Harmoney

[humvee]

Have just calculated what I consider the true service fee on my account (fee as a percentage of gross interest received) and find it at 5.86%. Those re-writes certainly make the stated fee of 1.25% unrealistic.

I dont agree with how harmoney handles the fee on rewrites but if your fee as a % of interest is only.5.86% then that is lower then what lending crowd charge. Here is what lending crowd charge.

"Interest flex

Investors are charged a service fee of 10% of the interest Lending Crowd collects or recovers under any loan agreement. This fee is charged each time interest is paid into an investor's account and will show on an investor's transaction statement as interest flex."

[mlt322]

if your fee as a % of interest is only.5.86% then that is lower then what lending crowd charge. Here is what lending crowd charge.

Oh, I do agree completely. I do understand that Harmoney charge their fee based on P&I repaid so no surprises really. I just like to compare the true return on my investment and as Humvee says, 5.86% is still much better than Lending Crowd's flat 10%.

I would still prefer a higher service rate charged on just interest received rather than the current 1.25% of P&I. By the sounds of it, this could be happening this year.

[Saamee]

Good comments... Always remember there is a price to pay for Security... or not Security... The main difference between Harmoney & Lending Crowd!

[Darchie]

I dont agree with how harmoney handles the fee on rewrites but if your fee as a % of interest is only.5.86% then that is lower then what lending crowd charge. Here is what lending crowd charge.

"Interest flex

Investors are charged a service fee of 10% of the interest Lending Crowd collects or recovers under any loan agreement. This fee is charged each time interest is paid into an investor's account and will show on an investor's transaction statement as interest flex."

Remember though humvee; Lending Crowds fee is on secured loans.
Harmoneys is unsecured lending, with these continual rewrites & possible extra defaults could over time make their fee unbalanced when compared to the other P2P platforms.

[Saamee]

As others have stated > Harmoney's 1.25% is on both Principle & Interest where Lending Crowds 10% is only on the Interest!

[humvee]

As others have stated > Harmoney's 1.25% is on both Principle & Interest where Lending Crowds 10% is only on the Interest!

Yes - but the calculation mlt322 has done has shown in his case the fee is the same as it would have been if he was charged 5.86% of interest payments only - so it is a fair comparision

Dont get me wrong I think how harmoney calculates their fee particularly around rewrites lacks transparency and honesty and creates a conflict of interest or a "moral hazard" depending on how you look at it. All i'm saying is the final result is not as bad as what I expected it to be or what other P2P providers openly tell you it will be on their platform.

[777]

I take it that you all completed their survey recently asking for opinions?

[Darchie]

I take it that you all completed their survey recently asking for opinions?

Absolutely. ... but have since thought of more that I should have added!

[humvee]

I take it that you all completed their survey recently asking for opinions?

yes i did.

[Cool Bear]

as mentioned in an earlier post, my spreedsheet works out what the effective service fee is for me due to the re-writes. At the moment it is 2.66% instead of the stated 1.25%. MLT32 and many of the above posters are correct that to compare to Lending Crowd, we should just take the service fee as a percentage of the interest received. Mine is 4.68% which is cheaper than lending crowd's 10%

Yes, one is supposedly secured and the other is not. But then that risk is taken care off by the different interest rates.

I am also invested in Lending Crowd but in a much smaller way than in Harmoney. I guess time will tell which is a better investment. It will have to be at least 18 months. Of course, the real test will come when the economy goes down the drain and I hope we do not have to experience that!