|
|
Post by bobthebuilder on Feb 12, 2015 5:01:35 GMT
I see that RS are now sending e-mail notifications when contracts are repaid early, a development I was told was in the pipeline a while back. Thanks RS - very useful, as it means I no longer have to check the website on days when I have no scheduled repayments due. Even better on this occasion as I was able to reinvest the money at a rate higher than on the repaid contract  |
|
|
|
Post by p2plender on Feb 12, 2015 7:33:29 GMT
repaid or defaulted
|
|
|
|
Post by westonkevRS on Feb 12, 2015 8:02:16 GMT
We don't differentiate to lenders. Although some might like to know (especially forum members), I think the majority just want to know they have money back and the process is working. I don't think this will ever change.
Kevin.
|
|
sl75
Posts: 2,092 
Likes: 1,245
|
Post by sl75 on Feb 12, 2015 12:02:18 GMT
I see that RS are now sending e-mail notifications when contracts are repaid early, a development I was told was in the pipeline a while back. New? They've been doing the notifications since (at least) 2011... and since about a year ago, the notifications I received have mentioned the specific contract and the amount of money. I wonder if there are different types of early repayment, some of which generate an email and some of which don't (e.g. a repayment of all but a small residual amount might not properly "close out" the loan and trigger the notification...?)
|
|
|
|
Post by p2plender on Feb 12, 2015 12:27:30 GMT
I'd love to know Kev. Why not? This is investments not savings.
|
|
c88dnf
Member of DD Central
Posts: 364
Likes: 266
|
Post by c88dnf on Feb 12, 2015 12:42:15 GMT
I don't care either way whether a repayment to me is a default or simply early. It's the overall platform metrics that matter in the long run.
You can get a hint of what might be going on in regard to defaults by watching the expected defaults figure in the Ratesetter Info/Protection Fund data. It changes surprisingly frequently (more than once per day), persumably as a computer algorithm is triggered by certain defined metrics, one of which logically is loans going bad. Expected defaults for 2014/15 went up noticeably over the past couple of weeks (from around 2.4% to 2.7%), but have since dropped back again. As of this morning they were 2.584%. As an aside, the volatility of those numbers is why the "coverage ratio" is pretty useless as a metric: the base against which it is measured moves too much for the ratio to be useful information. The important number is the percentage of money on loan covered by the Protection Fund. As of today, 3.77% of loan money is covered.
Edit - since 10.00 the expected default rate has changed again. As of 15.15 12/02/2015, it's 2.580%.
|
|
|
|
Post by GSV3MIaC on Feb 12, 2015 17:20:50 GMT
Yep, but even 'the % of money on loan which is covered' is not a useful metric if you have no idea how risky RS' loan book actually is. Maybe they should show all numbers .. actual defaults, expected defaults, amount in the fund, and let you decide if you want to look at the ratios, the deltas, or twice the number you first thought of...
|
|
c88dnf
Member of DD Central
Posts: 364
Likes: 266
|
Post by c88dnf on Feb 12, 2015 17:35:38 GMT
Yep, but even 'the % of money on loan which is covered' is not a useful metric if you have no idea how risky RS' loan book actually is. Maybe they should show all numbers .. actual defaults, expected defaults, amount in the fund, and let you decide if you want to look at the ratios, the deltas, or twice the number you first thought of... As far as I can see, all those metrics are already publicly available, updated at least every few hours, under Ratesetter Info/ Provision Fund. Or am I missing your point?
|
|
|
|
Post by GSV3MIaC on Feb 12, 2015 21:04:10 GMT
sort of .. my point is that given three numbers, what you do with them is still the determinant as to whether you are happy or not. Do you want the PF to cover 2x the current default rate, or 2x the estimated default rate, or 'the estimated default rate plus 1% for luck', or '4% of loan outstanding because that's what XYZ Co/bank/government think is a safe number .. or .. or .. ?? There is no magic 'one number' answer.
|
|
|
|
Post by bobthebuilder on Feb 12, 2015 21:10:48 GMT
I see that RS are now sending e-mail notifications when contracts are repaid early, a development I was told was in the pipeline a while back. New? They've been doing the notifications since (at least) 2011... and since about a year ago, the notifications I received have mentioned the specific contract and the amount of money. I wonder if there are different types of early repayment, some of which generate an email and some of which don't (e.g. a repayment of all but a small residual amount might not properly "close out" the loan and trigger the notification...?)
This official explanation for an early repayment received last December may clarify things:
“I am sorry to hear that you had one of your contracts repaid early and did not receive a notification. I completely agree that you should have been notified of this and I offer my apologies that you didn’t.
The cause is a current system limitation which is due to be upgraded in the very near future. On this occasion it was due to an extra repayment being made.
At present, we only have a lender notification in place if a borrower arranges a FULL loan redemption payment that results in lender contracts being repaid early. If the type of payment is an extra/partial payment and results in lender contracts being repaid early, a notification is not sent. With the contract in question, the borrower chose to make an extra repayment towards the loan alongside the regular monthly repayment. It was this extra repayment that caused your contract to be repaid early.”
--------------------------------------------------------------------------------------------------------------------------------
The early repayment notification I received last night referred specifically to an extra repayment being made, so it is this fix that appears to have been delivered. Another reason I have been given for early repayments in the monthly access market is a change to the borrower’s direct debit date, which up until now also failed to trigger an e-mail notification. It’s not clear at the moment whether this processing gap remains, or if it was fixed at the same time as the issue of extra repayments being made.
|
|
c88dnf
Member of DD Central
Posts: 364
Likes: 266
|
Post by c88dnf on Feb 13, 2015 2:11:30 GMT
sort of .. my point is that given three numbers, what you do with them is still the determinant as to whether you are happy or not. Do you want the PF to cover 2x the current default rate, or 2x the estimated default rate, or 'the estimated default rate plus 1% for luck', or '4% of loan outstanding because that's what XYZ Co/bank/government think is a safe number .. or .. or .. ?? There is no magic 'one number' answer. Ah yes indeed. The dreaded "personal perception of risk" calculation! The answer is probably 42.
|
|
warn
Member of DD Central
Curmudgeon
Posts: 605
Likes: 632
|
Post by warn on Feb 13, 2015 11:23:33 GMT
...The answer is probably 42. The correct answer is always 42 (though sometimes the question is wrongly phrased).
|
|
