zlb
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Post by zlb on Aug 2, 2019 13:39:16 GMT
Email today is this normal? "Please note that Fund Ourselves may sometimes act as the lender or the borrower to absorb mismatch on the supply and demand. In the event we act as the lender, we set the rate at the full 5% to 15% to offer the best rate for the borrower when there is more borrower demand than supply of investments. We may act as the lender at time were there is a large demand from borrowers which exceed the available investments. In the event we act as the borrower, we borrow at the rate between 10% to 15% which is in line with what we have on offer from our external investors and lenders. We may act as the borrower at time were there is large supply of investments to balance the supply and demand and help reduce the investment pool to offer the best return on investment to our lenders."
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Ukmikk
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Post by Ukmikk on Aug 2, 2019 14:47:41 GMT
No.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 2, 2019 15:08:10 GMT
nsiam can you explain how this doesnt breach FCA objections to balance sheet lending? And how it actually corresponds to the definition of P2P lending?
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Post by nsiam on Aug 2, 2019 15:13:28 GMT
nsiam can you explain how this doesnt breach FCA objections to balance sheet lending? And how it actually corresponds to the definition of P2P lending? ilmoro , sure. Fund Ourselves is authorised as a marketplace/peer-to-peer lender AND as balance sheet lender. So the firm has the required permissions for both activities.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 2, 2019 15:18:47 GMT
nsiam can you explain how this doesnt breach FCA objections to balance sheet lending? And how it actually corresponds to the definition of P2P lending? ilmoro , sure. Fund Ourselves is authorised as a marketplace/peer-to-peer lender AND as balance sheet lender. So the firm has the required permissions for both activities. Thanks for the rapid clarification. As I'm sure you can understand in the current climate investors are extremely wary of anything out of the ordinary.
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Post by nsiam on Aug 2, 2019 15:23:35 GMT
ilmoro , sure. Fund Ourselves is authorised as a marketplace/peer-to-peer lender AND as balance sheet lender. So the firm has the required permissions for both activities. Thanks for the rapid clarification. As I'm sure you can understand in the current climate investors are extremely wary of anything out of the ordinary. We understand. Our ultimate target is to offer the best product possible to our users and we are working hard to achieve this goal.
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Ukmikk
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Post by Ukmikk on Aug 2, 2019 18:07:35 GMT
nsiam, on reflection do you feel that opting lenders in automatically to lend to the new loan types including lending to FO itself, updating your T&Cs and then taking the cash before we have any information about the new loans or any opportunity to opt out of these loans, was the right strategy? Also, how do you think the FCA would feel about this approach, especially in relation to TCF rules?
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Post by nsiam on Aug 2, 2019 20:40:40 GMT
nsiam , on reflection do you feel that opting lenders in automatically to lend to the new loan types including lending to FO itself, updating your T&Cs and then taking the cash before we have any information about the new loans or any opportunity to opt out of these loans, was the right strategy? Also, how do you think the FCA would feel about this approach, especially in relation to TCF rules? Ukmikk, given that all lenders like quick deployment and would not like to lose out. And taking into account that over 96% of investments are in favour. Plus, all the tools are given for investors to revert, opt-out and/or sell with ease, this was the best way so all lenders get the a fair chance to take part.
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Ukmikk
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Post by Ukmikk on Aug 3, 2019 14:14:48 GMT
nsiam , on reflection do you feel that opting lenders in automatically to lend to the new loan types including lending to FO itself, updating your T&Cs and then taking the cash before we have any information about the new loans or any opportunity to opt out of these loans, was the right strategy? Also, how do you think the FCA would feel about this approach, especially in relation to TCF rules? Ukmikk , given that all lenders like quick deployment and would not like to lose out. And taking into account that over 96% of investments are in favour. Plus, all the tools are given for investors to revert, opt-out and/or sell with ease, this was the best way so all lenders get the a fair chance to take part. nsiam , well thank you for being so candid. Unfortunately the decision as to what is best for individual lenders and what they may or may not consider to be 'losing out' is not really yours to make, that decision rests with the individual lenders themselves. The fact is that you put our money into loans which we (still) know nothing about as there is no information given about their terms, the risks, what is being done to mitigate the risks, who the borrowers are, how they are assessed etc. etc. without being explicitly given permission to do so. I note that you have declined to respond on the question of how the FCA might view this. My view is that they would be unimpressed. How do you know which lenders would not want to 'lose out', have you asked them? I do not understand the comment "over 96% of investments are in favour". Do you mean Investors? And again, if so, how do you know? Do you mean they have so far not sold the loans they were placed in. Is that an indicator of agreement in your eyes? As we know from these comments the investors who have realised what has happened didn't really know what was going on. There are probably many others who haven't caught up yet. Finally, thank you for offering a facility to opt out, albeit after the horse has bolted so to speak. I did of course opt out straight away and may reconsider when you have published some details about the new loan types and all the relevant factors which would be required to assess these properly for investment. As for 'selling with ease', I did immediately put all my new loans up for sale but at this moment not all loan parts have yet sold 5 days later. In fact, worse than that, it appears that I have been allocated more Medium Term loans today despite being opted-out in all investments!!! Please could you explain how and why? If I find that I still hold any of these loans on Monday then I will be in touch. Is the Customer Service line being answered these days? I ask because my previous attempts to call you have been futile as the phone wasn't answered and messages were not returned.
