vlk494

Thank you for your answer.

You have clarified my first issue related to “Loan and Contract dates”.
Still, the other 2 issues stand.

Don't take me as a bad person as I clearly understand that the reason why people sometimes resource to loans is because they are in need or in a tough situation and I do not wish them any bad at all. I also understand and support refinancing as a part of debt handling process which aims to help the borrower fulfill his responsibilities in a more manageable way and improve the chances of recovery for the investors.

The 2 remaining issues, previously exposed under
- “Different Loan periods with same interest rates” and
- “New loan issued without current defined interest rates”
do not argue the helpfulness of the refinanced loan but rather its violation of the contractual terms.

The investment terms contract clearly states that the defined conditions for loans are only valid until a new investment terms contract takes place and that Omaraha is authorized and bound to fulfill those conditions.

My last update to the investment terms for the Estonian market, contract P16289108, took place on 08.10.2016 (listed in the contracts list as of 11.10.2016) so any previous contract and conditions were only valid until then.

The new loan took place afterwards, on 11.11.2016 (Contract 14.11.2016), for which the conditions stated in contract number P16289108 are legally binding.

Therefor, as stated in these conditions, a 6 months loan for a score between 701 and 800 concedes to an investment of maximum 10 EUR with a loan interest of 25,60 % (total 32%).

I would once more kindly ask Omaraha to take prompt action on 1 of the 2 options below:

1) a prompt rectification of the loan contract R16386490 (LOAN AGREEMENT NR L16387733) in accordance with the currently standing investment terms (contract P16289108) and to send me or submit proof of this rectification.

2) nullify the loan contract R16386490 (LOAN AGREEMENT NR L16387733) and restore the wrongfully invested money back into my virtual account and send me or submit proof of such as well.

I hope we can solve this situation quickly and in a friendly way, since is not my intent to produce any eventual harm. I'm only asking what is legally binding, besides fair, to be properly enforced.

Thank you in advance.

falonso
1) a prompt rectification of the loan contract R16386490 (LOAN AGREEMENT NR L16387733) in accordance with the currently standing investment terms (contract P16289108) and to send me or submit proof of this rectification.

2) nullify the loan contract R16386490 (LOAN AGREEMENT NR L16387733) and restore the wrongfully invested money back into my virtual account and send me or submit proof of such as well.

Unfortunately we can't do either option. Refinancing is beneficial to all and only effects very small number of investments.

vlk494
Unfortunately we can't do either option. Refinancing is beneficial to all and only effects very small number of investments.

You just admitted publicly that you do not honor the contracts with your investors. Your answer doesn't even address the legality of your actions which still stands as a direct violation of the contracts you sign with us investors.

I already agreed that refinancing is beneficial, but I pointed out something totally different: the way you do the refinance is the problem, not the refinancing itself. It is not in accordance with the investment terms to which you are legally bound.

Sorry but I cannot trust my money with a company that is dismissive of its investors and their contracts and that operates outside of the law for its own self-interest.

I would call all other investors to take their own conclusions on the trustworthiness of Omaraha based on this particular case in consideration of their future investment plans with this portal.

Shame on you Omaraha.

falonso

falonso, what is your point?
1. You will lose at least 20% of your money at the same moment your refinanced contract is nullified.
2. Rising interest rates is not debt handling process (not in our country).

Falonso might have a point - technically - but I find it rather amusing that someone has this kind of time, energy and passion to put into this kind of issue. I think it is more important to “look at the big picture” regarding wheter to invest or not to invest in Omaraha.

To elaborate on The BIG PICTURE:

- A “charming country” in Eastern Europe, part of the former Soviet Union. Has the highest percentage of HIV-infected persons anywhere in the developed world by large margins. A country that since 2003 just won't shut up about something. They keep telling everyone everywhere, “we are the inventors of Skype”. That's a bit shady indeed.

Head õhtut! :)

If the options are to take a 20% loss or refinance and hopefully come out with a profit then surely refinancing is the better option. As Omaraha say it affects a small portion of loans only and I dont see why the original contract is not sufficient. I would be surprised if anyone stopped investing over such a minor technicality.

timo

1. Timo and gmaxkenny, one thing is the contract with the borrower, another thing are the contracts with the investors. My contract as an investor produced by Omaraha on my behalf being nullified, for standing under illegal terms, doesn't mean the borrower's contract is illegal and he/she can still be refinanced for the sake of helping him/her and reducing the risk for the investors. In that sense, the borrower can still be refinanced for the total amount which would pay all the existing debt from the first loans and therefor no one would loose anything, contrary to what you say, as in: the borrower's elligibility for a refinanced loan always guarantees that the first loans are secured, despite not guaranteeing the second loan of course. We investors would only incur in loss if the borrower doesn't pay the first loan and Omaraha doesn't provide him/her with the refinance option, for which it is a good measure as part of debt collection process. But loosing part of our investments can always happen regardless of this and we investors know the risk beforehand. We all agree - I assume - that refinancing is the best option, I only question the conditions of this new loan since they don't satisfy the contractual terms I have with Omaraha. And that raises a big concern on how Omaraha doesn't honor its contracts.

2. I cannot say if raising interest rates is or not a “country's” inherent attribute or policy, but it's not even about raising the interest rates as you wrongly suggest. Money changes value throughout time - I guess this is a easy concept to understand. Today every 1 EUR of mine might require 20% interest, tomorrow 10% or 30%. It changes not only but also according to the market's perception of value and its offer/demand ratio. So if the interest rates I have defined currently would be lower - say 15% -, because the market value changed, then the interest rates offered 4,5 months ago to the borrower - 20% -, would still be in violation of the contractual terms. Not only that but it would be also unfair for the borrower, to give him today higher interest rates than what the market asks for.

So my point is exactly to make it fair for everyone, both borrowers and investors, and always honor the contractual terms.

Edit:
gmaxkenny, don't be surprised. I actually canceled all my investment terms since I cannot condone with Omaraha dismissing contractual terms. If after this - which says I don't authorize any further investments - Omaraha takes money from my virtual balance and puts it into new refinanced loans, they will be acting again in violation of the signed terms. That doesn't mean that they can't refinance an old loan gone bad, it just means they must get the money to refinance this new loan from the available pool of investors instead and not from me.

falonso
Omaraha takes money from my virtual balance and puts it into new refinanced loans, they will be acting again in violation of the signed terms. That doesn't mean that they can't refinance an old loan gone bad, it just means they must get the money to refinance this new loan from the available pool of investors instead and not from me.

When loan is being refinanced, money is not taked from your or others virtual accounts. New refinanced loan is an exact sum of outstanding principal of previous loan, ie you already invested this money.

mutabor

Technically no, the first loan is paid in full (so there's a debit of the outstanding principal that closes that first contract) and a new loan is created with that same amount (credited from the money just arised from the first loan). Regardless if it shows in your balance or not, during that small period of time, these are two separate movements. If I don't authorize new investments, once the first contract is closed, the paid outstanding principal must not produce a new investment neither, of course, a new contract.