Harmoney

[kiwi_on_OE]

I have invested 1 note $25 in one of these new "pp" loans. The outstanding principal on this loan shows $26.29, so I figure this will be the extra amount I will receive if the note goes the full term.

Thx for confirming that the fee has been reflected in the principal. Can you confirm which of the PP Pricing categories the loan is in, so that I can work out what fees Harmoney have deducted?

"Payment Protection" seems to be a misleading description. I wonder if they will use it on their advertising.

I agree with Darchie about PP not offering much. It seems to have it's costs/benefits around the wrong way - if the lender repays correctly I'll get paid more than normal, if they have some problem I agree to be paid less. If normal insurance was involved I would expect to receive slightly less if the loan was repaid normally, and to receive a payout if the loan got into trouble.

It's good that Harmoney have provided this sort of thing, for those that want it, and they do a lot of stuff better than others, but at the same time they seem to shoot themselves in the foot with bad communications and strange features.

[Darchie]

Harmoneys systems with repaid loans seem to be rather clogged at present .. i still have 18 loans sitting in repaid status, but I'm yet to receive funds.

[permutation]

Thx for confirming that the fee has been reflected in the principal. Can you confirm which of the PP Pricing categories the loan is in, so that I can work out what fees Harmoney have deducted?

The loan is for partial cover and it is a 60 month loan. The payment protection fee: says $1.98, I have $1.29 added to my outstanding principal total $26.29 so I guess the remaining 69c. goes to Harmoney if the loan runs it's entire duration.

What I don't understand is, that if the borrower defaults on this loan then will I lose all my principal that hasn't yet been repaid anyway???

[kiwi_on_OE]

The loan is for partial cover and it is a 60 month loan. The payment protection fee: says $1.98, I have $1.29 added to my outstanding principal total $26.29 so I guess the remaining 69c. goes to Harmoney if the loan runs it's entire duration.

What I don't understand is, that if the borrower defaults on this loan then will I lose all my principal that hasn't yet been repaid anyway???

Thx permutation. 69c of $1.98 seems to match their statement that their fee would be 15% + 20% ie. 35%. But the $1.98 doesn't seem to match with the table on their website saying it would be an 8.18% fee ($2.045 on $25) for an individual taking partial cover on a 60 month loan.

Have I got the maths wrong, or do I not understand what Harmoney are doing? (doing some tests, it looks a bit like the fee is rounded to the nearest $25)

I was thinking about these loans. They actually seem to be a way of increasing the riskiness of a loan from our perspective, as we agree not to require repayments in certain circumstances. Harmoney could've chosen to increase the interest rate, as is normally done when a loan is assessed as riskier. But I can understand why they preferred to take their fee upfront.

Perhaps there's a business opportunity for a new type of P2P model - charge everyone interest at 5% and then an upfront fee that is added to their loan to account for the borrower's riskiness. Maybe $5 on a $25 A1 loan and $30 on a F5 loan.

I'm also a bit surprised that the "full cover" fee isn't somewhat dependent on the borrower's category, or am I wrong to assume that risky borrower's are more likely to be made redundant?

I wonder if Harmoney will ever try to clarify this feature for us?

[humvee]

So I lose $2.39 - of my principle in fees and get no interest

Harmoney-take-full-fees-on-payment-protect-loan-thats-paid-of-in-under-a-month.JPG

[permutation]

So I lose $2.39 - of my principle in fees and get no interest

Harmoney-take-full-fees-on-payment-protect-loan-thats-paid-of-in-under-a-month.JPG

Hi Humvee,
So your principal amount is -74 cents. So how are you losing $2.39
I am wondering if on your homepage, have you had a Lender rebate.?

I believe that Harmoney should compensate the Lenders say in the first 3 months the full amount because there is no ethical reason, in my opinion, why there should be any fee grab upfront for pp if the borrower decides not to play ball and repays the loan extremely early for whatever reason.

[humvee]

Hi Humvee,
So your principal amount is -74 cents. So how are you losing $2.39
I am wondering if on your homepage, have you had a Lender rebate.?

I believe that Harmoney should compensate the Lenders say in the first 3 months the full amount because there is no ethical reason, in my opinion, why there should be any fee grab upfront for pp if the borrower decides not to play ball and repays the loan extremely early for whatever reason.

I'm not really sure how the -$0.74 comes about. But I have been charged fees of $2.39 for Harmoney to manage the payment protect service.

[kiwi_on_OE]

I'm not really sure how the -$0.74 comes about. But I have been charged fees of $2.39 for Harmoney to manage the payment protect service.

Reinforces my thoughts to avoid these loans for now. I'll wait until they explain them more clearly, and/or I learn from others experiences. I'm sorry for you that your experience has helped me, but thx. :-(

I was going to make comments about the fees, but I don't fully understand what Harmoney are saying on their website. I do understand that the 20% commission stays with Harmoney, but the 15% management fee is rebated. So I might assume/guess that the borrower gets back 80% of the PP fee and you lose 20% of the PP fee.

In permutation's example it appeared they added the net fee to the principal, but in your case it looks like it may have been the gross fee, although it isn't consistent with their fee percentages as far as I can tell.

I'll be interested to know what response they give you when you ask for clarification of exactly what has happened.

[kiwi_on_OE]

Are your arrears total figures accurate? The figure on the dashboard is over double what it is when I add up each individual one. Has been like this for 2 months+

My dashboard arrears is now significantly more than the sum of the individual arrears.

[mjplost]

My dashboard arrears is now significantly more than the sum of the individual arrears.

I emailed them and got it sorted, mines accurate now.