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Post by westonkev on Dec 10, 2016 9:33:40 GMT
westonkev , have you checked your voicemail for messages? Ha ha, very amusing. I'm very proud that I was RateSetter's first CRO, in the simpler days of pure unsecured consumer loans and lack of regulation. My proudest achievement was helping to grow the Provision Fund from £1m (inc. a £300k loan from RMM Ltd) to £18.4m plus some future contracted income. as a % of funds under management this also more than doubled, making the platform a much safer proposition in my opinion. However when you leave RateSetter, that's it. I unfortunately won't be invited back. Besides, it's a different company today that requires someone with with a broader range of lending and regulatory experience than me. And also someone that isn't quite so rough, lacking in discretion and forthright in opinion. Kevin.
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warn
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Post by warn on Dec 11, 2016 0:17:37 GMT
And also someone that isn't quite so rough, lacking in discretion and forthright in opinion. Obviously not a shoo-in for Foreign Secretary replacement either, then
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Investboy
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Post by Investboy on Dec 19, 2016 12:18:08 GMT
... However when you leave RateSetter, that's it. I unfortunately won't be invited back. Besides, it's a different company today that requires someone with with a broader range of lending and regulatory experience than me. And also someone that isn't quite so rough, lacking in discretion and forthright in opinion.... For some reason I only read above as "I spoke too much truth on the forum"
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ahowlin
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Post by ahowlin on Dec 21, 2016 15:49:13 GMT
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jonah
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Post by jonah on Dec 21, 2016 21:17:08 GMT
I would assume that the sale proceeds ended up in the PF? As for good or bad, I guess that depends on the price they got.
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shimself
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Post by shimself on Dec 21, 2016 22:23:39 GMT
I would assume that the sale proceeds ended up in the PF? As for good or bad, I guess that depends on the price they got. Judging by their comment (saying they felt they had a low chace of collecting) I think it'll be pence in the pound, in round terms it's a 2M hit.
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jonah
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Post by jonah on Dec 21, 2016 22:51:45 GMT
I would assume that the sale proceeds ended up in the PF? As for good or bad, I guess that depends on the price they got. Judging by their comment (saying they felt they had a low chace of collecting) I think it'll be pence in the pound, in round terms it's a 2M hit. Which, given a PF of c20m, is a noticeable percentage. If it it truly garbage, then getting 5p in the pound (for example) is better than zero though I guess.
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ahowlin
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Post by ahowlin on Dec 22, 2016 8:47:20 GMT
I would assume by the time they have sold these debts the PF should long ago have paid out to the Lenders. So I can't see any direct impact on the PF. Probably the bigger impact is RS can concentrate their efforts on more collect-able debt and I guess a small boost to their balance sheet.
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oldgrumpy
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Post by oldgrumpy on Dec 22, 2016 9:18:45 GMT
I suppose if RS were owed £1, and they thought they had little chance of getting anything, they would be happy to get 10p. Add that to the 10p it might have cost them to achieve close to nothing, and they may feel that they have made 20p out of the £1 which is better than 0p. Of course, the PF just gets the 10p, and RS save the other 10p. Fictitious figures, of course. First Credit take over hassle duties, and RS clear the books of dross.
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alender
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Post by alender on Dec 22, 2016 10:32:02 GMT
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Post by westonkev on Dec 22, 2016 11:05:11 GMT
I don't work for RateSetter now, so please don't think this insider knowledge. But RateSetter has been working on this a while, but it takes time as a P2P industry first.
Debt sale of unrecoverable debt is common within financial services, although the pennies in the pound don't make a big difference. But it's better than nowt and does clean up the back book operationally. It's an instant account gain of "fortuitous recoveries" to the PF.
The bad debt was owned by the PF, so the proceeds will go to the PF. The debt was written off a long time ago (on average), and so today it's a positive net gain.
Kevin.
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stokeloans
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Post by stokeloans on Dec 22, 2016 19:45:53 GMT
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Post by ruralres66 on Jan 24, 2017 19:00:23 GMT
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mark123
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Post by mark123 on Feb 1, 2017 18:12:54 GMT
Anthony Hilton: "Let’s be positive as peer-to-peer pain looms" in the Evening Standard 31st Jan 2017. Extract from larger article: "Even big firms such as RateSetter have had pause for thought. From the beginning, it has used a small levy on borrowers’ interest payments to endow a compensation fund to be used to reimburse any lenders whose loans go sour. The problem that emerged last year was that RateSetter’s bad-debt experience was significantly worse than expected even in these good times. This briefly threatened to overwhelm the fund and, although some neat juggling meant disaster did not materialise, it did prompt a rethink about the scheme. Now, after a rule change, all lenders will be pooled if the fund is exhausted and the losses shared equally across the board, meaning in effect that the business will go into run-off. Meanwhile, potential lenders are encouraged to lodge their money in a range of funds from which the money to make the loans will be drawn. The platform, therefore, seems less an introductory service for lenders and borrowers and more a collective investment scheme where investors lodge funds to be invested in small-business credit."Regards, Mark
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Post by WestonKevTMP on Feb 4, 2017 10:30:57 GMT
Anthony Hilton: "Let’s be positive as peer-to-peer pain looms" in the Evening Standard 31st Jan 2017. Extract from larger article: "The problem that emerged last year was that RateSetter’s bad-debt experience was significantly worse than expected even in these good times. This briefly threatened to overwhelm the fund and, although some neat juggling meant disaster did not materialise, it did prompt a rethink about the scheme. "It's worth mentioning that Mr. Hilton was involved heavily in the early publicity for Relendex. He keeps this quiet, although I think he remains positive on P2P. But this statement is classic journalistic hyperbole. At no point was the Provision Fund under threat of being overwhelmed. Bad debts are paid and the reported fund level is net, i.e. cash left. It's always had ~£20m, give or take some current/contracted future split. The largest fund size globally in P2P. At no point has their been a panic or a requirement to " juggle" anything. And the widely reported expected bad debt experience being wrong gets my goat. I won't go into detail, but the reported expectations were based on 1st Jan expectations of a weighted average across risk grades. During the year the business purposely took on a different blend of higher risk loan segments, thus the resultant bad debt performance was higher when summed. However the bad debt expectations within each risk segment were correct. The mistake was not updating the 1st Jan number to reflect the actual blend of business segment that was booked. Whereas the other platforms did adjust their numbers, hence giving the impression of being better forecasters! There were some other one-off larger loan and business source issues, but nothing that would overwhelmed anything. And not related to the standard retail loan offering. Bah. Glad to get that off my chest. Kevin.
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