Harmoney

[Kelvin]

It's gonna hit the low grade loans really hard. Quick calculation suggests that investing $25 in a loan over 3 years with ~30% interest you will get ~$0.47 deducted under the current structure, under the new structure @20% you'll get ~$2.6 deducted in fees!!! Over 5x increase!!!

Lending Crowd, please increase your loan offerings so I can move over there with a much more reasonable 10% fee.

[rsmckee]

It's gonna hit the low grade loans really hard. Quick calculation suggests that investing $25 in a loan with ~30% interest you will get ~$0.47 deducted under the current structure, under the new structure @20% you'll get ~$2.6 deducted in fees!!! Over 5x increase!!!

Lending Crowd, please increase your loan offerings so I can move over there with a much more reasonable 10% fee.

Yes I just read the new lending fee structure - Not Happy.
scenario: $10K worth of loan @ 13% for 36 months.
Old fee structure would be: 10K principle + 3yrs of $1,300 = $13,900 @ 1.25% + total fee of $173.75!
New fee structure: 17.5% of $1,300 over 3 years = total fee of $682.50 !!!!
Now who are the winners here?

[Saamee]

Investors have got their wishes - From June 16 > No more Service Fees on Capital Repayments or on an Early Repaid Loan no 'Lump Sum' Service Fee on the Interest PLUS the Capital.

The Increases are also likely to do with Trade Me buying in! You only have to look at the Increases in Sales Fees over at Trade ME to see their influence here now!!

[Knot]

Bye Harmoney. Those fees are insane and unfair to smaller investors.

[Bjauck]

Maybe this is the result of some posters berating rewrites and being charged fees on the capital aspect of repayments? It sounds like Harmoney are planning to treble their fees for the average investor. Could Harmoney confirm this? If harmoney had started out with this fee structure, could thy tell us what how much more in investor fees they would have received?

[TazzieDave]

Bye Harmoney. Those fees are insane and unfair to smaller investors.

I'm with you.

[IntheRearWithTheGear]

Your math maybe wrong.

10k at 13% is $12130 in 36 months your out by $1770

[humvee]

Fee increase - Holy S..T


For simplicity sake all figures are based on a $100 Loan, No allowance made for late payments or writeoffs


F5 for 5 Years @ 39.99% Fee Was $2.91 Now $26.49
E5 for 5 Years @ 38.25% Fee Was $2.82 Now $25.12
D5 For 5 Years @ 30.24% Fee Was $2.44 Now $19.00
C5 For 5 Years @ 23.23% Fee Was $2.12 Now $13.99
B5 For 5 Years @ 16.48% Fee Was $1.84 Now $9.49
A5 For 5 Years @ 13.25% Fee Was $1.72 Now $7.46
A1 For 5 Years @ 9.99% Fee Was $1.59 Now $5.49

[humvee]

Fee increase - Holy S..T


For simplicity sake all figures are based on a $100 Loan, No allowance made for late payments or writeoffs


F5 for 5 Years @ 39.99% Fee Was $2.91 Now $26.49
E5 for 5 Years @ 38.25% Fee Was $2.82 Now $25.12
D5 For 5 Years @ 30.24% Fee Was $2.44 Now $19.00
C5 For 5 Years @ 23.23% Fee Was $2.12 Now $13.99
B5 For 5 Years @ 16.48% Fee Was $1.84 Now $9.49
A5 For 5 Years @ 13.25% Fee Was $1.72 Now $7.46
A1 For 5 Years @ 9.99% Fee Was $1.59 Now $5.49

So fee increases of 368% - 910%

[777]

I just hope Harmoney stay in business until I get my last lot of money out. I think they are dead in the water.

Their example was comparing an apple and an orange. Just upped the interest rate to until the advantage looks to be in the favour of the lender.