toffeeboy
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Post by toffeeboy on Aug 30, 2017 10:54:23 GMT
I'm slightly concerned about this, this is the 3rd time in the last couple of weeks that there seems to be a difference in whats being done / proposed to be done vs the new T&Cs. I think MT need to check and refine their T&Cs to ensure that they are being followed. As far as notification of missed payments, I suggest 3 working days is a good balance to filter out the noise that may well happen with a borrower who leaves it to the last minute and misses bank cut off and other similar very short term issues, before MT notify lenders that a payment has been missed. I would be disappointed to find out that the borrower is having to do anything, I might be wrong but I would have hoped that MT would have a direct debit in place to collect the money from the borrowers this is a loan after all and any loan I have taken I have had to sign a direct debit form, why do you think it would be any different here?
I would be very surprised if this payment was left to rely on someone pushing a button like paying a supplier in which case I think that any late payments should be reporting as it suggests that there wasn't any funds available to make the direct debit payment.
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will
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Post by will on Aug 30, 2017 11:44:02 GMT
Some advice from my old man was to always pay invoices as late as you can get away with as it improves your cash flow. Maybe those that pay late are actually the business savvy ones who are less likely to default?
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robski
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Post by robski on Aug 30, 2017 12:13:07 GMT
I'm slightly concerned about this, this is the 3rd time in the last couple of weeks that there seems to be a difference in whats being done / proposed to be done vs the new T&Cs. I think MT need to check and refine their T&Cs to ensure that they are being followed. As far as notification of missed payments, I suggest 3 working days is a good balance to filter out the noise that may well happen with a borrower who leaves it to the last minute and misses bank cut off and other similar very short term issues, before MT notify lenders that a payment has been missed. I would be disappointed to find out that the borrower is having to do anything, I might be wrong but I would have hoped that MT would have a direct debit in place to collect the money from the borrowers this is a loan after all and any loan I have taken I have had to sign a direct debit form, why do you think it would be any different here?
I would be very surprised if this payment was left to rely on someone pushing a button like paying a supplier in which case I think that any late payments should be reporting as it suggests that there wasn't any funds available to make the direct debit payment.
I would be surprised if it was DD personally, but its certainly a possibility Businesses like DD's because it puts them in charge of getting the money, ie they are in control (bar ability for the bank to refuse the payment). They do this as it also massively reduces the back office functions. Its precisely this reason in regards control that means that B2B DD's are so rare. I would be genuinely interested in MT would comment on whether some/a lot/most/all are in fact DD's or not
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robski
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Post by robski on Aug 30, 2017 12:16:27 GMT
Some advice from my old man was to always pay invoices as late as you can get away with as it improves your cash flow. Maybe those that pay late are actually the business savvy ones who are less likely to default? Absolutely, holding onto your cash as long as possible is in effect funding your business for free. Eg supermarkets have often sold the goods before they pay for them. They have very little if any of their own capital invested in stock in their shops, the vast majority of the capital investment is their suppliers. In the old days of gas elec etc before the discount on DD made it worth it, (or now the penalty for cheque payment), any sensible person would only pay the bill when the red letter arrived, about 3 weeks after the first bill.
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toffeeboy
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Post by toffeeboy on Aug 30, 2017 12:28:48 GMT
I would be disappointed to find out that the borrower is having to do anything, I might be wrong but I would have hoped that MT would have a direct debit in place to collect the money from the borrowers this is a loan after all and any loan I have taken I have had to sign a direct debit form, why do you think it would be any different here?
I would be very surprised if this payment was left to rely on someone pushing a button like paying a supplier in which case I think that any late payments should be reporting as it suggests that there wasn't any funds available to make the direct debit payment.
I would be surprised if it was DD personally, but its certainly a possibility Businesses like DD's because it puts them in charge of getting the money, ie they are in control (bar ability for the bank to refuse the payment). They do this as it also massively reduces the back office functions. Its precisely this reason in regards control that means that B2B DD's are so rare. I would be genuinely interested in MT would comment on whether some/a lot/most/all are in fact DD's or not Maybe I am wrong then but I would expect that given the type of supply made by MT that they would stipulate the need for a DD the same way a bank would, this isn't someone supplying a service or materials on a regular basis it is a financial service that needs some guarantees that the money will be paid. I know the borrower can cancel the DD whenever they want but I would expect one to be set up in the first place.
