wuzimu
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Post by wuzimu on Aug 20, 2020 12:09:55 GMT
Rate Setter Action Group Disclosure: I was a co-founder of Lendy Action Group / Funding Secure Action Group. I do not think there is the same illegal goings on at RS as some other failing / failed platforms, but that does not mean lenders position as crucil stakehlders is being fairly represented. It isn't.
At this juncture we know that RS management will now be focussed on meeting MetroBank targets and not on building a sustainable business for an independent RS. That means lenders sentiment is now dispensible to RS. One visible consequence is that 50% of the re-paid money from Access markets is clearly NOT being allocated to meeting Access market RYI. That money may be diverted to filling 1 & 5 yr market RYI, but only RS know that. It would generate fees and lower the cost of capital for them if they did this of course. The other less visible way RS can increase margins is by reducing investment into recoveries of defaulting or late loans. Lenders won't see the effect of that for a few months, but will result in the loss scenario we all fear.
In short RS need to have a lender body to engage with and lenders need to be at the table in the transistion from an independent compnay to MB ownershiip.... in short it's well time for RSAG to form.
In practical terms a group of motivated lenders need to find each other and start a site where others can join. FB is easy and will do. A mission statement needs agreeing and sending to RS, FCA, the press. Only 25 lenders are needed to come together to be a credible group... experience shows that would quickly and organically grow to over 1,000.
It doesn't take alot of effort to do this, and the effort will be repaid many times over in terms of a fairer outcome moving forward.
I invite lenders interested in forming / being involved in RSAG to make themselves known by posting below.
Because of my commitments to other P2P groups I cannot be the leading light for RSAG, but I can share what I have learnt with others who are interested.
>> Don't leave it to others - if you have what you consider a significant balance in RS - do something for yourself and help start RSAG....
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Greenwood2
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Post by Greenwood2 on Aug 20, 2020 12:49:35 GMT
Rate Setter Action Group Disclosure: I was a co-founder of Lendy Action Group / Funding Secure Action Group. I do not think there is the same illegal goings on at RS as some other failing / failed platforms, but that does not mean lenders position as crucil stakehlders is being fairly represented. It isn't.
At this juncture we know that RS management will now be focussed on meeting MetroBank targets and not on building a sustainable business for an independent RS. That means lenders sentiment is now dispensible to RS. One visible consequence is that 50% of the re-paid money from Access markets is clearly NOT being allocated to meeting Access market RYI. That money may be diverted to filling 1 & 5 yr market RYI, but only RS know that. It would generate fees and lower the cost of capital for them if they did this of course. The other less visible way RS can increase margins is by reducing investment into recoveries of defaulting or late loans. Lenders won't see the effect of that for a few months, but will result in the loss scenario we all fear.
In short RS need to have a lender body to engage with and lenders need to be at the table in the transistion from an independent compnay to MB ownershiip.... in short it's well time for RSAG to form.
In practical terms a group of motivated lenders need to find each other and start a site where others can join. FB is easy and will do. A mission statement needs agreeing and sending to RS, FCA, the press. Only 25 lenders are needed to come together to be a credible group... experience shows that would quickly and organically grow to over 1,000.
It doesn't take alot of effort to do this, and the effort will be repaid many times over in terms of a fairer outcome moving forward.
I invite lenders interested in forming / being involved in RSAG to make themselves known by posting below.
Because of my commitments to other P2P groups I cannot be the leading light for RSAG, but I can share what I have learnt with others who are interested.
>> Don't leave it to others - if you have what you consider a significant balance in RS - do something for yourself and help start RSAG....
This could well scupper the Metro deal and push RS into administration. Not sure I want that!
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chris1200
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Post by chris1200 on Aug 20, 2020 13:17:28 GMT
I would also be concerned that negative publicity will just lead to even more RYIs and even less re-investment. To be completely honest, as someone not too far from the front of the queue, that isn't something I would welcome. I appreciate others in different circumstances might feel differently.
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Post by Deleted on Aug 20, 2020 13:20:22 GMT
The simple fact is - RateSetter cannot run a profitable business on 1-Year and 5-Year lending. They have tried, and failed, for years.
