Equifax Ltd i) an instalment is due and/or will be processed during the listing period and sale process;
+% Pricing+% Pricing in the Secondary Market is where a price is set out in terms of plus or minus a percentage on the Value Today price. For example, if the Value Today price is £100 and the +% pricing (for example for Buy Now) is shown as +1.00% then the price will be £101.00.
Anti-Money LaunderingAnti-money laundering is a term used to describe the legal controls that require financial institutions and other regulated entities to prevent, detect and report money laundering activities. Money laundering is the process of concealing the source of money obtained by illicit means.
Annualised RateInterest that is calculated under the assumption that any interest paid is combined with the original balance and the next interest payment will be based on the slightly higher account balance. Overall, this means that interest can be compounded several times in a year depending on the number of times that interest payments are made. In our case, payments are made monthly so there are always twelve compounding occasions.
Annual Percentage RateThe annual interest rate that is charged for borrowing, expressed as a single percentage number that represents the actual yearly cost of funds over the term of the loan. This includes fees and charges associated with the transaction. In our case we include the flat rate loan fee, the percentage loan fee and the effect of the Compensation Scheme Fund contribution. We do not include the cost of any membership subscriptions, or optional additional services such as change in instalment plan fees, money transfer or late payment fees.
APRAnnual Percentage Rate
ARBUARBU is the Automated Response to Bumped-off Underbid facility for those lenders with the Advanced Lenders' membership. It allows the lender to pre-determine an automatic response to being underbid and bumped-off an auction. It inserts a new bid or bids into the auction to remain part of that loan.
ArrearsThe number of repayment instalments that are past their due date to be credited in the Members’ Repayment Account. Arrears is quoted by the number of months’ payments that have been missed. Therefore a borrower who has missed three monthly instalments is three months in arrears
AutoLendAutoLend is the facility that enables lenders to set up parameters to determine how Madiston LendLoanInvest automatically lends their money
Bad DebtA loan that has entered default and has not been paid back by the borrower
Bad Debt ReliefIt is now possible to offset losses suffered on unpaid peer to peer loans against interest earned on other peer to peer loans. More information on taxation is available on the GOV.UK website: https://www.gov.uk/guidance/peer-to-peer-lending
Bank Base RateThe rate at which the Bank of England lends to the discount houses, which effectively controls the interest rates charged throughout the banking system
Bidding MarketThe open reverse auction market where borrowers' loan requests are visible to potential lenders to choose on which to bid to be part of the loan
Buy NowBuy Now in the Secondary Market is the process to trigger the immediate sale of the loan at the Buy Now price.
Buy Now PriceBuy Now Price in the Secondary Market is a price at which the seller will sell the loan part to the buyer instantly thus terminating the auction process and then completing the sale and purchase
CCLConsumer Credit Licence
Compensation SchemeThe Compensation Scheme is designed to help protect lenders from late and missed payments, arrears and defaults by borrowers. It provides funds to lenders where there has been such a problem with a borrower's repayment but it is not an insurance product and does not guarantee that the funds available in the Compensation Scheme Fund will cover every default.
Compensation Scheme FundThe Compensation Scheme Fund is the fund that is built by the Compensation Scheme participants and used to compensate lenders, if they should be so unfortunate as to suffer the problem of a borrower’s late or missed payment, arrears or even default. The Compensation Scheme Fund will be accrued from returnable contributions by borrowers, and partially from lenders' subscriptions and monthly fees.
CMAClient Money Account, the segregated or ring-fenced bank account for holding site customers' money.
