dermot
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Post by dermot on Oct 4, 2016 9:10:22 GMT
Oof! 3.1% across the board this morning - except the 1yr, at 2.9%... Ouch, yes. I think the Market Rate was set at 5.1%. A number if lenders went in at 5.0% AER (which is typical for the morning) and then others chased it down to 4%. It then looks like 6 lenders with low-ball "lend it now offers" were accepted as far low as 3.1%. I've said here before, all customers see the rate and confirm before setting their lending offer. This seems a little low and I have raised it internally. I'm a little uncomfortable that even just a small number of customers that still chose these rates are locked in for up to 5-years. I don't know what the answer will be. There will not be an appetite for more warnings or tech restrictions. But we should be able to contact and educate. Kevin. Interesting dilemma - I guess you could add a targetted warning only at the 'are you sure' point if someone is setting an offer of more than n% below the average of the last few days? It would only kick in if someone (through desperation or inexperience) bids at what looks to be an unusually low rate compared to recent average activity. Methinks this is something that might play well with regulators if/when they take more of an interest in P2P as you can demonstrate processes in place to protect your lenders (i assume you already do some vetting to ensure that borrowers can afford repayments).
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adrianc
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Post by adrianc on Oct 4, 2016 10:11:35 GMT
Interesting dilemma - I guess you could add a targetted warning only at the 'are you sure' point if someone is setting an offer of more than n% below the average of the last few days? It would only kick in if someone (through desperation or inexperience) bids at what looks to be an unusually low rate compared to recent average activity. But if the rate on just one day is swinging between (at least) 3.1% to 5.8%, where do you draw that "average"?
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dermot
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Post by dermot on Oct 4, 2016 12:08:02 GMT
Interesting dilemma - I guess you could add a targetted warning only at the 'are you sure' point if someone is setting an offer of more than n% below the average of the last few days? It would only kick in if someone (through desperation or inexperience) bids at what looks to be an unusually low rate compared to recent average activity. But if the rate on just one day is swinging between (at least) 3.1% to 5.8%, where do you draw that "average"? Sure, there is no one size fits all. I guess a message could read 'prospective lenders should be aware that that there can be significant fluctuation in rates and recent orders have been matched at the higher rate of Z%'. It would be, after all, only a warning message similar to the one you get when setting reinvestment from the two markets, 3 and 5 year. It may be, of course, that there is a philanthropic billionaire trying to kickstart the UK economy by injecting cheap money ... OOh! Look, a pig flying by ....
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Post by closetotheedge on Oct 4, 2016 15:30:04 GMT
It could also be a bored forum reader who likes to create mayhem, bewilderment and outrage by sticking the odd few hundred in at a low rate and wait for the comments.
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Post by GSV3MIaC on Oct 4, 2016 15:42:28 GMT
I vote for finger trouble by someone trying to operate the website from a very small smartphone screen. 8>.
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Post by westonkevRS on Oct 5, 2016 5:40:35 GMT
It could also be a bored forum reader platform representative who likes to create mayhem, bewilderment and outrage by sticking the odd few hundred in at a low rate and wait for the comments.
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Post by easteregg on Oct 5, 2016 8:37:40 GMT
I remember reading on Zopa talk years ago that some members were suggesting that banks or other institutions with a vested interest in seeing P2P fail could flood the markets with cheap money and push out lenders who would then find that their money was not being lent out at a decent rate. I for one do not subscribe to these conspiracy theories!
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elsee
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Retired:D
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Post by elsee on Oct 5, 2016 15:46:27 GMT
Ouch, yes. I think the Market Rate was set at 5.1%. A number if lenders went in at 5.0% AER (which is typical for the morning) and then others chased it down to 4%. It then looks like 6 lenders with low-ball "lend it now offers" were accepted as far low as 3.1%. I've said here before, all customers see the rate and confirm before setting their lending offer. This seems a little low and I have raised it internally. I'm a little uncomfortable that even just a small number of customers that still chose these rates are locked in for up to 5-years. I don't know what the answer will be. There will not be an appetite for more warnings or tech restrictions. But we should be able to contact and educate. Kevin. Interesting dilemma - I guess you could add a targetted warning only at the 'are you sure' point if someone is setting an offer of more than n% below the average of the last few days? It would only kick in if someone (through desperation or inexperience) bids at what looks to be an unusually low rate compared to recent average activity. Methinks this is something that might play well with regulators if/when they take more of an interest in P2P as you can demonstrate processes in place to protect your lenders (i assume you already do some vetting to ensure that borrowers can afford repayments). westonkevRS Perhaps when asked "are you sure" it could add "today's lender rate is x%", giving the average of current lender rates?. Before BREXIT I always looked at where the bulk of the lender money was sitting and, depending on the amount I had available, either went with it or .1% point below.