That is the harsh reality.
I think this is a case of - be very, very careful what you wish for. If the MetroBank deal falls through, and RateSetter have not been able to rebalance away from expensive lenders, the outcome will be significantly worse for everyone.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Aug 20, 2020 13:39:33 GMT
Personally I don't feel these sort of action groups are ever really worth the time and effort, judging by the ones I have followed from the sidelines over the years. Perhaps someone can point me to one - apertaining to investing -that met with any large degree of success?
I am quite happy to sit on the sidelines watching my funds plus any returns come back to me over the duration of my loan book. That will take up to four+ years and there remains a risk that it may yet not fully happen of course but I would not appreciate any third party action jeopardising it coming to fruition. In fact, should that occur, mind I don't set up an Action Group of my own and come after you!
(that last bit was meant a bit tongue in cheek but it would anger me)
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tjtl
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Post by tjtl on Aug 20, 2020 14:01:01 GMT
Personally I don't feel these sort of action groups are ever really worth the time and effort, judging by the ones I have followed from the sidelines over the years. Perhaps someone can point me to one - apertaining to investing -that met with any large degree of success?
I am quite happy to sit on the sidelines watching my funds plus any returns come back to me over the duration of my loan book. That will take up to four+ years and there remains a risk that it may yet not fully happen of course but I would not appreciate any third party action jeopardising it coming to fruition. In fact, should that occur, mind I don't set up an Action Group of my own and come after you!
(that last bit was meant a bit tongue in cheek but it would anger me)
I am entirely in agreement with you "tongue in cheek" sentiment. I still have a mid six figure sum in RS. I am reaching the end of the queue on my 5 year money- do I want to frustrate that sale, hmmmm, don't think so. I cancelled my sale on my Access funds as I am so far back in the queue I will be there for a decade, BUT I have been collecting some repayments, have seen the provision fund being rebuilt, and again am not sure how I benefit by some vigilantes, sorry action group, however well meaning causing trouble. Be in no doubt, MetroBank could walk from this deal- and they will if they think it isn't worth the candle. And without a deal we are up that creek with the paddle missing. There may come a time for pressure , but it ain't now.
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star dust
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Post by star dust on Aug 20, 2020 14:22:16 GMT
RS are a different ball game. They are not in administration, have a very large investor base with those here a probably insignificant minority and have no reason, that I can see, to engage with a random group of investors. If they do it is almost guaranteed to cost all investors more money, and time. It seems some people like to make a ‘career’ out of sitting on Creditors Committee’s and Action Groups; but as a Lendy investor I’ve not benefited an iota from the LAG so far, indeed the opposite. Are you an RS investor wuzimu? You’ve hinted you're in the RYI queue but unlike the majority who post here, never shared any information.
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macq
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Post by macq on Aug 20, 2020 14:25:38 GMT
Two things cross my mind - think we would all agree with the OP that yes RS are probably now interested in pleasing Metro more then us and as their potential employer(in away) that makes sense.But do we really believe without a buyer that RS would be anymore interested in us and not doing the same things and if anything it would be worse with no incentive as they would be closing up Also wonder if instead Metro was being taken over by say Nationwide would the FCA take any notice of a mission statement from savers/mortgage holders anymore then from investors/borrowers in RS during a takeover rather then an administration?
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jlend
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Post by jlend on Aug 20, 2020 14:27:18 GMT
A few of us visited the RS head office last year and met some of the key people to ask anything we liked. It was very helpful from my point of view.
I suggest you might try reaching out to RS and seeing if they are open to doing something similar again with a handful of lenders although I expect this would be remotely via zoom etc.
I expect there are some subjects they cannot cover while the Metro deal is in train, but you may find many of your queries can be covered at least in part.
I personally think it would be worth trying this first rather than an approach that may come across as confrontation. You could try dropping a message to the Ratesetter rep on this forum who organised the session and a previous session I did not attend.
