Behind pay wall.
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I always thought that my writeoffs (or charge off) as a percentage of gross interest is very high at 21.1% (20.8% after recoveries). That was because my spreadsheet estimated it as just below 10% based on Harmoney's figures. However, I just noted that based on Harmoney statistics today - total charge off $19,076,967 and total interest paid $86,179,074 (10 Dec), the actual overall ratio is a very high 22.14%. So mine is actually below the average!!
Another case of successful fraud at Harmoney.
Grade D3, borrowed $30,000, never made a payment yet supposedly earned $147,000 per annum after tax. Loan comment "This is going to give me an amazing family holiday." I guess I should have avoided loans for holidays - especially to people who earn enough to pay cash for their holidays! Also was a rewrite - Harmoney claims that rewrites are only available to borrowers with an excellent payment history yet this guy hadn't even made a payment before getting a rewrite increasing his loan from $6k to $30k!
Attachment 9330
Do any of these get to court?
I've never heard of one making it to court. In this case Harmoney got their $1000 lending fees paid by the investors - the only losers of the $30,500 are the investors so I guess Harmoney isn't too worried about chasing it.
It's also possible that the guy was jailed on other charges (maybe his amazing income was from selling meth) and now he's having that "amazing family holiday" in the can.
Not a pretty picture, increasing risk and diminishing returns in a goldilocks economy - RAR falling, 15% fees, 22% arrears, 25% tax approx. Looks like screening not stringent enough at Harmoney.
Harmoney today have emailed saying they will on sell the charged off loans to a third party.
I cant see this as good as the incentive is gone for Harmoney to chase loans in arrears. Previously it was in Harmoneys best interest to keep arreared loans under control so the charged off department had less work.
Now nothing stops them giving up, throwing it into charged off then onselling that loan.