Harmoney

[Dan@Harmoney]

That loan has updated again, the funds appear in my account now, but there is still the question of the payment date, and last payment amount.

Attachment 7947

Things just don't make sense with the date and last payment amount, at least not to me.

Hi Knot, Here's what happened with this loan account. I'll break it down into three parts:

Borrower Payments The monthly loan payments of $347.05 due on the 20th of the month, the first being due 20 Feb (I am using full loan amounts not your share of the loan for simplicity). The direct debit was rejected so the the borrower has made direct credit payments; one of $300.00 on 25/02 and another of $47.05 on 1/03. As the direct credit did not have the right reference and was not for the full loan amount it has taken some time to confirm the account and apply the payments. When the payments were applied on 21/3 the second payment was due so the the payment has only reduced the interest which is why you see the payment only against gross interest. The payment hierarchy for payments received is fees, interest, then principal so in this case the amount of interest owed in the first two payments was $531.84 of the $694.10 due (interest is a high proportion of of the total payment in early months of the loan), which is why the $347.05 received has only been applied to interest. If the second payment is received in the next few days a high proportion of the payment will reduce principal owing.

Arrears Status If the second payment of $347.05 is not received by 27 March (after the 7 day grace period, not allowing for easter) the account will go into arrears status.

Lender Dashboard The reason the $0.23 is not showing in your cash is that there can be a lag between when reporting updates and when cash is transferred. As the copy in the lender dashboard says "Timing of data updates can cause short-term variances between the dashboard and reports section."

Hope that helps.

[Bjauck]

...I notice that there is a lot of agitation on this board about the early repayment fees due to rewrites, suggesting that the LC model of a 10% fee on gross interest would be preferable. However whilst it does give certainty, in my case the Harmoney fees have been 8.66% of the gross for the last 12 months, so it could be a case of be careful what you wish for.

As a matter of interest, do you have charge-offs? If so, what % of your gross interest do they comprise?

[Knot]

Thanks for that. A good explanation. The 23 cents is still confusing to me because it was there before the rest. But I am not too worried.

[Cool Bear]

I notice that the Platform RAR has dropped from 12.59 to 11.66 in the last month. According to the website


I notice that there is a lot of agitation on this board about the early repayment fees due to rewrites, suggesting that the LC model of a 10% fee on gross interest would be preferable. However whilst it does give certainty, in my case the Harmoney fees have been 8.66% of the gross for the last 12 months, so it could be a case of be careful what you wish for.

I fully agree and had posted earlier that I had no problem with rewrites. My fees as a percentage of interest is currently only 4.72% and that is with all the rewrites. I agree that the rewrites do not make the fees transparent but I am happy with the current level of fees which is half of LendingCrowd . I am also with LendingCrowd as well as LendMe. Tried signing with Squirrel but found it too difficult and time consuming (investing via a company).

Note to Monica - not everyone is unhappy with the current fees!

[humvee]

I fully agree and had posted earlier that I had no problem with rewrites. My fees as a percentage of interest is currently only 4.72% and that is with all the rewrites. I agree that the rewrites do not make the fees transparent but I am happy with the current level of fees which is half of LendingCrowd . I am also with LendingCrowd as well as LendMe. Tried signing with Squirrel but found it too difficult and time consuming (investing via a company).

Note to Monica - not everyone is unhappy with the current fees!

I have also previously posted similar while how the fees work on rewrites is not a good look. At the end of the day the fees as a % of interest earned is acceptable and that is what really counts.

I am probably helped by the fact i generally only invest in D E F grades. Which have lower rewrite rates and higher interest rates.

[Saamee]

Here > Service Fee / Gross Interest ratio = 7.37% - Joined with HM AUG 15.

If I also add in the 1 write off to date, that rises to 8.6%

[Finite]

Here > Service Fee ratio = 0.0737% - Joined with HM AUG 15.

If I also add in the 1 write off to date, that rises to 0.086%

I'm sorry but that makes no sense to me.
Ratio of what to what?
Do you mean 0.0737 is the ratio which equates to 7.37%?

[Saamee]

I'm sorry but that makes no sense to me.
Ratio of what to what?
Do you mean 0.0737 is the ratio which equates to 7.37%?

Hi Finite If you have read the above posts you might have read NZTYKE talk about Harmoney Fees / Gross Interest = Net % Fees

[Bjauck]

...
I am probably helped by the fact i generally only invest in D E F grades. Which have lower rewrite rates and higher interest rates.

And presumably charge-offs make up a higher percentage of gross interest?

[Cool Bear]

Here > Service Fee / Gross Interest ratio = 7.37% - Joined with HM AUG 15.

If I also add in the 1 write off to date, that rises to 8.6%

Write offs is my main concern. So, my numbers are fees/interest = 4.75%, including my 16 writeoffs, then 16.5%!!