Discussion of account closure if there are funds in recovery
We saw a thread on FB Mintos Fellows about the possibility to close the account and comment that it is not possible even if there are no funds in recovery.
In this case, there might have been a misunderstanding, since it is possible to close an account if there are no funds left.
In general, the account can be completely closed as soon as it is empty (when the balance 0). If the Investor has some funds in Recovery, we can initiate account closing from our side, which means we lock the account and the investor will not be able to do anything and as soon funds in Recovery will be paid, the funds will be transferred to investors bank account and then the account will be completely closed.
From time to time there are some investors that would like to write off the funds - in most cases, those are investors who have small or little amounts left. However, at the moment it is not yet possible.
A question to clarify the above, you mention that even tough there are funds in recovery (and the rest of the funds are withdrawn) you will be able to initiate the account closing, which results in a locked account until the funds are recovered and then will be transferred to the bank account of the investor. After that the account will be closed.
As recoveries can take quite some time (depending on the course of actions required), what will happen when during this period of waiting (which could take years - as example the Eurocent case) the investor closes the linked bank account (and changes e-mail address)? At the moment a possible recovery will take place, the funds are not transferable to the investor and it is not possible to reach the investor by e-mail. Will this result in a dormant account that is unable to be closed?0
if the bank account changes we kindly ask investors to inform us about it. As well the investors can access their account anytime later to follow the situation in their accounts and also it is always possible to change the email address in account settings.0
This problem could be solved by allowing to trade loans in recovery on the secondary market. Pretty sure there will be buyers for loans discounted up to 99% essentially writing off the investment. Perhaps also much better prices.2
Hi Jay-Dee, thank you for sharing your view on that. We decided to suspend the possibility to sell loans from suspended and defaulted lending companies in order to protect our investors.0
Yes @... I'm well aware of that. Those loans could of course only be allowed to be bought if extra care would be ensured as buyer warnings and AI option alerts. It sounds like that also the holder of recovery loans would need "protection" so they could close accounts, do the tax deductions, and cut some fixed costs of reporting to tax authorities.1
Or maybe with a 101% discount.
So you actually pay for getting rid of those loans in recovery ...0
Any feedback from Mintos please ?0
When the account is at the closing stage the investor cannot manage anymore his/her investments and funds, therefore we are not eligible to allow investor's whose account is being closed to sell the loans. Thank you for the feedback about selling defaulted Lending Company loans on the secondary market, however, in the near future it won't be possible. If there are going to be any changes we will inform all the investors accordingly.0
The idea would be to keep the account active and enable secondary market for loans in recovery/default.0
I would love to get rid of my account (due to having less effort reporting this to tax authorities)
But this is not possible because there is still some "dust" money in recovery, lent by Finko to people from Ukraine.You want your customers to donate money because of the war in Ukraine. I would love to write off the money in recovery.
Why do you not implement the option to donate the money, which is in recovery?1
@NZ good idea!!0
we kindly ask you to reach out to Mintos support to inquire about account closing by completing the form https://help.mintos.com/hc/en-us/requests/new?ticket_form_id=1900000292453 and we will be happy to review your request and reply.0
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