Squirrel Money P2P

[Mickey]

Even with the explanation in an earlier post from the Ops Manager - I'm still finding the 2% fee rather ambiguous. I've just checked the Terms and Conditions on the site and it states the following:

"Service Fee means the fee payable by the Investor and deducted from interest payments made by the Borrower under the Loan Agreement equal to 2% of the outstanding Loan balance per annum as amended from time to time;"

This clearly states that the Investor is responsible for paying a fee. If this is not the case (as per above) - then the T's and C's need to be amended as I'm not prepared to sign up to Squirrel while it is worded this way.

I see that JB is a visitor to this site and so perhaps an authoritative statement from Squirrel could be provided here regarding this.

[JB@Squirrel]

Hi Mickey

I know this is a bit of a pain on the wording and something we've debated and continue to debate with our lawyers.

As for Authoritative statement here goes ...

The Borrower interest rate is determined by taking the investor rate plus a risk premium (specific to the riskiness of the loan that is paid into the reserve fund) and our platform margin of 2.00% per annum.

The 2.00% margin along with a risk levy are deducted from the gross borrower repayment each month and the balance paid to the investor. Both are a % of the loan outstanding and deducted prior to paying the investor.

The rate an investor signs up for when they invest is the interest rate they receive. There are no deductions from this. Currently this is sitting between 8.00% and 9.00%.

We have a number of improvements we're putting around this over the next month to simplify our bidding processes and I'll look to further tidy this disclosure up at the same time.

Hope this clarifies.

Cheers, JB

[Mickey]

Hi Mickey

I know this is a bit of a pain on the wording and something we've debated and continue to debate with our lawyers.

As for Authoritative statement here goes ...

The Borrower interest rate is determined by taking the investor rate plus a risk premium (specific to the riskiness of the loan that is paid into the reserve fund) and our platform margin of 2.00% per annum.

The 2.00% margin along with a risk levy are deducted from the gross borrower repayment each month and the balance paid to the investor. Both are a % of the loan outstanding and deducted prior to paying the investor.

The rate an investor signs up for when they invest is the interest rate they receive. There are no deductions from this. Currently this is sitting between 8.00% and 9.00%.

We have a number of improvements we're putting around this over the next month to simplify our bidding processes and I'll look to further tidy this disclosure up at the same time.

Hope this clarifies.

Cheers, JB

Thanks JB - appreciate you taking the time to respond

[AppleCrumble]

Be interesting to see a comparison with harmoney for value/fees,if anyone is interested?

[AppleCrumble]

Can anyone explain the establishment fee of 250/500.does the lender or squirrel get that? Seems a bit steep?Tks

[unhuman]

Squirrel gets that. Its cheaper than Harmoney which has a minimum 300.00 fee for unsecured loans (Harmoney have faced pressure over their fees).

Has anyone seen any loans to invest in yet?

[humvee]

Looks like the site is having problems at the moment. No matter what i do in dashboard i get the eŕror below

"Something went wrong

Something went wrong, best to go back to the page you just came from and try again."

[Saamee]

I withdrew my 1K inital funding on Friday. Fed up of checking in and NO loans to see and pick from. Will give them time to mature before trying again.

[humvee]

This Was Just sent out in the Squirrel News letter today

https://www.squirrelmoney.co.nz/market-place/



This here is old - but I had not found it before today


https://www.squirrelmoney.co.nz/cred...eport-month-1/

its interesting to see that only 10.5% of their loans are secured

[jallison]

Very much so,Doing this with Lending Crowd as there is a similar problem there