Harmoney

[axe]

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.

I would guess most of the defaults would occur in the first year also?

[IntheRearWithTheGear]

If a loan defaults 58% of them happen happen in the first year.

Source - https://www.harmoney.co.nz/investors/investment-risks

i pulled the numbers from it and fitted the graph to their picture.

[777]

From the papers

http://www.stuff.co.nz/business/8006...risk-they-take

[humvee]

Can some one check my maths on this - because to me it does not add up. Issued over 1 year ago the interest alone should have been $7+ How is it so little in arrears - with so little paid?

Attachment 8046

[Darchie]

I say gross interest should be roughly $7.93 .. so minus whats received. Arrears should be more like approx $4.91

[Saamee]

Can some one check my maths on this - because to me it does not add up. Issued over 1 year ago the interest alone should have been $7+ How is it so little in arrears - with so little paid?

Attachment 8046

Because the loan has been in default for a long time ( 1 Year ) ALL the payments have been processed against Interest Only....

Only there have been SO FEW payments made that there has been so little Interest Paid over the last 1 Year...

Expect this loan to be Written Off soon - not great news but that's business!!

[RMJH]

Can some one check my maths on this - because to me it does not add up. Issued over 1 year ago the interest alone should have been $7+ How is it so little in arrears - with so little paid?

Attachment 8046

Agree makes no sense at the interest rate shown. Perhaps they came to an arrangement (a lower rate or interest holiday) because the borrower was struggling. Sometimes that is the best way to manage a poor loan. Pretty sure that I have noticed this before. Unlikely to be a computational error.

[humvee]

Agree makes no sense at the interest rate shown. Perhaps they came to an arrangement (a lower rate or interest holiday) because the borrower was struggling. Sometimes that is the best way to manage a poor loan. Pretty sure that I have noticed this before. Unlikely to be a computational error.

I can understand that happens but if that is what has happened shouldnt harmoney show that information to investors? based on info shown currently it does not make sense.

if that is the best way to recover the most money i dont have a problem with it. but that information should be openly shared with investors

[777]

One wonders where the $6495 monthly income goes.

[Kelvin]

Nice one Harmoney...
Capture.jpg