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27-05-2017, 06:43 PM
#2221
Junior Member
I did have a search through the forum but couldn't find much specific experience.
What has been peoples experience with the tail end of Harmoney collection process and recovery process. After a year of conservative investing in A's and B's starting to hit first persistent arrears - I know for many of you that's good going but the already lower than platform returns will take a hit.
I appreciate this is all unsecured lending but with A's and B's the borrowers often significant assets even if our claim may be last in a long line. What is the Harmoney recovery effectiveness (if any) like? Harmoney t&c's simply refer to "an outsourced recoveries team. If applicable, Harmoney will also begin legal proceedings." Any experiences from the longer serving and members here?
Thanks
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27-05-2017, 08:17 PM
#2222
Member
It makes one wonder how hard Harmoney (or its outsourced recoveries team) tries to recover money when the expectation for investors to experience defaults is already there. It's normal for every investor to have defaults so why bother trying hard.
The other question I have is, are borrowers who've defaulted on their Harmoney loans previously allowed back on the platform in the future?
Last edited by icyfire; 27-05-2017 at 11:54 PM.
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27-05-2017, 09:07 PM
#2223
What annoys me is that there is no explanation from Harmoney for each default as to how or why they defaulted and to what effort they made to recover the debt.
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28-05-2017, 12:25 AM
#2224
Member
Originally Posted by 777
What annoys me is that there is no explanation from Harmoney for each default as to how or why they defaulted and to what effort they made to recover the debt.
I have noticed today that one of my defaults has gone current again, but the $ default total remains as it was before. I have looked at the loan but can not figure out what the story is!
Loan 78054 anyone else have the same?
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28-05-2017, 12:30 AM
#2225
Junior Member
I assume that Harmoney are losing their share of fees off lost future payments so they do have some incentive.
However, from my cynical side - what stops Harmoney doing very little, setting the loan status to "charged off" in the investors books then in time recovering or selling off the loan and not reporting it back to us.
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28-05-2017, 08:58 AM
#2226
Originally Posted by permutation
I have noticed today that one of my defaults has gone current again, but the $ default total remains as it was before. I have looked at the loan but can not figure out what the story is!
Loan 78054 anyone else have the same?
Has it ( or any of your written off loans) got a balance in the "recovered principal" box.
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28-05-2017, 09:11 AM
#2227
Originally Posted by 777
Has it ( or any of your written off loans) got a balance in the "recovered principal" box.
Unfortunately I have never had the luxury of that happening on my HM account - Even thought I have a collection of Written Off loans
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28-05-2017, 09:45 AM
#2228
Member
Originally Posted by 777
Has it ( or any of your written off loans) got a balance in the "recovered principal" box.
I have not received 1 cent in the "recoveries" Box!!
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28-05-2017, 09:54 AM
#2229
yeah, nah
The Investor Agreement, https://www.harmoney.co.nz/how-it-wo...stor-agreement, actually covers a lot of what has been asked in some of the recent posts. Clauses 55 - 62 in particular on Rights and Collection Services.
You can't really expect Harmoney to tell each investor what is done on each individual loan recovery, can you? They are not allowed to provide any specific details and it's carried out by a collection agency. General details of the process are provided by Harmoney, that's about all you could reasonably expect? They are not going to spend more money on recovery than they are likely to get back - if they did, you still wouldn't see anything and Harmoney would be throwing good money after bad (and would likely have to increase their fees)...
Harmoney are required to pay to the Investor any recovered money above the cost of recovery. They are not sneakily going to take this off you - that is in the agreement. Do you really think Harmoney would risk it's business by doing something like that?
By investing in Harmoney, you take some risk, this is it, you accept it when you sign up...
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28-05-2017, 10:18 AM
#2230
Member
Originally Posted by permutation
I have noticed today that one of my defaults has gone current again, but the $ default total remains as it was before. I have looked at the loan but can not figure out what the story is!
Loan 78054 anyone else have the same?
Yep - I have that one too and have noticed the same as you. I presume that Harmoney will get around to transferring the charged off amount back over to the ppl due column shortly by reversing the charge-off, the recent payment received has created a negative principal amount.
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