MSE News: Ratesetter investors furious as 'technical issue' delays withdrawals after account closure

DireEmblem · 8 April 2021 at 10:24PM

ZeroSum said:

DireEmblem said:

masonic said:

Peer to Peer loans are supposed to be like an instant access savings account

Huh? First I've heard that. My understanding is that its still a relatively new product, and withdrawals can take days, as you need someone willing to essentially buy out the remainder of your loans. Similarly you do have a risk of losing 100% of your investment, whereas savings accounts generally have FSCS protection. In return, you may get a higher rate of interest/return.

It was sarcasm, like the rest of the post

Thats what happens when you've had a few beers

masonic · 9 April 2021 at 5:48AM

ZeroSum said:

It was 2 working days late not the one.

The emails I received stated "2nd-6th April All money returned to Holding accounts", there should not therefore have been an expectation that money could have been withdrawn until 6th. "Withdrawals from your Holding account should reach your bank account the next working day". The first update email on 7th made it clear that next day withdrawal requests received over the bank holiday weekend were not processed until the 6th in line with normal practices. The next working day after 6th is the 7th and money was actually received on the 8th.

DireEmblem said:

masonic said:

Peer to Peer loans are supposed to be like an instant access savings account

Huh? First I've heard that. My understanding is that its still a relatively new product, and withdrawals can take days, as you need someone willing to essentially buy out the remainder of your loans. Similarly you do have a risk of losing 100% of your investment, whereas savings accounts generally have FSCS protection. In return, you may get a higher rate of interest/return.

Was that the only part of my post you found odd? Thought the part about nobody ever opening a savings account other than with their main bank before FP would have been a dead giveaway.

ZeroSum · 9 April 2021 at 6:36AM

dunstonh said:

I initially thought Masonic was having a brain fart but got the joke by the end.

Reading some of the Twitter comments, it appears to have created some cashflow problems for some having paid money out expecting it to come in 2 days earlier than it did as promised
In that case, you have to ask what they are doing with P2P in the first place.

I think you misunderstand.
The money was fully refunded from loans to the cash holding accounts within ratesetter. When you withdraw your money, it comes back to your bank account the next day. It always has & this made ratesetter a very good option for cash recycling

ZeroSum · 9 April 2021 at 6:41AM

masonic said:

ZeroSum said:

It was 2 working days late not the one.

The emails I received stated "2nd-6th April All money returned to Holding accounts", there should not therefore have been an expectation that money could have been withdrawn until 6th. "Withdrawals from your Holding account should reach your bank account the next working day". The first update email on 7th made it clear that next day withdrawal requests received over the bank holiday weekend were not processed until the 6th in line with normal practices. The next working day after 6th is the 7th and money was actually received on the 8th.

DireEmblem said:

masonic said:

Peer to Peer loans are supposed to be like an instant access savings account

Huh? First I've heard that. My understanding is that its still a relatively new product, and withdrawals can take days, as you need someone willing to essentially buy out the remainder of your loans. Similarly you do have a risk of losing 100% of your investment, whereas savings accounts generally have FSCS protection. In return, you may get a higher rate of interest/return.

Was that the only part of my post you found odd? Thought the part about nobody ever opening a savings account other than with their main bank before FP would have been a dead giveaway.

The money WAS returned to holding account on 2nd. Therefore once withdrawn it should hit your bank on the Tuesday. I had normal repayments withdrawn on the 1st, which normally would have come back on the Tuesday also, but also didn't get until Thursday

I can make a debit card payment to ratesetter on a sunday evening, click withdraw & money will be returned to me by Monday afternoon. That is normal practices.

masonic · 9 April 2021 at 6:45AM

ZeroSum said:

masonic said:

ZeroSum said:

It was 2 working days late not the one.

The emails I received stated "2nd-6th April All money returned to Holding accounts", there should not therefore have been an expectation that money could have been withdrawn until 6th. "Withdrawals from your Holding account should reach your bank account the next working day". The first update email on 7th made it clear that next day withdrawal requests received over the bank holiday weekend were not processed until the 6th in line with normal practices. The next working day after 6th is the 7th and money was actually received on the 8th.

DireEmblem said:

masonic said:

Peer to Peer loans are supposed to be like an instant access savings account

Huh? First I've heard that. My understanding is that its still a relatively new product, and withdrawals can take days, as you need someone willing to essentially buy out the remainder of your loans. Similarly you do have a risk of losing 100% of your investment, whereas savings accounts generally have FSCS protection. In return, you may get a higher rate of interest/return.

