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Post by danraj on Nov 1, 2019 20:07:52 GMT
Does anyone know about recent changes to T&Cs that prepare platforms to pass on costs for holding client money?
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Post by mrclondon on Nov 1, 2019 20:22:48 GMT
In the p2p world many "investors" have experienced effective negative interest rates for many years.
Invest £100, get 10% interest, but lose £60 of capital is an effective interest rate of -50%.
Any deterioration in the macro economic picture, or any increases in fees charged by p2p platforms (hidden or otherwise) is not going to significantly worsen the already dreadful return from many p2p platforms IMO.
With many p2p lenders standing to lose a chunk of their life savings for their decision to invest in p2p, and with some that are suicidal after having recommended friends & family invest in this sector (according to those running the various action groups), the focus for many is now getting as much cash out of the sector as they can.
The p2p sector as a mass market product is I believe finished.
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corto
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Post by corto on Nov 1, 2019 20:38:47 GMT
Does anyone know about recent changes to T&Cs that prepare platforms to pass on costs for holding client money? What costs would that be? Cash will have to stay in bank accounts. They still pay positive interest (which is sacked by some sites). What are you expecting?
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Post by danraj on Nov 1, 2019 20:50:07 GMT
Currently there are no charges for holding client money, but we are aware of banks starting to charge 0.5% to hold cash. If this becomes standard, it is a cost we would need to pass onto lenders, with unutilised funds. I think we could asbsorb it for a period of time for small (sub 1k) balances, but would need to apply it to larger accounts.
One way of passing on the cost might be to charge dormant accounts. I.e. lenders who have not logged in or made bids in over 3 months.
We are not looking to preemptively introduce costs. We are just researching suitable changes to our T&Cs, in line with other platform, that would allow us to introduce and pass on such costs.
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Post by mrclondon on Nov 1, 2019 20:53:26 GMT
The OP is a platform representative who appears to be engaged in a campaign to bomb the forum with new threads. I'm not sure if the point re client account handling fees has any substance, but as I've said I'm not sure thats particularly material.
Not sure to what purpose, as to me it is a turnoff, and doesn't suggest to me I should take another look at ReBS platform. Quite the opposite.
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corto
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Post by corto on Nov 1, 2019 22:38:04 GMT
Lenders expect returns for the risk they are taking. Lower returns, whoever gets blamed for them, make bonds increasingly interesting.
Currently, many people seem to have an irrational fear of investing in bonds (not to speak about shares), but that can change quickly, if they realise that p2p is at a similar risk level, generally speaking.
Various platforms have managed to destroy trust in themselves or themselves entirely in quick time. There is not much room for reducing returns. We will run away dragging our locked in funds behind us.
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macq
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Post by macq on Nov 2, 2019 9:30:26 GMT
Does anyone know about recent changes to T&Cs that prepare platforms to pass on costs for holding client money? what section and note number is that within the FCA new rules?
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aju
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Post by aju on Nov 2, 2019 10:54:57 GMT
I notice this thread is marked with an anchor looking symbol that seems to suggest "this thread is falling" what does that mean. I've tried searching for the text but just get the text found within certain threads. Any ideas anyone?. I agree though with mrclondon comments above about the instigator here they do seem to be bombarding a number of threads lately. |
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star dust
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Post by star dust on Nov 2, 2019 11:26:12 GMT
I notice this thread is marked with an anchor looking symbol that seems to suggest "this thread is falling" what does that mean. I've tried searching for the text but just get the text found within certain threads. Any ideas anyone?. I agree though with mrclondon comments above about the instigator here they do seem to be bombarding a number of threads lately. It just means that when people post to the thread - like your post or this one, it doesn't bob back up to the top of the board. As new posts are added to other threads on this board this one will carry on falling down the page and eventually it will sink below the front page onto page two so won't be visible on a glance at the page. We rarely do this but it's not unheard of.