An action group may be useful in the future but I think some things may be easy to clear up short term by a handful of lenders
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macq
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Post by macq on Aug 20, 2020 14:39:51 GMT
Think we now need to accept that all p2p was not the perfect vehicle we expected (or probably hoped for maybe saying it better) Between not really making a profit and the events of this year any orderly run down of a platform which will always do something not to someones liking is probably better then lawyers/administration/capital loss/FCA intervention etc Whatever the mission statement by a facebook group at this point could probably be opposed by another FB group as until something goes wrong you are pulling in different directions
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rscal
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Post by rscal on Aug 20, 2020 14:45:45 GMT
Think we now need to accept that all p2p was not the perfect vehicle we expected (or probably hoped for maybe saying it better) Between not really making a profit and the events of this year any orderly run down of a platform which will always do something not to someones liking is probably better then lawyers/administration/capital loss/FCA intervention etc Whatever the mission statement by a facebook group at this point could probably be opposed by another FB group as until something goes wrong you are pulling in different directions How does an orderly rundown take place at Ratesetter in the case of Access... the 'autophil' account? Does the ever helpful plaform just silently switch back on diversion of all repayments to holding or something?
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Greenwood2
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Post by Greenwood2 on Aug 20, 2020 14:53:49 GMT
Think we now need to accept that all p2p was not the perfect vehicle we expected (or probably hoped for maybe saying it better) Between not really making a profit and the events of this year any orderly run down of a platform which will always do something not to someones liking is probably better then lawyers/administration/capital loss/FCA intervention etc Whatever the mission statement by a facebook group at this point could probably be opposed by another FB group as until something goes wrong you are pulling in different directions How does an orderly rundown take place at Ratesetter in the case of Access... the 'autophil' account? Does the ever helpful plaform just silently switch back on diversion of all repayments to holding or something? If it just stops re-investing available funds would be available to withdraw directly. The same as setting your re-investment rate so high funds are never (hopefully) re-invested.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Aug 20, 2020 14:56:39 GMT
Think we now need to accept that all p2p was not the perfect vehicle we expected (or probably hoped for maybe saying it better) Between not really making a profit and the events of this year any orderly run down of a platform which will always do something not to someones liking is probably better then lawyers/administration/capital loss/FCA intervention etc Whatever the mission statement by a facebook group at this point could probably be opposed by another FB group as until something goes wrong you are pulling in different directions How does an orderly rundown take place at Ratesetter in the case of Access... the 'autophil' account? Does the ever helpful plaform just silently switch back on diversion of all repayments to holding or something? Even Access loans have a finite duration, don't they?
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chris1200
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Post by chris1200 on Aug 20, 2020 15:04:15 GMT
How does an orderly rundown take place at Ratesetter in the case of Access... the 'autophil' account? Does the ever helpful plaform just silently switch back on diversion of all repayments to holding or something? Even Access loans have a finite duration, don't they? Exactly - just not doing new lending = winding down. Even if they didn’t disable reinvestment, the loanbook would still be in wind-down. Reinvestment would just become slower and slower until there weren’t any loans left to fund.* *(presuming the provision fund is able to cope - otherwise things get more complicated)
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macq
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Post by macq on Aug 20, 2020 15:31:49 GMT
Think we now need to accept that all p2p was not the perfect vehicle we expected (or probably hoped for maybe saying it better) Between not really making a profit and the events of this year any orderly run down of a platform which will always do something not to someones liking is probably better then lawyers/administration/capital loss/FCA intervention etc Whatever the mission statement by a facebook group at this point could probably be opposed by another FB group as until something goes wrong you are pulling in different directions How does an orderly rundown take place at Ratesetter in the case of Access... the 'autophil' account? Does the ever helpful plaform just silently switch back on diversion of all repayments to holding or something? Like i said they will do things that people will disagree with (including me) and to be fair i have never thought an access/instant p2p product should be allowed by the FCA.But that horse has bolted - so by orderly i mean has anybody lost capital? which at the end of the day can be the only thing to worry about now I assume that RS will not be the last platform to close if so what should be the best outcome?All of peoples capital back at some point under the people you trusted your money with in the first place or run it how Joe public wants based on action groups with maybe the wrong result I would be the first to complain if i thought any platform was dishonest and at that point yes an action group might work as you all want the same thing but not sure we are at that point yet
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