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Ukmikk
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Post by Ukmikk on Aug 3, 2019 14:35:06 GMT
nsiam can you explain how this doesnt breach FCA objections to balance sheet lending? And how it actually corresponds to the definition of P2P lending? ilmoro , sure. Fund Ourselves is authorised as a marketplace/peer-to-peer lender AND as balance sheet lender. So the firm has the required permissions for both activities. I have just checked the permissions for FO on the FCA website. Under 'Client Money' requirements applicable to this firm: "This firm must protect the money it holds and/or controls on behalf of customers. It cannot lend this money or use it to finance its own business." nsiam , please could you explain how your recent actions have complied with this restriction?
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Post by nsiam on Aug 3, 2019 15:26:09 GMT
Ukmikk, if you have a question regarding your account, please email me or lender support and I will make sure you have a quick response.
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zlb
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Post by zlb on Aug 4, 2019 16:39:24 GMT
ilmoro , sure. Fund Ourselves is authorised as a marketplace/peer-to-peer lender AND as balance sheet lender. So the firm has the required permissions for both activities. I have just checked the permissions for FO on the FCA website. Under 'Client Money' requirements applicable to this firm: "This firm must protect the money it holds and/or controls on behalf of customers. It cannot lend this money or use it to finance its own business." nsiam , please could you explain how your recent actions have complied with this restriction? my thoughts. Just because it has authorization for balance sheet lending, that doesn't make it legitimate to apply that to it's p2p activity. It's not a make up what you fancy Venn diagram. Are these two unrelated companies?
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Ukmikk
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Post by Ukmikk on Aug 4, 2019 16:45:25 GMT
nsiam , how about being a bit more proactive? If I was in your shoes, and had learned that my platform was misfiring, apart from being embarrassed, obviously, here's what I would do; 1. Query my account data to find all accounts where; Opt Out of new loan types = Y AND account allocated Medium Term loans = Y. 2. Correct these accounts by reversing/removing the allocation and returning the capital to the accounts immediately. 3. Look at my code to find out how such a basic error could have occured, fix it, and repeat to myself 100 times 'I will test my code properly before introducing new functionality'. (Possibly also look at my development process because this kind of cock-up should not be happening). 4. Email affected account holders apologising for my error and assuring them it has been rectified and won't happen again. It's not rocket science. If I could do it I'm sure a group of 'passionate techies' such as yourselves can. All the best.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Aug 4, 2019 21:57:42 GMT
To be fair I have notice a large reduction in the amount of my money not lent out and a reduction in the number of loans being acquired by the provision fund.
I suspect most lenders will be happy with their money is giving a regular return and a Provision Fund is >90% and will not really be interested in the nuances of how this is achieved as long as all activities are allowable under FCA rules
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Greenwood2
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Post by Greenwood2 on Aug 5, 2019 7:50:45 GMT
To be fair I have notice a large reduction in the amount of my money not lent out and a reduction in the number of loans being acquired by the provision fund.
I suspect most lenders will be happy with their money is giving a regular return and a Provision Fund is >90% and will not really be interested in the nuances of how this is achieved as long as all activities are allowable under FCA rules They will be happy until something goes wrong, then they won't be, like lenders in Col and Lendy were very happy with a regular 12%. This move by FO seems a bit off to me and once something starts to feel a bit off it's time to get out.
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