Ratesetter Release Delays

Prism

I'm still surprised by the number of people that seem surprised by this situation. To me at least it was fairly predictable. If you lend someone money for 5 years and nobody is available to take over that debt then you may need to wait 5 years for your money. You can see exactly how long is outstanding on each loan. Why the rush.

Not sure what all the fuss is about. Still getting paid 2.5% interest.

bigadaj

Prism said:

I'm still surprised by the number of people that seem surprised by this situation. To me at least it was fairly predictable. If you lend someone money for 5 years and nobody is available to take over that debt then you may need to wait 5 years for your money. You can see exactly how long is outstanding on each loan. Why the rush.

Not sure what all the fuss is about. Still getting paid 2.5% interest.

Well that's your own fault for reading the tesm and conditions and understanding what you are investing (not saving) in. You have no one to blame but yourself....

Aceace

Prism said:

I'm still surprised by the number of people that seem surprised by this situation. To me at least it was fairly predictable. If you lend someone money for 5 years and nobody is available to take over that debt then you may need to wait 5 years for your money. You can see exactly how long is outstanding on each loan. Why the rush.

Not sure what all the fuss is about. Still getting paid 2.5% interest.

I expect the rush is because of the realisation that those that escape early will avoid the capital haircuts that will likely be imposed and concentrated on those that remain when RS are finally forced to declare that their opinion on the level of defaults that they will suffer in the current crisis was overly optimistic.
There are many that are only currently earning 1.5% interest, which is way to low for the risk. 

Grogged

I also think many will think they have more protection with RS being bought.
Most of my investment is withdrawn, so I don't have that much exposure.
But I do feel for those who will be waiting years for an exit on what they thought was an easy access product, as has been mentioned many times before.

itwasntme001

It is probably safer under Metrobank's control as P2P platform risk goes away.  Of course Metrobank can go bust as well and there are no certainties whether the outstanding loans will be taken over by someone else to manage other than the liquidators.

Luckily I got out of P2P a few years ago.  It is a terrible business model for all except those who own the platforms.

Aceace

In case anyone missed it, Ratesetter have announced a change to their charge-off procedure (https://members.ratesetter.com/noticeboard/change_to_provision_fund_charge_off_procedure_for_consumer_loans). EDIT: Sorry, but this link doesn't work. Can anyone please tell me why? It's the first one I've tried on this forum, so probably something simple. 

The only reason that I can see as to why they've done this is that it would allow them to delay the point at which they are forced to declare further interest cuts and eventual capital haircuts. It's good news for those near the front of the escape tunnel as it should give you a little longer to escape because it will slow the rate at which the PF cash is depleted. On the other hand it's likely to be bad news for those that don't manage to escape as they will be left with a smaller PF (as its now going to pay interest for longer) and there will be fewer remainers left to share the eventually declared losses. 

IMO, a very poor decision from a platform that purports to mutualise losses! 

Prism

Aceace said:

In case anyone missed it, Ratesetter have announced a change to their charge-off procedure (https://members.ratesetter.com/noticeboard/change_to_provision_fund_charge_off_procedure_for_consumer_loans). EDIT: Sorry, but this link doesn't work. Can anyone please tell me why? It's the first one I've tried on this forum, so probably something simple. 

The only reason that I can see as to why they've done this is that it would allow them to delay the point at which they are forced to declare further interest cuts and eventual capital haircuts. It's good news for those near the front of the escape tunnel as it should give you a little longer to escape because it will slow the rate at which the PF cash is depleted. On the other hand it's likely to be bad news for those that don't manage to escape as they will be left with a smaller PF (as its now going to pay interest for longer) and there will be fewer remainers left to share the eventually declared losses. 

IMO, a very poor decision from a platform that purports to mutualise losses! 

I have had quite a lot of my capital returned early over the last 6 months which I have been able to extract. This is likely due to the current system of three missed payments being trigger by various loans. So that has meant that I have effectively been skipping the queue. I think quite a few people use this trick. The changes will likely stop this behaviour unless a loan is truely paid off early.

