Peer to Peer lending in NZ

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#1962389 22-Feb-2018 18:20

So I decided to browse through my Harmony loans last night and read the borrower's comments and came across one person who had borrowed $19,000 and his comments said his computer was getting old so he was planning on getting a new one. That's it.

Wow. $19k for a computer.

And a second thing, the monthly income (after tax) for most borrowers just look really high. Would they be able to inflate their own income so they get a better chance of getting their loan?

Sony

Sam91

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#1962394 22-Feb-2018 18:30

It won’t be 19k for a computer, it will be a rewrite.

michaelmurfy

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#1962409 22-Feb-2018 18:38

Sam91: It won’t be 19k for a computer, it will be a rewrite.

The top spec iMac Pro. I've seen people stupid enough to buy it.

plod

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#1962448 22-Feb-2018 19:55

sonyxperiageek: So I decided to browse through my Harmony loans last night and read the borrower's comments and came across one person who had borrowed $19,000 and his comments said his computer was getting old so he was planning on getting a new one. That's it.

Wow. $19k for a computer.

And a second thing, the monthly income (after tax) for most borrowers just look really high. Would they be able to inflate their own income so they get a better chance of getting their loan?

i have used Harmoney as a borrower. Pretty hard to inflate your income I would think. I needed 3 months of bank statements showing wage deposits. I would say it would have been the most long and drawn out applications I have done. And I have a mortgage.

sonyxperiageek

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#1962541 22-Feb-2018 22:08

Ah. Just looks like quite a few people earn over the 100k mark After Tax!

Sony

Sam91

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#1989606 6-Apr-2018 16:22

Hey guys, how are your investments going?

sonyxperiageek

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#1989633 6-Apr-2018 17:25

I'm still on 11.70% pa RAR. Haven't had any arrears.

Sony

Detruire

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#1989687 6-Apr-2018 19:15

I'm at 10.98%, with 8 loans in arrears plus 2 charged off (A4 and C5).

rm *

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#1989690 6-Apr-2018 19:20

Detruire:

I'm at 10.98%, with 8 loans in arrears plus 2 charged off (A4 and C5).

11.55% RAR. 0.28% in arrears and 1.82% charged off, mostly from two loans B3 and C3 taken out back in Sept 2015. Arrears and charged off percentages are based on outstanding principal - might not be correct way so let me know if you want me to recalculate

Linuxluver

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#2089343 12-Sep-2018 14:30

I've been on Harmoney for almost 3 years. Just under.

I got up to about $17,000 across 250+ loans....and had a few losses, but still making 9.5% overall. Much better than the bank.

But since Harmoney lost the court case about including their fees in the loan (not fees for tax purposes if you do that)......they seem to have gone off the boil. At the time they said the decision could undermine the vialility of their business model....as borrowers need to come up with hundreds *separate* from the loan.....and most of them can't do that.

Soon after re-write money started piling up in my Harmoney investor account.....and I've started taking it out. So far I've withdrawn about $2500 in put it into 'other things' (my Tesla Model 3 purchase account).

Interested to hear the experiences of others.

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My Tesla referral code: https://ts.la/steve52356

sonyxperiageek

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#2089358 12-Sep-2018 15:06

I have about 30 loans at the moment, and my RAR is 11.8%. Much better than the bank. I did have a 3+month in arrears and I expected that to be charged off soon, but logged in today and they're all back to $0.00. I should've recorded the loan ID to double check, but according to my dashboard now, I have no amount in arrears and nothing charged off.

Sony

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#2089585 12-Sep-2018 21:46

My RAR has dropped to 9.65% (platform is 9.77%) and I struggle to get loans fit under the auto lend criteria.

With about $2.5k invested I have had $136 written off.

It's been an interesting experiment but I've given up and am pulling my money out using the autowithdraw. At 9.65% I'm better off putting the money in my revolving credit (4.80%). There's not enough in it to have the funds tied up.

jnimmo

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#2089589 12-Sep-2018 22:04

Mine is 10.8%. I've also given up and pulling money out through auto-withdraw; not enough loans through auto lend my available balance to lend just goes up.

MichaelNZ

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#2089593 12-Sep-2018 22:22

I give Harmoney a miss.

As a lender, I have contacted them with straight questions around the appearance of conflicts of interest and moral-hazards.

I have never been able to get straight answers out of them. I have received whitewashed responses, avoidance, empty promises and plain non-response.

I know a bunch of people like them because of the high rates of return but if it all goes to cusatrd how many of these will do a 180 on their position?

Integrity Tech Solutions @ Norsewood, New Zealand

Linuxluver

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#2089649 13-Sep-2018 07:56

MichaelNZ:

I give Harmoney a miss.

As a lender, I have contacted them with straight questions around the appearance of conflicts of interest and moral-hazards.

I have never been able to get straight answers out of them. I have received whitewashed responses, avoidance, empty promises and plain non-response.

I know a bunch of people like them because of the high rates of return but if it all goes to cusatrd how many of these will do a 180 on their position?

They did address the issue of charging fees with no risk to them. They moved to a basis where if a loan fails they lose out, too.....not just the investor.

They don't like negative criticism. They seem to be OK with constructive criticism.....from my experience.

Your last question is a bit of a straw man. Harmoney is backed by Heartland Bank / Finance and unlikely to fail. Investors like us are only 25% of the capital involved....and the platform is seeing a very positive rate of return at all times.

The "problem" is too much investor money chasing too few loans. Nice problem to have.

_____________________________________________________________________
If you order a Tesla, click my referral code below to order your car and get free stuff.

My Tesla referral code: https://ts.la/steve52356

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