Harmoney

[Bjauck]

It is not necessarily a particuarly accurate comparative gross return however depending on level of charge-offs, their deductibility and the average amount earning no interest in your account. I am not sure how difficult it would be for Harmoney to provide a customised Net RAR for investors. I would have thought that it would be quite simple to provide a calculation, with investors selecting their RWT rate and whether or not they want charge-offs to be tax deductible. The resultant net figure could then be easily grossed up using your selected RWT rate to provide a figure for comparison with other investments. Harmoney have all the figures for their investors. Along with notifying their RWT, Investors could tell Harmoney whether or not they want charge-offs to be deductible for the calculations.

Excluding money in the non-interest bearing account, I have calculated that the (gross) RAR supplied by Harmoney may be reasonably accurate for those business investors who can (DYOR) deduct for tax purposes the charge-offs that they incur. As Harmoney promotes and offers itself as a Peer-to-Peer investment, would it not be more fitting for it to calculate its RAR making an adjustment for the fact that investors,who are not in business, cannot (DYOR) deduct their charge-offs? (Guidance from the IRD for this type of investor in this new investment type would be nice!)

Harmoney already conduct calculations using personalised RWT rates, so they would probably be capable of personalising Charge-off deductibility and providing the calculations for individual net RAR and grossed up RAR. For a 33% tax rate, according to my calculations, non-deductibility of charge-offs can approximately lower gross RAR by 0.25% per 5% of gross interest "expensed" by charge-offs. So charge-offs comprising 30% of gross interest approximatey lowers the grossed-up RAR by 1.5% for those who cannot deduct them for tax.

[Cool Bear]

heaps of writeoffs today!

[humvee]

heaps of writeoffs today!

holy heck today I have been slaughtered with writeoffs

[humvee]

Alot of the written off loans were issued this year with not a single repayment too.

[humvee]

This weeks write offs alone have been enough to knock 3% Per annum off my returns made since day 1

[CR111]

My last six written off loans have some amazing similarities. Almost to the point of not being believable. All six borrowers had the same income, within a $1 a month. All six said the money was for their further education. All six were taken out in January or February this year. All six had the same monthly payment, but I guess that was due to them all being the maximum loan amount.

[777]

My last six written off loans have some amazing similarities. Almost to the point of not being believable. All six borrowers had the same income, within a $1 a month. All six said the money was for their further education. All six were taken out in January or February this year. All six had the same monthly payment, but I guess that was due to them all being the maximum loan amount.

And no doubt all six had no intention of paying them.

[Darchie]

Yeah i too had 4 written-off today & all were taken out January or February, so all quite young ... but comparing each loan listing against each other highlights they're so similar that I'd say they've all been taken out by the very same person ... I'm told by Harmoney that they are fraudulent! In an earlier contact with Harmoney they did say that a couple of my arrears were a case of "Fraud. Full ID takeover. Under police investigation"
All my 4 were F grade.
About the only positive i can get is; it's help lower my arrears, which seem to be rather high these days ... i wonder if more of my arrears that have paid zero will also get written-off. ... it hurts the yield alright!

[humvee]

Lai-00055146
lai-00054117
lai-00054100
lai-00053612
lai-00053274
lai-00052943
lai-00052647
lai-00052256
lai-00051494

[Cool Bear]

My 4 write offs have almost identical borrowers comments. Mark of Harmoney confirmed that it is a fraud and "The perpetrator has been caught by the police and will be facing charges. They not only got away with Harmoney loans but banks and finance companies as well."