Peer-to-peer lending sites: MSE guide discussion

masonic

Ehube said:

jennyjj said:

Can I ask where you get that '6 month' quote from? From what I've seen, they seem to be implying a couple of months tops.

Sure. When changes were made that enabled you to pay returns from the 30 Day Rolling account (Now Access account) into your holding account to effectively tying you in unless another investor wanted to buy your loan I mentioned it to a few family members / friends. One didn't take much action and is now stuck with money in RS that they thought they could access within a month or so like they anticipated when they first opened the account.

It has always been the case that getting your money out of these accounts was subject to sufficient liquidity. The change that was introduced was a change to the default maturity option, such that funds are automatically rolled over. Had this crisis happened prior to the T&C change, investors would still see their money stuck in these accounts as the money was lent out with repayment terms that exceeded the term of the investment product.

firestone said:

Been mentioned before but for anybody new you can get round the problem of Access and the other new products auto lending your repayments so its the same as the 5yr/1yr mentioned in your last line
Set your rate in Access etc very high so when you get a repayment it will not lend at that point cancel the lend order and it goes back to your holding account and you can withdraw to bank.

Preventing the money being lent out again using this trick is a good way to slowly reclaim your capital, but as borrowers will have loans with terms up to 5 years, it could take that long for all of your money to be returned. I know you know this and have alluded to it above, but it's worth spelling out as I've seen some people come away with the expectation that this trick will see them get all their money out within a month.

firestone

Good point and i certainly don't want anyone thinking in month/s!! 

drphila

itm2 said:

Does anyone have any insight into how long withdrawals from Ratesetter Access accounts are currently taking? I requested a drawdown from my Access ISA account on March 20th.

More info here:

https://p2pindependentforum.com/post/385501

but I think you should expect 3-6 months

mikehero

Nardge said:

mikehero said:

For the last three tax years, the amount of my loans that were written off as bad debt was £40, £899 and now £2412.  The amount of interest I received in each of the three years was approximately constant at £5000.  So the bad debts written off in this last tax year was nearly 50% of the interest received.  I did complain to Zopa last year, but they just said "that's the way it works".

I'm not sure what the complaint was for. There will be bad debts, though the interest you received appears to have done much more than compensate the loss...

Of course there will be bad debts.
I was pointing out that the Zopa bad debt write-offs have been escalating over the last three years even before covid-19.
Anyone with any experience of P2P will know that when you make an agreed loan at say 6% interest, you don't expect to lose capital equal to half the expected interest.

I'm astounded that you say "the interest you received appears to have done much more than compensate the loss".  That's not the way that P2P lending is supposed to work.

mikehero

Albermarle said:

I did complain to Zopa last year, but they just said "that's the way it works".

Interest minus bad debts plus any recoveries = return 

That's how p2P works so not sure what else you expected Zopa to say ?

Maybe I expected an explanation from Zopa, of why the bad debt write-offs were getting so big.
Obviously you've also missed the point.
You say "Interest minus bad debts plus any recoveries = return".
Yes, I agree with this very sound algorithm of yours.
However, the whole point of my original post was to point out that Zopa had bad debt problems before covid19.

I'm sorry that neither your comment or Narge's comment were of any value to this particular discussion.

granta

Does anyone have any insight into how long it's taking to withdraw funds from Loanpad please?

Nardge

granta said:

Does anyone have any insight into how long it's taking to withdraw funds from Loanpad please?

It's the same as for most P2P platforms, withdrawals have been frozen for the time being. That said, Loanpad are felt to be amongst the more secure of the platforms, have the lowest LTVs, and they know what they're doing (stated both in reviews and from personal experience and interactions with them).

With Kind Regards

adindas

Rate Setter " Access Account Interest Rate?  I remember recently I t communication from rate setter that they are going to reduce the Access Accout to Around (2.5%). I have been trying to find that information again, but I could not. Does anyone when is the interest rate?

If you are going to cash your current investment on Rate setter then transfer it internally to your and then transfer it out to your link account, How many days until you could access that account in your Bank Account? Thank

masonic

adindas said:

Rate Setter " Access Account Interest Rate?  I remember recently I t communication from rate setter that they are going to reduce the Access Accout to Around (2.5%). I have been trying to find that information again, but I could not. Does anyone when is the interest rate?

If you are going to cash your current investment on Rate setter then transfer it internally to your and then transfer it out to your link account, How many days until you could access that account in your Bank Account? Thank

Interest rates have been halved across the board. If you were considering selling up, then you're a bit late to the party. It will be at least several months (based on recent investment release data) before you'll get your hands on your money - at the reduced rates people are even less likely to wish to take over your loans. You can use the trick mentioned earlier in the thread to get a small amount of your money back each month.

adindas

masonic said:

adindas said:

Rate Setter " Access Account Interest Rate?  I remember recently I t communication from rate setter that they are going to reduce the Access Accout to Around (2.5%). I have been trying to find that information again, but I could not. Does anyone when is the interest rate?

If you are going to cash your current investment on Rate setter then transfer it internally to your and then transfer it out to your link account, How many days until you could access that account in your Bank Account? Thank

Interest rates have been halved across the board. If you were considering selling up, then you're a bit late to the party. It will be at least several months (based on recent investment release data) before you'll get your hands on your money - at the reduced rates people are even less likely to wish to take over your loans. You can use the trick mentioned earlier in the thread to get a small amount of your money back each month.

masonic said:

adindas said:

Rate Setter " Access Account Interest Rate?  I remember recently I t communication from rate setter that they are going to reduce the Access Accout to Around (2.5%). I have been trying to find that information again, but I could not. Does anyone when is the interest rate?

If you are going to cash your current investment on Rate setter then transfer it internally to your and then transfer it out to your link account, How many days until you could access that account in your Bank Account? Thank

Interest rates have been halved across the board. If you were considering selling up, then you're a bit late to the party. It will be at least several months (based on recent investment release data) before you'll get your hands on your money - at the reduced rates people are even less likely to wish to take over your loans. You can use the trick mentioned earlier in the thread to get a small amount of your money back each month.

From the previous post, I understand the trick here is to set the expected interest rate very hight so when it is roled over, it will not go to the market  but instead, it will be returned to your holding AC. Am I understand it correctly.

I understand that the benefit of access AC is that the money will be rolled over to the market on monthly basis. So they can not refuse to return the money in the due date when you do not want to lend it again.

Could you just not give instruction to stop lending it in the rolling date the follwong month ?? What I have been missing here ??