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aju
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Post by aju on Nov 2, 2019 11:33:21 GMT
I notice this thread is marked with an anchor looking symbol that seems to suggest "this thread is falling" what does that mean. I've tried searching for the text but just get the text found within certain threads. Any ideas anyone?. I agree though with mrclondon comments above about the instigator here they do seem to be bombarding a number of threads lately. It just means that when people post to the thread - like your post or this one, it doesn't bob back up to the top of the board. As new posts are added to other threads on this board this one will carry on falling down the page and eventually it will sink below the front page onto page two so won't be visible on a glance at the page. We rarely do this but it's not unheard of. Thats interesting star dust is it automatic based on AI tech or is it just a conscious decision by mods and if so what determines the need for a given setting. I'm guessing its an off topic area thing but I'm curious.
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macq
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Post by macq on Nov 2, 2019 11:35:41 GMT
glad the anchor symbol was cleared up as i thought it was a name calling thing  |
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bigfoot12
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Post by bigfoot12 on Nov 3, 2019 16:45:04 GMT
Does anyone know about recent changes to T&Cs that prepare platforms to pass on costs for holding client money? What costs would that be? Cash will have to stay in bank accounts. They still pay positive interest (which is sacked by some sites). What are you expecting? No corto they might not. I'm not sure why the negative attitude to this post (from almost all)? Bullion Vault (not P2P) changed its terms and conditions this very week to allow for possible negative interest rates. Several brokerage accounts charge for holding EUR cash deposits. It isn't hard to come up with things that might have an adverse economic impact on the UK economy in the next six months that might tip us towards negative interest rates.
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Post by bracknellboy on Nov 3, 2019 19:27:30 GMT
What costs would that be? Cash will have to stay in bank accounts. They still pay positive interest (which is sacked by some sites). What are you expecting? ... I'm not sure why the negative attitude to this post (from almost all)? ... I suspect the answer to that lies less in the actual question and more in the "who, where, why" of it being asked.
The OP is a rep of ReBS. I've noticed they have recently started posting relatively frequently on here from about 4-6 weeks (?) ago, after a long period of (near) absence. But they are generally not posting on the ReBS board, but elsewhere e.g. "General Chat". But always of course managing to mention ReBS in the post, unsurprisingly. For example, discussion of new "Guaranteed Buy Back" product, not posted on the ReBS thread of course, but instead in "General" dressed up as a question about others experiences of similar offerings on other platforms. While of course at the same time managing to "promote" the new offering. Obviously I'm sure that wasn't the intent, and it should all be taken at face value.....still, it does just feel all a touch unsavoury, and for those who have been around long enough, also a touch familiar - allegedly, and IMHO only of course.
Edit: And thus I suspect why the "Anchor" has been attached to the thread - so that just in case, on the off chance of course, there was a hope and intent that responses to the post would keep it popping up near the surface, the anchor will keep it weighed down and slowly sinking.
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Post by danraj on Nov 6, 2019 8:08:05 GMT
It's a pity that platform reps can't ask generic/industry questions of an audience of P2P lenders without such cynicism.
May I ask anyone with an interest in this topic to repost it as a new thread, so that the dialogue isn't lost?
I would also like to ask the question about what can be done to protect client accounts from administrators, but again it's a sore topic and, if I do it, as a platform rep, I'll face retribution.
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aju
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Post by aju on Nov 6, 2019 9:07:32 GMT
It's a pity that platform reps can't ask generic/industry questions of an audience of P2P lenders without such cynicism. May I ask anyone with an interest in this topic to repost it as a new thread, so that the dialogue isn't lost? I would also like to ask the question about what can be done to protect client accounts from administrators, but again it's a sore topic and, if I do it, as a platform rep, I'll face retribution. I'm sort of on the fence with lowering status of this thread but i am someone who has been arround the block more than once and can see where your current activity is perhaps viewed as a cynical attempt to raise the profile of your site. I've not looked recently on frank to see your activity on there if at all but one of the things ive come to respect this site for is its ability to further educate both myself and many of the more infrequent visitors so much so that its widely respected for its views both positive and negative. I'm sure you may get someone to attempt what you suggest but i would also say that i personally have my setting so that i can see when this thread is updated. Also anyone else could be framed as in collusion with you and might also result in them being anchored as well. I recomend that you ask questions and sit back and see. If its a valid attempt then it will be discussed as such both positive and negative.
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