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16-05-2016, 10:17 AM
#1071
Member
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[/QUOTE]
Absolutewly Agree
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16-05-2016, 12:13 PM
#1072
Member
The thing I don't like is that the fee is on gross interest ie before charge-offs. Under the new fees there seems to be little financial incentive to go hard to recover capital on poor loans.
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16-05-2016, 03:27 PM
#1073
Member
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
These are the old and new rates with calculated difference. I don't have data for F ( I focus on A to D with more weight on A&B)
C1 |
18.52% |
17.15% |
1.37% |
C2 |
19.67% |
17.88% |
1.79% |
C3 |
20.82% |
18.59% |
2.23% |
C4 |
22.06% |
19.35% |
2.71% |
C5 |
23.23% |
20.03% |
3.20% |
Grade |
Interest Rate (p.a.) |
|
|
D1 |
24.41% |
20.59% |
3.82% |
D2 |
25.80% |
21.41% |
4.39% |
D3 |
27.12% |
22.14% |
4.98% |
D4 |
28.70% |
22.96% |
5.74% |
D5 |
30.24% |
23.81% |
6.43% |
Grade |
Interest Rate (p.a.) |
|
|
E1 |
31.81% |
24.66% |
7.15% |
E2 |
33.95% |
26.00% |
7.95% |
E3 |
35.33% |
27.18% |
8.15% |
E4 |
36.64% |
28.62% |
8.02% |
E5 |
38.25% |
30.36% |
7.89% |
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16-05-2016, 04:38 PM
#1074
Old "F"s
F1 31.88%
F2 33.93%
F3 36.01%
F4 39.61%
F5 39.99%
New "F"s
F1 39.22%
F2 39.36%
F3 39.61%
F4 39.98%
F5 39.99%
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16-05-2016, 05:51 PM
#1075
Originally Posted by RMJH
The thing I don't like is that the fee is on gross interest ie before charge-offs. Under the new fees there seems to be little financial incentive to go hard to recover capital on poor loans.
Agree. I think the service charge should be on gross interest only with a rebate for the service charge already levied on a note that is charged off. The rebate maximum would be the amount of the charge off. Later, if there is some percentage recovery of the charge-off then a corresponding amount of service charge could be re-instated.
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17-05-2016, 09:26 AM
#1076
Why, Oh Why do Harmoney have so many Errors and Inaccuracies in their Back End Computer Systems??
Has anyone else had the same Email today?
HM.PNG
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17-05-2016, 09:36 AM
#1077
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17-05-2016, 09:56 AM
#1078
Member
Originally Posted by Kelvin
I didn't get that email but I too have been noticing several errors and inaccuracies.
I've got a loan in Arrears but shows $0.00 in the Amount in Arrears section
No email about errors ever received here...
Arrears amounts have never crossed balanced or stacked up ever.....
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17-05-2016, 10:07 AM
#1079
Member
Originally Posted by Kelvin
I've got a loan in Arrears but shows $0.00 in the Amount in Arrears section
I've had that many times.
Harmoneys response : " the amount in arrears is less than 1 cent"
Last edited by Finite; 17-05-2016 at 10:46 AM.
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17-05-2016, 11:23 AM
#1080
Member
Originally Posted by Bjauck
Agree. I think the service charge should be on gross interest only with a rebate for the service charge already levied on a note that is charged off. The rebate maximum would be the amount of the charge off. Later, if there is some percentage recovery of the charge-off then a corresponding amount of service charge could be re-instated.
What makes it worse is having an interest based fee effectively front loads the charge because the early repayments are largely interest. For example on a three year loan just over half of Harmoney's total fees are earned in the first year so you are effectively pre-paying for the collection service.
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