Harmoney

[scottwalshnz]

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've put in 10k over 400+ loans, mostly D and E. It's always about $10-40 in arrears, no defaults yet (but expect some to occur). Interest returned is trending towards where it should be.
From what I've read, with P2P lending you should be targeting highly diversified to ensure the forecasted percentages pan out, 400+ loans is a typically advised.

If you only hold a small number of loans, a couple of bad deals will significantly skew default rates for a loan portfolio.

[777]

Is anyone planning on deducting the service charge from the interest earned for your tax return. If so how are you going to work it out. The tax certificate is now available but the service charge is not included.

[Harvey Specter]

Is anyone planning on deducting the service charge from the interest earned for your tax return. If so how are you going to work it out. The tax certificate is now available but the service charge is not included.

I invest via a company and will be claiming it as a cost of doing business. The tax certificate only shows interest and tax per tax regulations.

Did anyone have any write offs during the year and if so, how are you treating them. I didn't in 2015 but have in 2016 and will almost certainly be claiming a bad debt deduction - I invest via a company and have over 100 loans so consider it part of the companies business (note the company is an investment company so investments is its business). Note: this was discussed earlier in the thread between Roger and me (I think) so probably best go back and read if you want general info on it.

[Beagle]

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.

Noodles, Yes you can certainly apply for a loan through a bank online but usually they're in a better position to do an identity check on you, (existing customer) and if you're not you'll find they've toughened up on new customers. Usually they want to see two original forms of identity in person to open a bank account, one a photo I.D. like vehicle licence and one a utilities bill for address verification, can't see why it would be different for new lending customers, so original documents in person is the key here to open a new account.

In years gone by it was easier, now they want to see things like a copy of your inland revenue assessments to confirm income...are Harmoney that thorough and do they want to see original identity documents in person ? Do they have access to your bank records or do they just ask for evidence of income, identity and bank statements to be scanned and sent via e.mail, in which case its not impossible to alter documents before scanning them.

The Jury is out on default rates and what they claim will be the average is something I'm suggesting is little more than just an outright guess and of course they are commercially motivated to guess on the light side so its hardly an independent estimate is it ! Do they guarantee those default rates and is there any comeback against Harmoney if they're wildly inaccurate...No, I didn't think so, no warranty that their representation in this regard is in any way reasonable means you have to treat it with a grain of salt. I'm "guessing" in your mind and others that makes me a real sceptic

[Markymarknz]

Noodles, Yes you can certainly apply for a loan through a bank online but usually they're in a better position to do an identity check on you, (existing customer) and if you're not you'll find they've toughened up on new customers. Usually they want to see two original forms of identity in person to open a bank account, one a photo I.D. like vehicle licence and one a utilities bill for address verification, can't see why it would be different for new lending customers, so original documents in person is the key here to open a new account.

In years gone by it was easier, now they want to see things like a copy of your inland revenue assessments to confirm income...are Harmoney that thorough and do they want to see original identity documents in person ? Do they have access to your bank records or do they just ask for evidence of income, identity and bank statements to be scanned and sent via e.mail, in which case its not impossible to alter documents before scanning them.

The Jury is out on default rates and what they claim will be the average is something I'm suggesting is little more than just an outright guess and of course they are commercially motivated to guess on the light side so its hardly an independent estimate is it ! Do they guarantee those default rates and is there any comeback against Harmoney if they're wildly inaccurate...No, I didn't think so, no warranty that their representation in this regard is in any way reasonable means you have to treat it with a grain of salt. I'm "guessing" in your mind and others that makes me a real sceptic

I signed up for harmoney and I recall being very impressed with the thoroughness of the online application process. I needed to have a webcam and it used facial recognition to compare me with my drivers license.

[ratkin]

Mine are all A B and C not even a late payment yet, but it has only been two months

[Beagle]

I signed up for harmoney and I recall being very impressed with the thoroughness of the online application process. I needed to have a webcam and it used facial recognition to compare me with my drivers license.

That's good but unfortunately fake drivers licences are a dime a dozen from any counterfeiter in China and many other countries. I'd like to know what other identification processes they used and how they verified your income, (assuming you applied for a loan rather than being an investor).

Mine are all A B and C not even a late payment yet, but it has only been two months

That's indeed a good sign but as you say its early days.

[Markymarknz]

That's good but unfortunately fake drivers licences are a dime a dozen from any counterfeiter in China and many other countries. I'd like to know what other identification processes they used and how they verified your income, (assuming you applied for a loan rather than being an investor).



That's indeed a good sign but as you say its early days.

Yeh good point I was applying as an investor so unsure how the loan side works. Just had a look on the website and it looks like you have to provide recent banking records and employment details. I assume these details must be able to provide some level of robustness in terms of verification...

https://www.harmoney.com/how-it-works/borrower-faq

I invested a very small sum and have not had any defaults or late payments to date (been around 6 months)

[Kees]

Same here "I invested a very small sum and have not had any defaults or late payments to date (been around 6 months) "
all good so far.

[scottwalshnz]

Is anyone planning on deducting the service charge from the interest earned for your tax return. If so how are you going to work it out. The tax certificate is now available but the service charge is not included.

I'm planning to. I emailed them, and they promptly returned a detailed activity report for the FY15.