post by jo on Sept 14, 2016 8:08:05 GMT
I started looking at Accrued Income/Ave Monthly Income ratio on the 3 AC accounts I manage.
The first account, 3 1/2 years old, works out to accrued interest of 6.5 months outstanding. The bulk of this was MLIA investment, though now it's rolled into GBBA and the short term accounts.
The other two are sub-2 years old with no (or almost no) MLIA and work out at 3.25 and 1.5 months of accrued interest outstanding.
Would be interested to hear others' experiences of this.
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Post by westcountryfunder on Sept 14, 2016 14:23:36 GMT
I started looking at Accrued Income/Ave Monthly Income ratio on the 3 AC accounts I manage. The first account, 3 1/2 years old, works out to accrued interest of 6.5 months outstanding. The bulk of this was MLIA investment, though now it's rolled into GBBA and the short term accounts. The other two are sub-2 years old with no (or almost no) MLIA and work out at 3.25 and 1.5 months of accrued interest outstanding. Would be interested to hear others' experiences of this. Difficult to comment without a lot more information about transactions, except to say that on my MLIA there is a lot of accrued interest much of which may well not materialise, because there is a very significant amount outstanding on loans such as Ippy and Eppy (and others) which look like probable bad debts.
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mikeb
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Post by mikeb on Sept 14, 2016 18:12:55 GMT
... and the ever expanding Loan #35 (G0* Tranche 2) accruing at 68 hypothetical but contractually agreed percent APR.
That's quite a chunk of outstanding interest, can't even get the principal back at this stage (!)
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kermie
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Post by kermie on Sept 14, 2016 19:15:06 GMT
Indeed, I stopped paying any attention to accrued interest a long time ago. If I were AC, I would remove it - the minimal benefit to lenders is probably outweighed by the customer service calls it generates with questions/queries.
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jo
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Post by jo on Sept 15, 2016 7:29:28 GMT
Thanks all.
I find that numbers often tell the story a lot more revealingly than words.
It's a pet hate of mine that all borrower-requested extensions don't contain a mandated requirement to service (at the very least, some) interest before consideration. Concentrates the mind and discourages 'can-kicking'.
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niceguy37
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Post by niceguy37 on Sept 15, 2016 9:17:11 GMT
I've got 3 months outstanding interest on my MLIA, build up over 4 years (but not a lot of new investment in the last year).
But 20% of that outstanding interest is in #35 G** T2, where high rate of interest means that the interest is now one and a half times the capital owing.
And 15% each in #57 Optical and #129 Ippy.
I've another 16% in various suspended loans.
I've also 8.5% in #79 Aberystwyth. I've sold off my loans in this so now I'm only owed interest and this lender seems to now be only making capital repayments. So it might be a long while before I see anything, and my holding will not be earning interest while I wait.
So that's 75% of my headline accrued interest in less than perfect loans, and I guess I might eventually get about a third or a quarter of this 75%.
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mikeb
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Post by mikeb on Sept 17, 2016 16:51:07 GMT
But 20% of that outstanding interest is in #35 G** T2, where high rate of interest means that the interest is now one and a half times the capital owing. Careful what you moan about wish for, that's now been set to 0%.
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jo
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Post by jo on Sept 19, 2016 17:49:50 GMT
Nice to see #171 paying some interest as part of the request. Putting his money where his etc...
More of this.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Sept 22, 2016 13:49:30 GMT
Indeed, I stopped paying any attention to accrued interest a long time ago. If I were AC, I would remove it - the minimal benefit to lenders is probably outweighed by the customer service calls it generates with questions/queries. I keep a close eye on accrued interest and have discovered errors do occur. Without this info, by the time interest is received it would be difficult to argue the case because AC always ask when the error occurred.
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