Was that the only part of my post you found odd? Thought the part about nobody ever opening a savings account other than with their main bank before FP would have been a dead giveaway.

The money WAS returned to holding account on 2nd. Therefore once withdrawn it should hit your bank on the Tuesday. I had normal repayments withdrawn on the 1st, which normally would have come back on the Tuesday also, but also didn't get until Thursday

I can make a debit card payment to ratesetter on a sunday evening, click withdraw & money will be returned to me by Monday afternoon. That is normal practices.

That's never been the case for me. If I make a withdrawal request on a non-working day, for example a Sunday, the money isn't received into my bank account until the Tuesday. I've done the same as you in the past to take advantage of rates spiking over the weekend, but then missed the opportunity and withdrawn again.

If it really is 2 working days rather than 1 working day, then I guess I'll have to muster up the energy to feel twice as upset.

ZeroSum · 9 April 2021 at 6:50AM

masonic said:

ZeroSum said:

masonic said:

ZeroSum said:

It was 2 working days late not the one.

The emails I received stated "2nd-6th April All money returned to Holding accounts", there should not therefore have been an expectation that money could have been withdrawn until 6th. "Withdrawals from your Holding account should reach your bank account the next working day". The first update email on 7th made it clear that next day withdrawal requests received over the bank holiday weekend were not processed until the 6th in line with normal practices. The next working day after 6th is the 7th and money was actually received on the 8th.

DireEmblem said:

masonic said:

Peer to Peer loans are supposed to be like an instant access savings account

Huh? First I've heard that. My understanding is that its still a relatively new product, and withdrawals can take days, as you need someone willing to essentially buy out the remainder of your loans. Similarly you do have a risk of losing 100% of your investment, whereas savings accounts generally have FSCS protection. In return, you may get a higher rate of interest/return.

Was that the only part of my post you found odd? Thought the part about nobody ever opening a savings account other than with their main bank before FP would have been a dead giveaway.

The money WAS returned to holding account on 2nd. Therefore once withdrawn it should hit your bank on the Tuesday. I had normal repayments withdrawn on the 1st, which normally would have come back on the Tuesday also, but also didn't get until Thursday

I can make a debit card payment to ratesetter on a sunday evening, click withdraw & money will be returned to me by Monday afternoon. That is normal practices.

That's never been the case for me. If I make a withdrawal request on a non-working day, for example a Sunday, the money isn't received into my bank account until the Tuesday.

I've also done cash recycling at 11pm & had money back next day.
Do you have an obscure bank that doesnt do faster payments?

masonic · 9 April 2021 at 6:53AM

ZeroSum said:

masonic said:

ZeroSum said:

masonic said:

ZeroSum said:

It was 2 working days late not the one.

The emails I received stated "2nd-6th April All money returned to Holding accounts", there should not therefore have been an expectation that money could have been withdrawn until 6th. "Withdrawals from your Holding account should reach your bank account the next working day". The first update email on 7th made it clear that next day withdrawal requests received over the bank holiday weekend were not processed until the 6th in line with normal practices. The next working day after 6th is the 7th and money was actually received on the 8th.

DireEmblem said:

masonic said:

Peer to Peer loans are supposed to be like an instant access savings account

Huh? First I've heard that. My understanding is that its still a relatively new product, and withdrawals can take days, as you need someone willing to essentially buy out the remainder of your loans. Similarly you do have a risk of losing 100% of your investment, whereas savings accounts generally have FSCS protection. In return, you may get a higher rate of interest/return.

Was that the only part of my post you found odd? Thought the part about nobody ever opening a savings account other than with their main bank before FP would have been a dead giveaway.

The money WAS returned to holding account on 2nd. Therefore once withdrawn it should hit your bank on the Tuesday. I had normal repayments withdrawn on the 1st, which normally would have come back on the Tuesday also, but also didn't get until Thursday

I can make a debit card payment to ratesetter on a sunday evening, click withdraw & money will be returned to me by Monday afternoon. That is normal practices.

That's never been the case for me. If I make a withdrawal request on a non-working day, for example a Sunday, the money isn't received into my bank account until the Tuesday.

I've also done cash recycling at 11pm & had money back next day.
Do you have an obscure bank that doesnt do faster payments?

First Direct

I've also had a regular withdrawal set up. I had to set this up weekly on a Thursday, because if I set it for the Friday I wouldn't receive the money in my account until the Monday.

Edit: I suppose it is possible that my weekend withdrawals, which were typically larger than my regular income withdrawals, were subject to fraud checks, which can happen to any FP and delay receipt by up to a full working day.