Originally Posted by
humvee
Its not just A & B Grade hit hard by this - if you look back at the interest increase a number of F grades got little or no interest rate increase either. Also what people forget is the high interest rates on E & F grade loans is because of the higher risk of default. Harmoney will be taking a massively larger cut of the interest we receive for taking this risk, yet they incur no extra risk them selves
Fee increase for a F5 Grade was 910% Fee increase for a E5 works out at 890%
I cannot remember the others off the top of my head but the interest rate increase for a f5 was 0% and for a f4 was 0.01%
So for me it will most likely mean I wont invest in A, B , E or F grade any more - so I need to decide if its worth continuing for only C & D Grade.
I don't have a problem with the change to the new method if calculating fees - the new way is the best way to do it - they have simply set the fee % too high. If they set it to 10% it still would have been an increase for most, but would be much more reasonable and inline with other P2P players in the market