CSFCompensation Scheme Fund
Consumer Credit LicenceUnder the Consumer Credit Act 1974 most businesses that provide goods and services on credit or for hire, lend money or provide debt collecting, debt counselling or debt adjusting services to consumers need to have a Consumer Credit Licence. Trading in credit activities without a credit licence is a criminal offence
CRACredit Reference Agency
Credit ReferenceA credit reference or credit report includes information about an individual's previous credit history and is produced by the credit reference agencies to provide potential lenders a range of information about potential borrowers, which lenders use to make their decisions
Credit Reference AgencyCredit reference agencies give potential lenders a range of information about potential borrowers, which lenders use to make their decisions. The information shared may include information about an individual's previous credit history. CRAs hold certain information about most adults in the UK. This information is referred to as a credit reference file or credit report. The three main consumer credit reference agencies in the UK are Callcredit, Equifax and Experian. This site is currently using Equifax who can be contaced at:
Credit File Advice Centre
PO Box 1140
0844 335 0550
Credit StarsCredit Stars are the simplified method of categorising a borrower's loan request proposition used throughout this site. There are three sets of up to five stars each, for Credit Reference, Affordability and Stability. The maximum number of credit stars is therefore 15 and the minimum is zero
DCADebt Collection Agency
Debt Collection AgencyA Debt Collection Agency is a business that pursues payments of debts owed by individuals or businesses. Most DCAs operate as agents of creditors and collect debts for a fee or percentage of the total amount owed
Debt Repayments v Income FactorThe ratio of the amount each month that goes towards repaying all the borrower's debts, to the borrower's monthly net income. This is a key affordability measure and it is sometimes referred to as the DTI (Debt to Income) Ratio
DefaultWhen four or more monthly repayment instalments on a loan have been missed and arrears have accumulated
DepositAdding money to a holding account at Madiston LendLoanInvest. Sometimes referred to as "In Payment"
Effective RateThe Effective Rate or the Effective Interest Rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears. It is used to compare the annual interest between loans with different compounding terms (daily, monthly, quarterly, semi-annually, annually, or other). It is also called effective annual interest rate, annual equivalent rate (AER) or simply effective rate
Financial Services Compensation SchemeThe Financial Services Compensation Scheme is the UK's statutory fund of last resort for customers of certain financial services firms. This means that FSCS can pay compensation to consumers (currently up to a limit of £75,000) if a qualifying financial services firm is unable, or likely to be unable, to pay claims against it. The FSCS is an independent body, set up under the Financial Services and Markets Act 2000. The FSCS does not charge individual consumers for using the service. Please note that Madiston LendLoanInvest and other P2P platforms are not covered by the FSCS
FCAFinancial Conduct Authority
FSCSFinancial Services Compensation Scheme
FSMAFinancial Services and Markets Act 2000
HMCEHer Majesty's Customs and Excise
HMRCHer Majesty's Revenue and Customs
Holding AccountWhere members' money is credited or debited with deposits or withdrawals. The money is held in a segregated account not forming part of the assets of Madiston LendLoanInvest but belonging to the members
Identity ChecksThe checking process to verify that a member is really who they say they are
Lending PortfolioLenders may create up to five Lending Portfolios, which will place bids automatically on Loan Requests according to parameters and settings configured by the lender
Listing PeriodThe period during which the loan request is open for bids. This period may be from 1 day to 20 days. If the loan request is fully funded the borrower may accept or decline the loan before the listing period has ended
Loan TermThe period during which repayment of the loan takes place, which can be from 1 to 60 months
Loan Payment v Available Income FactorThis is the ratio of the loan's monthly repayments to the borrower's monthly disposable income. This is a key affordability measure
Matching EngineThe mechanism that automatically matches lenders' money with borrowers' loan requests according to the parameters specified by the lender
Matching MarketThe automated market where borrowers' loan requests are not visible to potential lenders, but matches are made automatically by the Matching Engine using parameters set by the lenders in their AutoLend lending portfolios
NYDNot yet deducted (used in the lending dashboard to describe the status of fees)
Open AuctionOpen Auction is the process used in the Bidding Market, where lenders “bid” different interest rates to “win” the auction. The lowest bid wins, giving the borrower the best deal available. These bids are all visible on the site (but not the identities of lenders or borrowers). Think of this as an eBay for loans!
Personal Savings AllowanceFrom 6 April 2016, if you're a basic rate tax payer, you'll be able to earn up to £1,000 in savings income tax-free and higher rate tax payers will be able to earn up to £500 tax-free. More information is available on the GOV.UK website: https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance
Qualifying LoansQualifying Loans are those loan parts that "qualify" to be sold on the Secondary Market. Non-qualifying Loans (can't be sold on the Secondary Market) are those where:
ii) there is or will be at any time during the listing period and sale process, only one instalment repayment outstanding;
iii) the loan is showing an overdue or late repayment
iv) fewer than 2 monthly repayment instalments have been made by the borrower on the loan.
WithdrawalWithdrawing money from your holding account at Madiston LendLoanInvest
i) an instalment is due and/or will be processed during the listing period and sale process;