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Post by propman on Apr 11, 2016 16:37:42 GMT
Under "Active Default Management" on the description of the Provision Fund, one approach to struggling borrowers is:
"2. Consolidation strategy offer to reduce debt repayments elsewhere"
While it is possible that some borrowers are incurring too much interest from some providers to afford to repay their loan arranged through RS while they might readily be able to service a debt at a more reasonable rate, I am surprised that this is a common scenario. What's more, surely a high credit contribution would be required as any borrower struggling to pay their debts must be a higher credit risk and potentially at risk of running up further high interest debt. Is it just me, or does this sound a high risk strategy?
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Post by westonkevRS on Apr 11, 2016 20:36:01 GMT
propman, I just checked myself, as this would obviously be a little but stupid to take on all the debt from other lenders for a customer in difficulty. I'd much rather pass the buck with our impaired debt should some other lender want to help! It reminds me of the dodgy days of balance transfers where you could actively encourage someone in difficulty to transfer all his debt onto another card issuer with a 0% promo! Oh happy dayz in " banking". It seems the " copy writer" got a bit excited and the text is wrong. We would help them reschedule the existing debt with RateSetter, but we wouldn't encourage them to transfer more! I'm sure we'll get the text fixed asap. Kevin.
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Post by propman on Apr 12, 2016 6:49:05 GMT
propman , I just checked myself, as this would obviously be a little but stupid to take on all the debt from other lenders for a customer in difficulty. I'd much rather pass the buck with our impaired debt should some other lender want to help! It reminds me of the dodgy days of balance transfers where you could actively encourage someone in difficulty to transfer all his debt onto another card issuer with a 0% promo! Oh happy dayz in " banking". It seems the " copy writer" got a bit excited and the text is wrong. We would help them reschedule the existing debt with RateSetter, but we wouldn't encourage them to transfer more! I'm sure we'll get the text fixed asap. Kevin. Glad to hear it. Thanks for clarifying.
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Post by westonkevRS on Apr 26, 2016 7:31:30 GMT
It's easy to lend money, harder to get it back! But I'm personally pleased to not that RateSetter has more capital repaid £585m vs. outstandings £582m. This feels like an important risk milestone, especially considering the Provision Fund has grown to £17.8m in absolute value. Hopefully 2016 will see it grow further and increase its ratio and coverage ratio.....  Kevin. |
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jlend
Member of DD Central
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Post by jlend on May 5, 2016 17:10:20 GMT
It's easy to lend money, harder to get it back! But I'm personally pleased to not that RateSetter has more capital repaid £585m vs. outstandings £582m. This feels like an important risk milestone, especially considering the Provision Fund has grown to £17.8m in absolute value. Hopefully 2016 will see it grow further and increase its ratio and coverage ratio..... Kevin. ... I don't expect a running commentary reply :-)
Just noticed the coverage ratio has gone down since this post last week. And an extra £600k of estimated bad debt.
Hopefully it will increase as you say.
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