MoneyThing, an answer to whether or not a direct debit is required or not would be most welcome.
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robski
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Post by robski on Aug 30, 2017 12:35:38 GMT
I would be surprised if it was DD personally, but its certainly a possibility Businesses like DD's because it puts them in charge of getting the money, ie they are in control (bar ability for the bank to refuse the payment). They do this as it also massively reduces the back office functions. Its precisely this reason in regards control that means that B2B DD's are so rare. I would be genuinely interested in MT would comment on whether some/a lot/most/all are in fact DD's or not Maybe I am wrong then but I would expect that given the type of supply made by MT that they would stipulate the need for a DD the same way a bank would, this isn't someone supplying a service or materials on a regular basis it is a financial service that needs some guarantees that the money will be paid. I know the borrower can cancel the DD whenever they want but I would expect one to be set up in the first place.
MoneyThing , an answer to whether or not a direct debit is required or not would be most welcome.
In my experience businesses don't like DD generally, but smaller ones can often be forced into it. Leases would probably be the area where more than often suppliers would push for DD's to be in place. It often comes down to who wants what more at the end. I wouldn't be surprised if there is a mixture to be honest. I am not sure if MT would deem it commercially sensitive to disclose this.
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Post by elephantrosie on Aug 30, 2017 17:32:24 GMT
i am getting more suspicious of the number of loans MT has been paying out of pocket with the delayed reply.
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fp
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Post by fp on Aug 31, 2017 6:18:34 GMT
i am getting more suspicious of the number of loans MT has been paying out of pocket with the delayed reply. That's just naivety getting the better of you.
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elliotn
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Post by elliotn on Sept 7, 2017 17:05:58 GMT
i am getting more suspicious of the number of loans MT has been paying out of pocket with the delayed reply. You'll have to have a scan through, the loan structure details are up to date. Of 15 loans, I had 7 serviced by the borrower, 5 by MT and 3 with partial retained interest. One benefit is the ltv can come in lower if it does not include the interest element, the main risk will be ongoing pressure on MT reserves should loans not complete on time or the loan book scales up. They stopped prefunding loans themselves before going live on the platform to take pressure off the BS to ease fca concerns although this cashflow commitment seems compatible with the new t&c.
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bababill
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Post by bababill on Jan 12, 2018 15:42:46 GMT
I err on the side of being informed of such things, perhaps not as forcefully as some, but regardless is this not already a MoneyThing commitment under the current terms and conditions? Section 12.1: "If a Borrower misses a payment on a Loan or only partially pays the amount due to you as a Lender Member, you authorise us, acting on your behalf, and we undertake to, contact the Borrower to attempt to collect an amount equivalent to the outstanding payment and any additional fees and charges due under the relevant Loan Contract. We will keep you informed of the progress of the attempts to collect the outstanding payment(s)"Good point regarding the above. It seems this has not been done with all the serviced loans.
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elliotn
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Post by elliotn on Jan 12, 2018 16:12:16 GMT
I err on the side of being informed of such things, perhaps not as forcefully as some, but regardless is this not already a MoneyThing commitment under the current terms and conditions? Section 12.1: "If a Borrower misses a payment on a Loan or only partially pays the amount due to you as a Lender Member, you authorise us, acting on your behalf, and we undertake to, contact the Borrower to attempt to collect an amount equivalent to the outstanding payment and any additional fees and charges due under the relevant Loan Contract. We will keep you informed of the progress of the attempts to collect the outstanding payment(s)"Good point regarding the above. It seems this has not been done with all the serviced loans. "We will keep you informed of the attempts to collect the outstanding payments" - an excellent condition.
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bababill
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Post by bababill on Jan 12, 2018 22:15:48 GMT
Would this make the platform liable for any shortfall as they have not abided by their previous terms and conditions?
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michaelc
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Post by michaelc on Jan 28, 2018 17:27:35 GMT
Worrying that their own t&c are possibly not being followed and also that such terms around transparency should be a requirement to obtaining and maintaining FCA regulation.
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