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Post by wonder on Jul 12, 2017 8:40:45 GMT
Paul64 Could you clarify something for me please - if you cancel a loan part on the SM, do we still get the Interest for the duration it was listed (up to months end), or has that feature been removed The "Reminder that interest is not paid when loan parts are put up for sale" makes me think that the above may have been removed... but I can't work it out  Hi. Do we have a reliable answer to CD's question yet? It would be good to know!
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grahamg
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Post by grahamg on Jul 12, 2017 11:04:00 GMT
Paul64 Could you clarify something for me please - if you cancel a loan part on the SM, do we still get the Interest for the duration it was listed (up to months end), or has that feature been removed The "Reminder that interest is not paid when loan parts are put up for sale" makes me think that the above may have been removed... but I can't work it out Hi. Do we have a reliable answer to CD's question yet? It would be good to know! Other questions related to this are: If you sell a loan part during the accrual phase do you still get the accrued interest and if so when and to what date?. Do you get it immediately or does Lendy remember the sale and credit you when the interest is recovered? Similarly what happens if you both buy and sell a part during the accrual phase? Have these actions been fully tested ?
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twoheads
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Post by twoheads on Jul 12, 2017 11:19:57 GMT
Disabling of available loans market trading on defaulted/suspended loans
Driven by FCA rules, secondary trading in loans will be temporarily suspended if interest payments or principal payments are delayed to the extent that the loan is deemed to be in default. Secondary trading in such loans has traditionally been at a very low level so in practical terms this will not have a substantial impact on secondary trading.
I, like many here, am assuming that the current definition of 'default' will be applied (i.e. more than 180 days over term).
Since nobody will be able to purchase loan parts on defaulted loans there will be no point in putting them up for sale. Presumably, the 'sell' option will be disabled on defaulted loans. Presumably also, all existing selling loan parts on defaulted loans will be cancelled automatically (what about partially sold parts? that could be a bit of a headache!).
This would wipe out £713,382 from the SM overnight. Okay, I know many people don't take into account the defaulted loans in the total SM value... but it's there just the same.
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nick
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Post by nick on Jul 12, 2017 16:51:50 GMT
FAO Paul64 , savingstream , Lendy Support :
New cash back offer
As part of this offer lenders who fund tranches of a qualifying development loan will receive cash back worth 1/12th of their investment in that loan (i.e. equivalent to one extra month's interest per annum) payable at the same time as their interest payment.
This is a somewhat confusing missive: What exactly do you mean?
If it's cash back then I expect it to be paid in full at the first monthly interest run (or even before). Also, I think your system would struggle to cope with paying cash back over a year of monthly payments. For example: when buying on the SM, how would an investor know if they were buying 'cash back' tranche parts, or 'non cash back' original parts? Therefore I think all cashback would have to be paid in a lump sum which would be fixed at purchase time.
My problem is:
If the CB is 1/12 of the annual interest for a year then it's only 1% and this is entirely insufficient to make a significant difference.
If the CB is 1/12 of the investment then it's 8.3% and I think that's very generous (thank you), especially if the cash back all comes in within a month.
Which is it to be?
Please explain.
