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Post by p2plender on Jul 3, 2015 8:39:11 GMT
Obviously 'market forces' weren't working.
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Post by bracknellboy on Jul 3, 2015 9:14:46 GMT
Well since the cash back started I've had a very large slew of early redemptions, esp. of 1 year contracts. Co-incidence ?
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Post by yorkshireman on Jul 3, 2015 9:25:32 GMT
I don't regard RS as a sneaky platform, but this marketing ploy does have a sneaky "aroma" about it - whether or not it is intended. In my experience it’s always best to be sceptical where brass is involved, that’s a general observation by the way, not a direct comment about RS.
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teddy
Posts: 214
Likes: 90
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Post by teddy on Jul 3, 2015 12:47:05 GMT
The cashback is nothing more than a blatant method of lowering rates for borrowers. Lower rates means more borrowers which means more cream skimmed off the top for RS.
It's the lenders who suffer. RS are presumably making more money from skimming off that cream from excess borrowing than they are paying out in cashback. I'm putting in another £200 this month to get £25 cashback, but apart from that, I'll be drawing down for a few months. I'm no longer comfortable with the amount I have in RS.
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Post by p2plender on Jul 3, 2015 13:58:57 GMT
Well summed up above.
Not impressed with RS doing this one bit.
Agree my repayments going into FC ans SS for at least the next month. Those accepting this punitive rates should think of the consequences if/when bad debts kick in which I suspect they will. China starting to wobble. The ripple effects will be felt the world over. Need to keep that return rate up to mitigate bad debt.
What are the cashbackers seriously thinking? Surely they've not discovered some extra dosh collectively? Between 6.8/7% could have been taken last week. The mind boggles.
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Investor
Member of DD Central
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Post by Investor on Jul 3, 2015 14:59:28 GMT
23,688 Lenders at RS, 1042 people on this forum. By my rough calculations 22,646 who don't really have a clue what is going on, and haven't even taken the time to find out whether some additional information can be found to assist with their investment strategy.
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Post by brokenbiscuits on Jul 3, 2015 16:44:00 GMT
23,688 Lenders at RS, 1042 people on this forum. By my rough calculations 22,646 who don't really have a clue what is going on, and haven't even taken the time to find out whether some additional information can be found to assist with their investment strategy. im sure that was said as a shock statement/ tongue in cheek... Everyone can read these forums, you just have to register to comment. I used to lurk long before i signed up. Personally i used to read these forums before i even signed up to any p2p sites! I feel your pain though, based on current rates on the 5 year you would want 5% cash back to break even/cut a tiny profit and about 6-8% to see it as an incentive!
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Post by duncandive on Jul 3, 2015 17:56:01 GMT
The cashback is nothing more than a blatant method of lowering rates for borrowers. Lower rates means more borrowers which means more cream skimmed off the top for RS. It's the lenders who suffer. RS are presumably making more money from skimming off that cream from excess borrowing than they are paying out in cashback. I'm putting in another £200 this month to get £25 cashback, but apart from that, I'll be drawing down for a few months. I'm no longer comfortable with the amount I have in RS. Hi teddy the way I read the T&C's for the Cashback, you would need to invest a further £2,500 in order to get the £25 Cashback. Of course I could be wrong ( it sure won't be the first time )
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teddy
Posts: 214
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Post by teddy on Jul 3, 2015 18:46:52 GMT
I only need to put another £200 in this month to top up what I've already deposited.
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pom
Member of DD Central
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Post by pom on Jul 3, 2015 19:16:27 GMT
So as alternative....I paid some cash into LendingWorks that they received yesterday and it's already loaned out at 6.4%..... (which is not what I'm looking for at Ratesetter, I now only list at 6.8% there, but given I got another lump sum a couple of days ago it made sense)
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jonbvn
Member of DD Central
Posts: 326
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Post by jonbvn on Jul 3, 2015 19:40:51 GMT
The cashback is nothing more than a blatant method of lowering rates for borrowers. Lower rates means more borrowers which means more cream skimmed off the top for RS. RS is a business not a charity. They do within reasonable legal & moral means whatever it takes in their line of business to make a profit. Most lenders don't seem to be able to see the woods from the trees with this cash back. As the saying goes, don't get mad get even;) - There are plenty of other investment p2p opportunities available for these two weeks. Over a 5 year investment horizon keeping your powder dry for 2 weeks costs you about 0.1%.
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Post by westonkevRS on Jul 3, 2015 21:34:36 GMT
Well since the cash back started I've had a very large slew of early redemptions, esp. of 1 year contracts. Co-incidence ? Co-incidence, of course. But 1 year contracts do suffer from redemptions probably at a higher rate than the other products. This actually suits some as they like the money back to make another choice, but if you are expecting always to get the full 1-year you'll often be disappointed. @ westonkevRS
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Post by p2plender on Jul 6, 2015 7:29:24 GMT
So where is all this so called unprecedented demand which required the cash back deal??
The 5 year lending pot looks positively brimming from where I'm looking.
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Post by closetotheedge on Jul 6, 2015 8:46:42 GMT
At least this cash back has given me the impetus to look around at other P2P sites. As RS have broken theirs for the timebeing I am going to give Lendingworks and Wellesley a go. I played with FC about 2 years ago but did not like the amount of time it took me each day. Ironic that I previously liked RS since I could just set a YR at my minimum and leave the system to do its thing, however, with the change to the YR system along with this cashback I think RS may be best left alone for a while.
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Post by contangoandcash on Jul 6, 2015 9:30:47 GMT
1 year at 2.6% and monthly at 2.9%. As someone stated, it's broken. I thought there'd be some minor rush, but this is, to use a popular stock market term, 'dumb money'. Wasn't 4% available for 1 year not long ago ? Even with a full £10k cashback investment, its lower than where the market had settled previously!
Which reminds me, given RS is one of the few P2P sites to show the market supply / demand in a crude ladder format, shouldn't we have better historical charting for rates? This would help investors make sensible decisions, and not jump ship as they are right now. If things do get hairy in terms of defaults, then I'd much rather be getting near 7% than sub 6% which could very easily be well below fair value... I do doubt such charts are favourable for RS as a business (given they put this cashback offer on with rates nearing 7%), but Kev (hello) does seem in favour of keeping investors informed with their risk choices etc
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