RATESETTER latest

Pizza_Man

RATESETTER just offered investors a chance to sell out without penalties. Confused.

george4064

If you read the email in full it explains why.

Pizza_Man

Yes I read the email and understand it but hoped to get some discussion going.

bowlhead99

You'd get a better discussion going if you outlined what was happening and why they are doing it rather than leaving us to guess.

Voyager2002

I invest with them but have not received the email: have I done something wrong?

edinburgher

bowlhead99 wrote: »

You'd get a better discussion going if you outlined what was happening and why they are doing it rather than leaving us to guess.

Or by offering a salient point to discuss, or by explaining why he is confused :rotfl:

pjcox2005

If you go into your account you'll be able to see the correspondence.

Effectively ratesetter have taken a direct stake in three companies due to loans on the wholesale side (which has discontinued) which have gone into default.

Suggestion is they've incurred cost directly for one rather than using the provision fund which covers all existing forecasted bad debts, and the others they're expecting to recover in the long run.

However as a result they've offered free loan cancellations subject to there being others who will take it on in the secondary market if you contact them. Offer expires mid August.

edinburgher

From memory, they now own one of the companies involved?

aldershot

disclosure: I have no P2P.

This has a whiff of an alarm bell to me. Taking the (potential) losses on its own book is a way of keeping the slate clean ("we have no unexpected defaults") which is OK if the landscape was fine and dandy and this was isolated but I am firmly of the view that it is not. The is mounting evidence of disquiet in the sub prime sector as the economy slows rapidly and I have no confidence that the models have been tested in difficult times. I think the sector is keen to keep the "business as usual" flag flying but don't get caught in the rush for the door.

http://www.bbc.co.uk/news/business-40712573

http://uk.reuters.com/article/uk-provident-fin-results-idUKKBN1AA0IQ

PeacefulWaters

Voyager2002 wrote: »

I invest with them but have not received the email: have I done something wrong?

Most likely you invested at a time when they weren't exposing your money outside of their stated policy.

In other words, you have what you agreed to. Others don't. The latter can escape.

edinburgher

I'm still happy to keep a small slug of cash in RS, just a few £k because it's easy enough to obtain double the interest rate offered by my current account (have filled all worthwhile regular savers as part of ongoing stooze). I have, however, sold out of anything that is longer duration than Rolling, as it offers me a reasonable level of confidence that I'll be getting my money back soon enough if things go South.