[QUOTE=mccollr;640424]Maybe they are all using Harmoney. Seems to be a steady stream of loans
They're Mainly Rewrites at HM
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[QUOTE=mccollr;640424]Maybe they are all using Harmoney. Seems to be a steady stream of loans
They're Mainly Rewrites at HM
This seems very UNBALANCED.
I've just run some numbers over a loan taken recently but since repaid over night.
Placed $500.00 into LN-000-018-659 on 28 Sept @ 14.79%
Loan started 30 Sept
Loan repaid 13 Oct
Have been paid:
1.22 int
0.12 fee
0.21 tax
SO that adds up to 1.55 gross
Far short of the assumed 12days of 14.79% interest!!!
Comments and workings appreciated....
I emailed LC this morning and this avo they came back with this below ... I'm unsure if it's ethical to copy and paste ... but i think we need to digest their portrayal of events ...
OK so they hang onto our funds at both ends of the transactions!!! ....
so he says loan was for only 6days ... but i can't see how or why LC has given the calculation example like it is as a net interest figure ... if in fact it's for only 6 days at that interest rate shouldn't it be a gross figure ... I ask others opinions here please. I know its only small amount of cents ... but that's not the point. I want to know things are 100% correct.
I remember two loan details so extremely similar and rather close together... so obviously they were the loans in question!
LC response:
<<< The loan you invested LN000-018-659 opened on 30/9/2016 and closed on 6/10/2016
As the borrower miscalculated the amount he required, so the loan LN000-018-659 closed on 6/10/2016 and he has a top up loan opened on the same day.
In this case, your interest received will be $500 @ 14.79% / 365 for 6 days = $1.22
Once the loan closed, we required a 7 days clearing period to make sure no issues before we are able to return the principal to our investors, hope you can understand this. >>>
I now see the net interest has now been reduced on the LC loan statements to $1.10 ... that's happened sometime during the day
What do the T&Cs say? Presumably LC have covered themselves. If the borrower only had the money for 6 days, then you can't really expect to get 14.79%pa for the other days, as the funds were probably just sitting around earning only 1-2%pa. Think of the interest earnt by LC for those few days at either end of a loan as another fee.
Probably what should have happened is that LC should have given you accurate dates for the start and end of the loan ie. 6 days apart.
Yes i would absolutely like to see accurate dates ...
I now have 30 paid off loans, so will be checking them as well (which is on the plan) I'll have to assume/guess a number of holding days! That's far too loose in my opinion!
The loan in question shows in my bank statement as principal being repaid on 13th ... but in the paid off loans it shows as being paid off on 14th ...