Aceace

Prism said:

Aceace said:

In case anyone missed it, Ratesetter have announced a change to their charge-off procedure (https://members.ratesetter.com/noticeboard/change_to_provision_fund_charge_off_procedure_for_consumer_loans). EDIT: Sorry, but this link doesn't work. Can anyone please tell me why? It's the first one I've tried on this forum, so probably something simple. 

The only reason that I can see as to why they've done this is that it would allow them to delay the point at which they are forced to declare further interest cuts and eventual capital haircuts. It's good news for those near the front of the escape tunnel as it should give you a little longer to escape because it will slow the rate at which the PF cash is depleted. On the other hand it's likely to be bad news for those that don't manage to escape as they will be left with a smaller PF (as its now going to pay interest for longer) and there will be fewer remainers left to share the eventually declared losses. 

IMO, a very poor decision from a platform that purports to mutualise losses! 

I have had quite a lot of my capital returned early over the last 6 months which I have been able to extract. This is likely due to the current system of three missed payments being trigger by various loans. So that has meant that I have effectively been skipping the queue. I think quite a few people use this trick. The changes will likely stop this behaviour unless a loan is truely paid off early.

You're right, but the new procedure only applies to consumer loans, so you may still get full repayments from other loan types. 

Exiled_Tyke

Prism said:

Aceace said:

In case anyone missed it, Ratesetter have announced a change to their charge-off procedure (https://members.ratesetter.com/noticeboard/change_to_provision_fund_charge_off_procedure_for_consumer_loans). EDIT: Sorry, but this link doesn't work. Can anyone please tell me why? It's the first one I've tried on this forum, so probably something simple. 

The only reason that I can see as to why they've done this is that it would allow them to delay the point at which they are forced to declare further interest cuts and eventual capital haircuts. It's good news for those near the front of the escape tunnel as it should give you a little longer to escape because it will slow the rate at which the PF cash is depleted. On the other hand it's likely to be bad news for those that don't manage to escape as they will be left with a smaller PF (as its now going to pay interest for longer) and there will be fewer remainers left to share the eventually declared losses. 

IMO, a very poor decision from a platform that purports to mutualise losses! 

I have had quite a lot of my capital returned early over the last 6 months which I have been able to extract. This is likely due to the current system of three missed payments being trigger by various loans. So that has meant that I have effectively been skipping the queue. I think quite a few people use this trick. The changes will likely stop this behaviour unless a loan is truely paid off early.

Do you happen to know what happens to your money in the queue if the balance of money invested becomes less than the amount originally requested for release because of withdrawals under this method? 

Prism

Exiled_Tyke said:

Prism said:

Aceace said:

In case anyone missed it, Ratesetter have announced a change to their charge-off procedure (https://members.ratesetter.com/noticeboard/change_to_provision_fund_charge_off_procedure_for_consumer_loans). EDIT: Sorry, but this link doesn't work. Can anyone please tell me why? It's the first one I've tried on this forum, so probably something simple. 

The only reason that I can see as to why they've done this is that it would allow them to delay the point at which they are forced to declare further interest cuts and eventual capital haircuts. It's good news for those near the front of the escape tunnel as it should give you a little longer to escape because it will slow the rate at which the PF cash is depleted. On the other hand it's likely to be bad news for those that don't manage to escape as they will be left with a smaller PF (as its now going to pay interest for longer) and there will be fewer remainers left to share the eventually declared losses. 

IMO, a very poor decision from a platform that purports to mutualise losses! 

I have had quite a lot of my capital returned early over the last 6 months which I have been able to extract. This is likely due to the current system of three missed payments being trigger by various loans. So that has meant that I have effectively been skipping the queue. I think quite a few people use this trick. The changes will likely stop this behaviour unless a loan is truely paid off early.

Do you happen to know what happens to your money in the queue if the balance of money invested becomes less than the amount originally requested for release because of withdrawals under this method? 

I have no idea. That is now the situation I have. I assume that when I get to the end of the queue i will get the remaining left but who knows. I'm not going to cancel and get to the back of the queue.