Updated FAQ on website now makes it clear its 1/12 of the annual interest rate, 1% on a 12%pa loan: "As part of this offer lenders who fund tranches of a qualifying development loan will receive cash back worth 1/12th of the annual interest earned, (i.e. equivalent to one extra month’s interest per annum), payable at the same time as their interest payment. For example, a 12% loan would earn an extra 1% in interest." It remains unclear whether the cashback is paid as a single payment on the first interest run, or accrues and is paid on a monthly basis, I suspect the former, but who really knows! The lack of clarity is frustrating and ultimately lessens the incentive if what's on offer is unclear/ambiguous. The same applies to the late payment bonuses. edit: crossed with new2p2p
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mary
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Post by mary on Jul 12, 2017 17:27:15 GMT
Updated FAQ on website now makes it clear its 1/12 of the annual interest rate, 1% on a 12%pa loan: "As part of this offer lenders who fund tranches of a qualifying development loan will receive cash back worth 1/12th of the annual interest earned, (i.e. equivalent to one extra month’s interest per annum), payable at the same time as their interest payment. For example, a 12% loan would earn an extra 1% in interest." It remains unclear whether the cashback is paid as a single payment on the first interest run, or accrues and is paid on a monthly basis, I suspect the former, but who really knows! The lack of clarity is frustrating and ultimately lessens the incentive if what's on offer is unclear/ambiguous. The same applies to the late payment bonuses. Quite important form a tax perspective, methinks. Can it still be classed as an incentive - and therefore tax free - if it isn't paid in a single amount at drawdown (or, in this case the next interest run)? Would HMRC just regard it as some kind of 'enhanced interest' if paid pro-rata over 12 months? Have Lendy considered the tax implications? (Not their tax implications - but the implications of having '16,000 investors' querying them as to how Accrued Bonuses and Cash Back should be treated as tax?) Like most here I do not understand how this CB works, added with the lack of clarity regarding tax I'm just going to avoid until we have some detailed explanations and worked examples.
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mickj
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Post by mickj on Jul 12, 2017 18:21:19 GMT
No I don't fully understand - new loans email for 13/07/2107 gives option to click and read revised cashback offer (was updated 10 minutes ago) then option of was this helpful click yes or no. I am logged into my account but unable to click the no option because my email is not associated with my password! Do I want to reset my password ? well no - I can open my account pages, just not login to 'Help Centre' Do I need a different login for the help centre part of Lendy perhaps ? if so why. mary is quite right, a couple of simple worked examples would be nice, seems to me cash back causes problems with my tax return so can any examples include how this will be included on the tax statement and acceptability. Paul64 savingstream Lendy SupportOpportunity for something in the weekly update, sans tennis, tour, cricket and politics perhaps. |
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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 Jul 12, 2017 18:31:23 GMT
No I don't fully understand - new loans email for 13/07/2107 gives option to click and read revised cashback offer (was updated 10 minutes ago) then option of was this helpful click yes or no. I am logged into my account but unable to click the no option because my email is not associated with my password! Do I want to reset my password ? well no - I can open my account pages, just not login to 'Help Centre' Do I need a different login for the help centre part of Lendy perhaps ? if so why. IIRC yes. No idea.
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elsee
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Post by elsee on Jul 12, 2017 18:44:07 GMT
No I don't fully understand - new loans email for 13/07/2107 gives option to click and read revised cashback offer (was updated 10 minutes ago) then option of was this helpful click yes or no. I am logged into my account but unable to click the no option because my email is not associated with my password! Do I want to reset my password ? well no - I can open my account pages, just not login to 'Help Centre' Do I need a different login for the help centre part of Lendy perhaps ? if so why. IIRC yes. No idea. I just clicked from the pipeline loan link, the offer is below As part of this offer lenders who fund tranches of a qualifying development loan will receive cash back worth 1/12th of the annual interest earned, (i.e. equivalent to one extra month’s interest per annum), payable at the same time as their interest payment. For example, a 12% loan would earn an extra 1% in interest.
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twoheads
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Post by twoheads on Jul 12, 2017 19:42:24 GMT
Yes. I believe it's because it is hosted by a third party ( ZenDesk) and although technically possible to link the two systems and have a 'passthru' from the Lendy platform to (Lendy's presence on) the ZenDesk support portal, it hasn't been implemented. I hadn't realised that there was a 'log-in' possibility for the help desk.
So I signed up - and of course you're completely correct - it's a separate account although I expect you can use the same password if, like me, you are foolish enough to do so.
What I haven't yet discovered is the benefit of signing up. So far, all the Lendy 'help' pages I can see when signed in I can also see when not signed in.
I guess ZenDesk can now sell my e-mail address. Fabulous!
