On a benefit with a monthly income of $ 4000 , there is a TUI ad right there....... This is another loan that surely does not comply with the responsible lending code.
What verification do they do on the income ???
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Well, that assumes you tell WINZ you are living with parents.. and also excludes other possibilities, ACC payments based on someone on a good income struck down by disability being the obvious one.
But yes, I saw that loan.. grabbed my 10 foot barge pole and pushed it away.
At this risk of defending this I have a piece of that loan, mainly for information purposes. If HM is doing its job, then there should be zero difference in the performance between of "loans that look bad on paper", when compared to other loans of equivalent grade. So have started tracking these fugly loans, its early days but so far they have 0 defaults on $500 interest earned with about 6k active. The rest by way of comparison has a default rate of just under 10% of 16k interest, and have had some lovely looking loans turn sour. That said there are some loans that just wont touch .
(BTW - fugly portfolio has average income repayment ratio of 28%; rest has 8%)
Well I got my first loan write off. A grade, with house and never a payment made. Who would have thought it!!
Attachment 10934
Maybe I should just go for the F grades and get a better return if H can't get money out of someone with a house.