Harmoney

[unhuman]

Yes will only be dipping my toes into this with an immaterial investment.

However I do think its an interesting addition to a portfolio.

P2P lending seems to have done well overseas, so much so that all the big banks are now buying them up.

I note that HNZ is already a shareholder of Harmoney.

[McGyro]

Lets hope your toes don't get bitten off.
Banks got caught trading in deceptively packaged toxic debt around 2008. The P2P lending seems to lend itself (ha) to a similar marketable package. Hopefully my fears are unfounded and I've just been spending too much time hanging around conspiracy theorists.

[ScrappyO]

I put in $500 a couple of weeks ago spreading it out over 12 loans. One of the loans was nearly all paid back within 24hrs and the rest about week later. $75 was in that loan. I was charged 88cents and received no interest. So a loss to me straight away.
Since it was the only transaction I could see that I made a loss on that loan. I find the balances take there time to adjust and find it a little bit confusing.

[777]

I put in $500 a couple of weeks ago spreading it out over 12 loans. One of the loans was nearly all paid back within 24hrs and the rest about week later. $75 was in that loan. I was charged 88cents and received no interest. So a loss to me straight away.
Since it was the only transaction I could see that I made a loss on that loan. I find the balances take there time to adjust and find it a little bit confusing.

They should at least refund the 88c. Not much money but a principle is involved.

Email them.

[Mort]

They should at least refund the 88c. Not much money but a principle is involved.

Email them.

Was the 88c showing in your service fee? This will be the 1.25% of the principle & interest payments made to you (not 1.25% of the interest) if the loan is fully paid off within 5 days we get our principle back, with no interest as the borrower does not pay interest & no service fee applies.
I'd be interested in others thoughts though, the service fee is charged on every payment including a large payment that will fully repay the loan, e.g.I had $1000 in a loan that fully repaid after 61 days, I received $19 interest but will have been charged $13 as a service fee (I say will have been because the service fee is not shown against each loan, just as a portfolio total) I would have thought the fair way to charge a service fee would be on regular payments only. If a loan is paid off on say day 6, you would take a loss.
As I said, interested in thoughts.

[Harvey Specter]

As I said, interested in thoughts.

The service fee should definitely not exceed the interest in my opinion. A bit less clear in your situation.

I wonder if there should be 1.25% early repayment fee (at least in the first 12 months of the loan) so the net effect to the lender is 0. If we dont have the option to call the loan early, even at a discount, why do they have the option to repay at no cost?

[axe]

The service fee should definitely not exceed the interest in my opinion. A bit less clear in your situation.

I wonder if there should be 1.25% early repayment fee (at least in the first 12 months of the loan) so the net effect to the lender is 0. If we dont have the option to call the loan early, even at a discount, why do they have the option to repay at no cost?

Last I read of the borrower T's and Q's people can repay their loan early for no penalty.

[Beagle]

For what its worth my thoughts are that with all the dozens of finance company failures during the GFC what did we learn ? Basically a disturbingly large percentage of consumer credit goes bad in a GFC so in a GFC MK2 I'd expect lenders to get thoroughly belted. Makes this a fair weather investment only doesn't it ?

[newtrader]

As a sidetrack while we are on the topic of service fees. Other P2P platforms refund the investor the service fees charged if the borrower defaults.
I think this is a good incentive for the platform (e.g. Harmoney) to ensure their underwriting process is robust and not simply approving loans to get the loan origination fee upfront.

[ScrappyO]

[QUOTE=Mort;528822]Was the 88c showing in your service fee? This will be the 1.25% of the principle & interest payments made to you (not 1.25% of the interest) if the loan is fully paid off within 5 days we get our principle back, with no interest as the borrower does not pay interest & no service fee applies.


Hi Mort, yes the 88c is showing as a service fee. I received no interest.