Harmoney

[Knot]

I could almost accept the new fee if it included repayment insurance.

[TazzieDave]

What really gets me is not only have they tripled their effective fee (ignoring rewrites for the moment), but the "theoretical example" that they give is just an insult to the intelligence. See - 17.50% of bananas is about the same as 1.25% of apples. The only correct comparison is based on an investment made at current rates, not comparing with historic rates.

The cynic in me is now seeing that the rewrite double dipping was ALWAYS part of their business model. Now having seen how the investors reacted to it, they embarked on a medium term plan to make their returns more "honest" by changing the lender fees, but to do it in such a way that it doesn't appear too bad. Hence the increased rates in December for this theoretical example garbage.

Ok, I'll take my tin-foil hat off now but I'd love to hear some real justifications for the massive increases in fees. If they really want to grow the business I'd suggest a quick rethink before they alienate most of their current investors.

[Broke]

at least this wont take effect until mid-june. i guess investors got their wish, too much whinging on the re-writes.

I have yet to see how this new fee structure will work out.. if the returns are still around 12% I'd be happy as larry to stay with harmoney. If it goes below 8%.. i might as well put my money in a Trust Fund

[IntheRearWithTheGear]

Xcell spreadsheet maybe wrong, I still see great returns im sorry, 14% instead of 16% on an individual f5 loan with all those pesky rewrites gone. (and calculated at 15% ie greater than 50k invested.

[humvee]

at least this wont take effect until mid-june. i guess investors got their wish, too much whinging on the re-writes.

I have yet to see how this new fee structure will work out.. if the returns are still around 12% I'd be happy as larry to stay with harmoney. If it goes below 8%.. i might as well put my money in a Trust Fund

10% of interest(like lending crowd) would be far more reasonable - 20% is just taking the piss.

If my returns get even any where close to where you are talking Ill be moving my investing to Squirrel Money and Lending Crowd, For me harmoney formed the high risk, high return part for my P2P portfolio. C-F Grade. These grades are by far the worst hit by the fee increase of over 900% in some cases.

By the looks of it once the new fees are active harmoney will move to the same place in my portfolio as lendme - ie Just does not stack up or make sense against other P2P offerings

[Knot]

Made it to interest.co.nz http://www.interest.co.nz/business/8...wers-fees-amid

[Stevo]

Hi Stevo, If you email me directly with the details we will take a look at it for you. dan@harmoney.co.nz

One email and an extra day's grace, then the repayment rate went from 27% to 100%.

I'm not out to knock something that I'm going to invest heavily in, but it looks like Harmoney has "speed wobbles". I hope this turns out well.

[Stevo]

Hamoney's not exactly a place to make rash decisions about pulling out or for making fast money. It'll be interesting to see how this evolves.

[Broke]

10% of interest(like lending crowd) would be far more reasonable - 20% is just taking the piss.

true true... i wouldnt mind such high fees if we somehow have the option as retail investors to recoup some or all of the delinquencies through the fee structure

but i will still wait how this new structure turns out.. HM forecast on the returns is still at the 13% level.. so im not sure if this would affect us badly, as it would seem

[Stevo]

true true... i wouldnt mind such high fees if we somehow have the option as retail investors to recoup some or all of the delinquencies through the fee structure

but i will still wait how this new structure turns out.. HM forecast on the returns is still at the 13% level.. so im not sure if this would affect us badly, as it would seem

I think Harmoney's investor community will get a better idea of things after a full credit cycle of five years.