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mickj
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Post by mickj on Jul 12, 2017 20:23:37 GMT
Thanks all, created new login for the support/help page and think I was able to vote NO to helpful............... Is just me that feels this has been put together over a glass of warm Prosecco and forum members are now asking the pertinent questions, I guess that's what piloting is  |
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copacetic
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Post by copacetic on Jul 12, 2017 20:29:49 GMT
While from HMRC's perspective cashback isn't taxable (it's just a belated discount on a purchase) the FAQ kind of muddies the water a little bit support.lendy.co.uk/hc/en-us/articles/115004148165-Can-you-tell-me-more-about-the-new-cash-back-offer-Lendy have a cashback box in their annual statement though so hopefully they will keep track of this for us without having to manually sort it out. One thing about cashback is that if Lendy advance a cashback tranche to a developer who's loan is in negative days they'll still need to pay the cashback at the end of the month even though the interest is accruing otherwise it isn't really cashback. |
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rxdav
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Post by rxdav on Jul 12, 2017 20:41:14 GMT
Well it seems (I'm pleased to report) that is isn't just me who thinks this whole 'upgrade' of Ly systems is highly confusing - and poorly executed. I've never had so many 'likes' for one post when I suggested previously that confusion and complication abounds - and sadly, simplicity is the consequent casualty.
If Ly are keen to corner the P2P market in the 'rain-man/nerd/anorak/MENSA' niche - they are most certainly onto a winner. I'm sure these individuals (all three or four of them likely) will be delighted that they can demonstrate to us mere mortals their unique skills, intellect and expertise with regard to engaging with the new Ly systems.
However, if Ly wish to continue to engage with the mainstream of we 'run of the mill', average P2P users (and indeed expand their user base) then I suggest they need to get back down here on planet Earth - and quickly.
What are you guys on!? (because I would like a glass or two please).
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twoheads
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Post by twoheads on Jul 12, 2017 21:12:06 GMT
Well it seems (I'm pleased to report) that is isn't just me who thinks this whole 'upgrade' of Ly systems is highly confusing - and poorly executed. I've never had so many 'likes' for one post when I suggested previously that confusion and complication abounds - and sadly, simplicity is the consequent casualty. It was a great post and deserved the plaudits.
Personally, I make a point of 'liking' any post that makes me laugh (in a good way)!
I think we'll get used to the new systems. The 'overdue bonus' is already happening and seems simple enough. It has caused some movement in overdue loans already (albeit those few that have very low LTV).
I think we'll also get used to the 'cash back' on DFL tranches once we actually understand how it works. Unfortunately, Lendy lack any communicator who can clearly explain exactly how their stuff works. We get incomplete and inaccurate statements which we must question and attempt to decipher as best we can. Our musings sometimes cause Lendy to make amendments but these rarely answer the question being asked and often muddy the waters further.
Ho hum... another glass bottle case of whatever they're on please.
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twoheads
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Post by twoheads on Jul 13, 2017 16:59:22 GMT
For those who are interested:
Yesterday, PBL106 ticked over to -212 days, which is exactly seven months since redemption day (12/12/2016) and today (presumably at midnight but I was offline) it's bonus changed from 3% to 3.5%.
Today, PBL031 has also ticked over to -212 days (definitely today because I looked for other overdue loans, potentially on the 'threshold') and it's bonus is still only 3% as I write.
Therefore I assume that the 'new' bonus is calculated on the remaining overdue term as it is stands at midnight. That would explain it so far and would also be consistent with the nightly interest calculations.
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Post by justdabbling on Jul 13, 2017 18:05:50 GMT
I don't think some investors realise that 3/6/9 % of nothing is nothing LY should offer nectar points - that would move the SM I'd prefer BOGOF!! Yes, the loss of the commitment by Lendy to pay out interest for 90 days for overdue loans is just that, a loss and an increase in risk for the lender. I cannot find anything about the transitional arrangements for loans already taken out and I would have thought that it be a breach of contract to take away the guarantee of 90 days interest for loans already held by lenders as it is clearly stated in the Default policy that Lendy will pay the first 90 days. If, during the transitional period, Lendy routinely pay out the bonuses on these loans as well as fulfilling their commitment to paying the 90 days, then these loans could be seen to be the best of two worlds, especially compared with a shorter term loan issued after the conditions have changed.
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