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oldgrumpy
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Post by oldgrumpy on Oct 11, 2016 9:13:44 GMT
Ahem!! So no one spotted my bawllsupp on the 5 year market this morning then?
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jnm21
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Post by jnm21 on Oct 14, 2016 22:09:04 GMT
I am sorry westonkevRS , I often put your somewhat dry tone down to personality & walk on by, but I'm afraid I must be frank in this situation; have you ever considered looking for a role which is not customer facing? Well to be fair to westonkevRS his "customer facing role" on these forums came about by virtue of his being an active P2P investor, an active forumite, and then a Ratesetter employee. His RS flare here should be interpreted as meaning "RS employee" more than "RS customer services", or even "RS rep". I have my issues with how RS operates (and which have been discussed by many people ad nauseam), but given that Kev's "work" here is entirely voluntary in nature I think it's to be applauded - I'll take the odd pithy comment in my stride . Point taken (and as you probably guessed I was unaware of the voluntary nature). That said when posting publicly & mentioning the company you work for, you clearly represent that company (even albeit to a lesser extent if you have a signature signposting views as personal). I am not allowed to mention the company I work for (nothing to do with P2P) for the very reason that my personal views should be clearly that. Apologies if I was a little off-beam with my comments.
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jnm21
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Post by jnm21 on Oct 14, 2016 22:13:44 GMT
I am sorry westonkevRS , I often put your somewhat dry tone down to personality & walk on by, but I'm afraid I must be frank in this situation; have you ever considered looking for a role which is not customer facing? I would suggest that for anyone who by inference would publicly suggest that some of their customers are fools & beyond help is seriously ill suited to a customer services role. Did you miss the "not" in the quoted text? He said people are not fools. Nope. I saw it clearly - I believe that the inference was that most people are not fools from what was said later in the quote.
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jnm21
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Post by jnm21 on Oct 14, 2016 22:40:03 GMT
I remember reading on Zopa talk years ago that some members were suggesting that banks or other institutions with a vested interest in seeing P2P fail could flood the markets with cheap money and push out lenders who would then find that their money was not being lent out at a decent rate. I for one do not subscribe to these conspiracy theories! I did wonder when rates neared/hit 2% in the past! With very small amounts matched numbers of matches on the weekend, there would be times when it would not take huge sums to manipulate the market rate (I guess). I do not like market rate (vocally so), but like most things in life, it is easier to say what is the wrong answer. I would say that some changes are needed (certainly before I would ever use market rate), but I appreciate that it is not easy, hence I would suggest for discussion; - Monthly average rate (where the user can select this instead)
- Minimum rate (where the user can select this as well, with the monthly option too if available)
- Update order daily with warning that place in queue will suffer (i.e. if the trend of the monthly/market rate is down, to prevent money getting stuck)
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jcm9000
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Post by jcm9000 on Oct 31, 2016 10:00:26 GMT
Must be pay day for many, 3,290 people offering 4.7%... I'll wait patiently for another week as it dries up again...
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oldgrumpy
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Post by oldgrumpy on Oct 31, 2016 10:08:35 GMT
Must be pay day for many, 3,290 people offering 4.7%... I'll wait patiently for another week as it dries up again... Nothing to do with pay day. It's all those people who reinvest automatically at RS's chosen "Market Rate". There are lots on a Monday morning! We can now watch RS deciding not to actually lend at that "Market Rate", but to offer 0.2% less for most of the day. Add "lend right now" through the day and watch the varying rate drop to even less .... 4.2% even?
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Post by p2plender on Oct 31, 2016 13:09:50 GMT
Way way under what I'll lend out at the mo. Have it piling up and ready to move it which is par of course in this game. Must be a record amount sat waiting in the 5yr to be lent.
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