Harmoney

[ruaboy]

I have been advised that the dashboard problem has been resolved and mine seems to be ok now.

I have been advised that mine is correct also but it isn't and hasn't been for some time . There appears to be no way of following what is happening to your account. I have asked for information as to how they arrived at their figures but only get sent more or less the same information as is on the dashboard. They have spent 2 days trying to find my last deposit, which is a day longer than it took to find the previous deposit. Just about over these people, good idea but haven't got the programs in place to run it

[black knat]

Interesting Harvey those two loan are my only write offs also. I made contact with them about the b3 and was told it was an exceptional circumstance where the guy had lost his job. They reckon they wold have made the same assessment on the loan is B3. I guess that sort of thing will happen sometimes - I have over 300 loans and don't expect or want to be involved in each one.

[Puggy]

Update for anyone interested, I put in $500 for a test and split it across a D1, E2, 2xE3, and and E4. To date I've had payments on three of them but the E2 and an E3 have already gone into arrears without a single payment.

Will be interesting to see how it goes, but at this point I'm not impressed with 2/5 going into arrears without a single payment.

[noodles]

I was talking to the Money3 (MNY.AX) CEO back in March. Money3 are the last resort for many Australians. He basically said that some people will simply not pay (for whatever reason). For Money3, they will not do business with them again. They make their money from return customers of whom they have a track record.

I wonder if the same applies to Hamoney? I.e. Harmoney need to weed out the bad borrowers in the first couple of years of operation. It won't be until then that Harmoney starts producing better returns for it's borrowees?

[winner69]

Update for anyone interested, I put in $500 for a test and split it across a D1, E2, 2xE3, and and E4. To date I've had payments on three of them but the E2 and an E3 have already gone into arrears without a single payment.

Will be interesting to see how it goes, but at this point I'm not impressed with 2/5 going into arrears without a single payment.

Perils of being a greedy money lender?

[Puggy]

Perils of being a greedy money lender?

No doubt. Could just be a couple of bad deals, and who knows, maybe they'll pay, but I'd be interested to hear from anyone with a broader investment how its going.

[Beagle]

People considering this would be wise to do some serious research on default rates in other operations run around the world.

Google p2p lending and p2p lending default rates and have a really good read on what's available on the net. What I have read concerns me.
Identity fraud when you remove the person to person loan application process of normal consumer financial channels is higher...its easier to commit fraud with documents scanned and sent by e.mail.
Just because Harmoney says the default rate is projected at a certain percentage doesn't mean it will be...think about all the vast numbers of consumer finance companies that went under in the GFC, now factor in additional delinquencies from identity fraud that's easier in a loan application process over the internet and then join the dots. This could be anything but a harmonious experience for investors but very harmonious for fraudsters.
I rate this thing as a speculative experimental form of investment, only after about three years will we really know what the true default and fraud rate is. I think there's enough early anecdotal evidence to put a prudent investor on alert but please keep your experience stories coming as only by sharing do we learn how this thing is going and I take an interest because of HNZ's investment through this channel.

[Soolaimon]

No doubt. Could just be a couple of bad deals, and who knows, maybe they'll pay, but I'd be interested to hear from anyone with a broader investment how its going.

I have 10k invested over around 140 loans and so far no defaults. Most of my loans are around the C1 to D4 range with a few more across the range. Nearly all 36 months. The arrears are fairly steady at $20-$35 and have been since I started back in Oct. There was a couple of months there when I was concerned about their web site but for the last 3 weeks it now seems ok. I withdrew $500 net profit 2 weeks ago and that was paid out in 1 day. There have been 12 loans paid off ( 2 with a small net loss to me) and I have re-invested them. Overall, I am happy with the performance at this stage and will probably increase my holdings.

[noodles]

People considering this would be wise to do some serious research on default rates in other operations run around the world.

Google p2p lending and p2p lending default rates and have a really good read on what's available on the net. What I have read concerns me.
Identity fraud when you remove the person to person loan application process of normal consumer financial channels is higher...its easier to commit fraud with documents scanned and sent by e.mail.
Just because Harmoney says the default rate is projected at a certain percentage doesn't mean it will be...think about all the vast numbers of consumer finance companies that went under in the GFC, now factor in additional delinquencies from identity fraud that's easier in a loan application process over the internet and then join the dots. This could be anything but a harmonious experience for investors but very harmonious for fraudsters.
I rate this thing as a speculative experimental form of investment, only after about three years will we really know what the true default and fraud rate is. I think there's enough early anecdotal evidence to put a prudent investor on alert but please keep your experience stories coming as only by sharing do we learn how this thing is going and I take an interest because of HNZ's investment through this channel.

Roger,
I want to challenge your assumption that p2p would have a greater fraud rate. If you want a loan through any NZ banks, you would do it on-line. Are you suggesting that banks have more checks in place or perhaps fraudsters would rather target Harmoney than a major bank?

Here is a NZ view:
http://www.interest.co.nz/opinion/70...ution-needs-be

I guess lenders are taking part in a bit of an experiment at this stage. It will take a couple before we know default rates at Harmoney.

[percy]

Roger,
I want to challenge your assumption that p2p would have a greater fraud rate. If you want a loan through any NZ banks, you would do it on-line. Are you suggesting that banks have more checks in place or perhaps fraudsters would rather target Harmoney than a major bank?

Here is a NZ view:
http://www.interest.co.nz/opinion/70...ution-needs-be

I guess lenders are taking part in a bit of an experiment at this stage. It will take a couple before we know default rates at Harmoney.

Thanks for posting the link to the very interesting article.