jomantha
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Post by jomantha on Apr 25, 2017 17:50:49 GMT
Before Lendy can do anything they need to resolve the issue of prefunding loans that were definitely not prefunded.
This happened to me with the Arboreteum and threw my plans up in the air - I ended up selling £1k of something I wanted - to fund something I didn't want that they erroneously allocated me, in order to keep my part of the second loan they released I did want.
It had a knock on effect of not being able to fund my husbands account.
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jomantha
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Post by jomantha on Apr 25, 2017 18:24:58 GMT
... The system needs fixing/altering so that SM bought loan parts can be resold immediately, if indeed investors choose to do so. Otherwise, investors who planned to clear their PM INPL negative balance with the sale of recently bought SM loan parts, are unable to, creating a catch 22 situation for both investors and Lendy. Perhaps there's a more subtle motivation behind the continued ban on short-term sales. ... in particular they may wish to discourage investors from "plann[ing] to clear their PM INPL negative balance with the sale of recently bought SM loan parts", instead hoping those investors will avoid the hassle by leaving the balance intended for the next drawdown in cash rather than buying SM loan parts that they intend to sell within a couple of days. They need to ensure there are people around to fund things - there is nothing wrong with buying loan parts and planning to sell them on - it is the nature of the beast, the risk being you are going to get stuck with them at some point. Why would Lendy care how people run their accounts?
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elliotn
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Post by elliotn on Apr 26, 2017 1:22:13 GMT
Perhaps there's a more subtle motivation behind the continued ban on short-term sales. ... in particular they may wish to discourage investors from "plann[ing] to clear their PM INPL negative balance with the sale of recently bought SM loan parts", instead hoping those investors will avoid the hassle by leaving the balance intended for the next drawdown in cash rather than buying SM loan parts that they intend to sell within a couple of days. They need to ensure there are people around to fund things - there is nothing wrong with buying loan parts and planning to sell them on - it is the nature of the beast, the risk being you are going to get stuck with them at some point. Why would Lendy care how people run their accounts? If you are allowed, say, 48 hours to pay for your loans you could churn loan parts with a negative balance during busy go live periods and earn interest without paying for them.
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dzo
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Post by dzo on Apr 26, 2017 6:11:02 GMT
They need to ensure there are people around to fund things - there is nothing wrong with buying loan parts and planning to sell them on - it is the nature of the beast, the risk being you are going to get stuck with them at some point. Why would Lendy care how people run their accounts? If you are allowed, say, 48 hours to pay for your loans you could churn loan parts with a negative balance during busy go live periods and earn interest without paying for them. You can do that anyway with DFL tranches. Just sell the old tranche before you have to pay for the new one.
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spiral
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Post by spiral on Apr 26, 2017 8:47:33 GMT
You can do that anyway with DFL tranches. Just sell the old tranche before you have to pay for the new one. Do you know that works as fact? In the days of INPL on the SM, I inadvertently bought something that I already had my full exposure too. I didn't realise until the following day when reconciling my account but I couldn't sell the bit I bought due to the 7 day rule so sold some of my already held loan part. At the end of the month, I didn't receive double interest for that loan for that day, the system somehow identified that I'd bought and sold parts in a loan that wasn't fully paid for and subsequently reduced my interest payment for those unpaid parts.
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dzo
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Post by dzo on Apr 26, 2017 20:04:22 GMT
You can do that anyway with DFL tranches. Just sell the old tranche before you have to pay for the new one. Do you know that works as fact? In the days of INPL on the SM, I inadvertently bought something that I already had my full exposure too. I didn't realise until the following day when reconciling my account but I couldn't sell the bit I bought due to the 7 day rule so sold some of my already held loan part. At the end of the month, I didn't receive double interest for that loan for that day, the system somehow identified that I'd bought and sold parts in a loan that wasn't fully paid for and subsequently reduced my interest payment for those unpaid parts. I've never gone as far as to check for double interest. I just assumed it was paid.
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