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06-10-2017, 11:41 AM
#2771
Investor
Originally Posted by darrenc
I wonder whether 'payment protect' is misleading people with literacy issues into believing there are no consequences for not paying back the loan. NZ has about 40% of people defined as having literacy issues with 20.7% of people having level 1 literacy (this means they struggle to read and understand simple sentences). I would imagine, given the creative spelling of the majority of the reasons for the loans, that the proportion of people with literacy issues taking out Harmoney loans is quite a lot more than the average.
Since Oct 15 last year, 9 months after payment protect was launched, 8 of 13 of my charged off loans have payment protect, and I didn't typically invest in that many payment protect loans. "Payment protect" sounds like they are protected from consequences and, in a way, they are. The description is here: https://www.harmoney.co.nz/payment-protect/borrowers It covers terminal illness, which many people get, and your remaining loan payments are waived.
I've stopped investing in loans that have payment protect as my earnings from the protect rebates are $45.73 while the losses are $231.50. The recent spate of bad loans has taken my returns from around 17% down to 15% and I've been treading water for 3 months. I've stopped investing in anything over D2 since the rate changes. I'm 40% weighted in C with about 5% in A, 20% in B, 25% in D and 10% in E.
I agree that payment protect loans are best avoided. I have chosen to invest in them for the time being due to a lack in the supply of loans.
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06-10-2017, 01:28 PM
#2772
Member
Originally Posted by darrenc
I wonder whether 'payment protect' is misleading people with literacy issues into believing there are no consequences for not paying back the loan. NZ has about 40% of people defined as having literacy issues with 20.7% of people having level 1 literacy (this means they struggle to read and understand simple sentences). I would imagine, given the creative spelling of the majority of the reasons for the loans, that the proportion of people with literacy issues taking out Harmoney loans is quite a lot more than the average.
Since Oct 15 last year, 9 months after payment protect was launched, 8 of 13 of my charged off loans have payment protect, and I didn't typically invest in that many payment protect loans. "Payment protect" sounds like they are protected from consequences and, in a way, they are. The description is here: https://www.harmoney.co.nz/payment-protect/borrowers It covers terminal illness, which many people get, and your remaining loan payments are waived.
I've stopped investing in loans that have payment protect as my earnings from the protect rebates are $45.73 while the losses are $231.50. The recent spate of bad loans has taken my returns from around 17% down to 15% and I've been treading water for 3 months. I've stopped investing in anything over D2 since the rate changes. I'm 40% weighted in C with about 5% in A, 20% in B, 25% in D and 10% in E.
I don't get the same correlation. 10 of my 90 charged off loans (11.11%) had payment protect. 623 of my 4123 all time investments (15.11%) were payment protect loans.
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06-10-2017, 01:41 PM
#2773
Originally Posted by joker
Anyone else noticed that Harmoney's gone very quiet? Not many loans coming through ATM.
Don't have kidz at home anymore....
Just realized it's the 1st week of school holidays
It's quiet at Squirrel and Lending Crowd too.
Many Borrowing age parents away on holiday ( thanks to P2P loans already obtained? )
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06-10-2017, 01:46 PM
#2774
Investor
I disagree - Harmoney isn't that quiet. Seems to be averaging $600k+ per day still. I see plenty of loans each day.
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06-10-2017, 05:25 PM
#2775
Member
Originally Posted by Investor
I disagree - Harmoney isn't that quiet. Seems to be averaging $600k+ per day still. I see plenty of loans each day.
I was getting invested in 14 -18 loans per day now I'm struggling to get 10 despite increasing my auto-lend range. Went quiet in late Sept and hasn't recovered. There used to be big blocks of loan listings at 8am, noon and 6pm but not so much now. Also seem to be a lot of payment protect loans that I'm not keen to do. Can't understand why some of these people buy payment protect to be honest. Just a bigger millstone around their neck.
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06-10-2017, 05:47 PM
#2776
Member
Originally Posted by Cool Bear
Yes, I wonder if there is any investor here who had been in for more than 24 months and with a RAR of 15+%
Im at around 30 months - Signed up end of Jan 2015
and im at 15.69%
rar-2017-10-06.PNG
rargraph-sept2017.jpg
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06-10-2017, 07:13 PM
#2777
Member
Payment-Protect: Of the 1400 all-time loans over 31 months, 195 were PP. Started Oct 9 2016. Of these loans, 25% have been repaid.
Have had 3 charged off and currently have 3 in arrears.
I continue to invest in PP because over time, my RAR will be enhanced.
My Charged off amount has been reduced by 50% in $value by the effect of the current PP balance.
Last edited by permutation; 06-10-2017 at 08:04 PM.
Reason: correction to figures
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07-10-2017, 12:57 PM
#2778
Member
Is Auto invest working at present?
Previous weeks it was picking up loans for me but since 23 sept it seems to not have got any.
My ratio is improving each day as funds available is climbing so that cant be the issue. There appears to still be plenty of loans coming into marketplace too
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07-10-2017, 08:16 PM
#2779
Member
I put $2500 in on Thursday and got one $50 unit on Friday.
It is working, but I have really fine tuned criteria for Auto-Lend within a limited grade band, so I don't expect to get that many.
When I invest manually I relax my criteria more and use my, gut feeling, about borrowers so to speak; so I do get a few that way.
My RAR has slipped slightly last week to 14.43% due to 4 Charge-offs in the last month. I expect it to pick up again though.
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07-10-2017, 10:46 PM
#2780
Member
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