Harmoney

[Toukshare]

CageyB, I just got the same email from Harmoney

Subject: No new loans available to Harmoney retail lenders from 1 April 2020
From: The Harmoney Team
After careful analysis of Harmoney’s business model and the company’s strategic direction we have made the decision to no longer offer new loans for investment by retail lenders from 1 April 2020.
This does not affect existing loans, so current retail investments will continue to run out in accordance with their current terms following our closure of the platform to new retail lending.
This is not a decision we have taken lightly but we believe it is the right move to enable Harmoney to continue to lead the way in creating better personal loan products in a highly competitive market.
What this means for you as a Harmoney lender is laid out in detail below, however we would like to thank you for your support of Harmoney as a growing New Zealand business over the past five years.

What’s changing from 1 April 2020:

• Retail lenders will be unable to invest in new loans with Harmoney.
• If loans in your portfolio are rewritten or are paid off early, principal and interest repayments back into your account will not be able to be reinvested in further loans with Harmoney.

Auto-lend will be deactivated on 31 March 2020.

So that's it - the end. As a newish investor (started August last year), thanks for nothing, HM. Anyone got any alternative apart from the Lending Crowd?

[Bjauck]

CageyB, I just got the same email from Harmoney



So that's it - the end. As a newish investor (started August last year), thanks for nothing, HM. Anyone got any alternative apart from the Lending Crowd?

Squirrel has a platform.

[mp52]

...we believe it is the right move to enable Harmoney to continue to lead the way in creating better personal loan products in a highly competitive market.

Well that's a lot of words telling us nothing - and there I was thinking their business model was P2P. Well, the signal-to-noise ratio was low on this one in any case, despite being first out of the blocks. Hope it doesn't start a trend though.

[Cool Bear]

CageyB, I just got the same email from Harmoney



So that's it - the end. As a newish investor (started August last year), thanks for nothing, HM. Anyone got any alternative apart from the Lending Crowd?

Look at zagga.co.nz. Not that many loans and the one at the moment is not that attractive. But very good communication and good security.

[leesal]

Look at zagga.co.nz. Not that many loans and the one at the moment is not that attractive. But very good communication and good security.

Hi Cool Bear. Been with Zagga for a year but never invested. How frequent do the loans come up?




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[Cool Bear]

Hi Cool Bear. Been with Zagga for a year but never invested. How frequent do the loans come up?




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Not frequent. I would say 2 to 3 each month at best. Seems to be improving the last few months.

I have invested in about 20 loans with 5 paid back. 2 gone into arrears but with the low Loan to Value Ratio, we will probably get back our investments plus maybe even gain penalty interest. Doing okay so far. Returns much lower than Hm and Lending Crowd but much more secured and better communication.

[Cool Bear]

Harmoney seems to be doing massive writeoffs the last couple of weeks. Both funds I managed are way negative this month so far!

[myles]

Harmoney seems to be doing massive writeoffs the last couple of weeks.

Same - hope they are just doing a bit of a cleanup and things settle. Graph below shows charge offs on the rise since January (my loans):

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[Saamee]

Harmoney seems to be doing massive writeoffs the last couple of weeks. Both funds I managed are way negative this month so far!

Yes, I had a few ( too many ) as well on the 14th Feb.

You have to hope that when Retail investing ends..... That they still care enough to actually try an Collect late payments and not just write loans off just to 'get rid of them' off their books!

[leesal]

Yes, I had a few ( too many ) as well on the 14th Feb.

You have to hope that when Retail investing ends..... That they still care enough to actually try an Collect late payments and not just write loans off just to 'get rid of them' off their books!

I guess there are the fair dealing provisions under the FMA. Plus all their charges for late fees & the incentive to minimise commissions lost. But don't imagine they'd lose too much sleep over the difficult collections, probably just flick them straight to the 3rd party collections.

Anyone still investing between now and 31st March?