Originally Posted by
kiwi_on_OE
FYI. I won't be complaining to the FMA about this. I still think it is misleading/deceptive, and I'll add poorly explained. As I see it, Lenders have been the beneficiaries of the interest rate increase in Dec, not Harmoney. So this change is a way of paying a similar(?) NET amount of fees to Harmoney that they were getting pre-Dec. I guess this is implied, but not stated, by their example?
A couple of other things I noticed: -
1) The interest rates on A and B loans weren't increased in Dec, so they're badly affected by the change. D, E and F loans had Dec rate increases, so although the impact of this change in Jun is big, compared to Dec we're still ahead, just.
2) the 15%/17.5%/20% rates are assigned to the loans when they are taken out. So if you get to $10k+/$50k+ loans, they will be charged at different rates. But as the earlier loans are paid off/re-written the replacement loans will be charged at the lower rate.
3) 12k borrowers pa(?) @ $375 fee => $4-5m pa, $24m pa int @ 10%(?) fee => $2-3m pa. So they could be earning about $7m pa. I wonder what their costs are?