jimc99
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Post by jimc99 on Sept 5, 2016 7:09:00 GMT
On the about us page in the help center there is a pie chart showing some £94M is lent out by RS to other lending businesses.
What's this about please?
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jimc99
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Post by jimc99 on Sept 6, 2016 12:44:28 GMT
Kev....to what lending companies are RS lending our money?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 6, 2016 12:56:45 GMT
RS provide loans to Commuterclub & Giffgaff customers through those sites so could be that. May also cover the Gradurates loan book RS took over.
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Post by westonkevRS on Sept 6, 2016 17:07:51 GMT
Kev....to what lending companies are RS lending our money? This is one area where it's difficult to be transparent. We do not name these lending businesses because of our competitive requirements but also their contractual privacy (they have the right to keep their funding choices quiet). This type of lending does make RateSetter a middle-man. And to be blunt P2P is all about cutting out the waste and inefficiency in financial services to give you lenders a better return. However we use these partners rather than do it ourselves because they are experts in their chosen fields, albeit lending on mobile phones, HP on cars, travel, etc. I'm not saying these are actual examples, but it's better to use these lending experts rather than try and do this ourselves from scratch which would be difficult and inevitably include mistakes. I hope this is somewhat useful, despite me not being able to disclose names. Either way, it all adds to our diverse lending portfolio, which we see as a safety feature and allows for further growth in lending for you. Kevin.
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jonah
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Post by jonah on Sept 6, 2016 19:42:34 GMT
I understand you can't name names, but can you confirm which category this company falls into? www.giffgaff.com/money/loansat the bottom they publicly declare they introduce for ratesetter. Which is good for them, RS and us lenders for lots of reasons. Would loans via this route be personal (I.e. To the end customer) or is this an example of to a business? (not sure if this breaks the forum rules on naming borrowers So I have self reported this just in case!)
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Post by westonkevRS on Sept 6, 2016 20:21:06 GMT
I understand you can't name names, but can you confirm which category this company falls into? www.giffgaff.com/money/loansat the bottom they publicly declare they introduce for ratesetter. Which is good for them, RS and us lenders for lots of reasons. Would loans via this route be personal (I.e. To the end customer) or is this an example of to a business? (not sure if this breaks the forum rules on naming borrowers So I have self reported this just in case!) jonahI think giffgaff are actually marked as standard loans rather than " lending businesses". The easy way to confirm is to download the portfolio data-set, and look at small value loans. The average is around £400, and most are sub £700. They'll probably be marked as standard loans.
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jimc99
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Post by jimc99 on Sept 6, 2016 22:37:00 GMT
Kev....to what lending companies are RS lending our money? This is one area where it's difficult to be transparent. We do not name these lending businesses because of our competitive requirements but also their contractual privacy (they have the right to keep their funding choices quiet). This type of lending does make RateSetter a middle-man. And to be blunt P2P is all about cutting out the waste and inefficiency in financial services to give you lenders a better return. However we use these partners rather than do it ourselves because they are experts in their chosen fields, albeit lending on mobile phones, HP on cars, travel, etc. I'm not saying these are actual examples, but it's better to use these lending experts rather than try and do this ourselves from scratch which would be difficult and inevitably include mistakes. I hope this is somewhat useful, despite me not being able to disclose names. Either way, it all adds to our diverse lending portfolio, which we see as a safety feature and allows for further growth in lending for you. Kevin. Okay, thanks for the response.☺ Hope RS are making a good profit from lending our money to these higher risk companies. As you know they would probably be paying us around 12% if we lent direct to the sites that specialise in these loans.
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adrianc
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Post by adrianc on Sept 7, 2016 8:41:49 GMT
This is one area where it's difficult to be transparent. We do not name these lending businesses because of our competitive requirements but also their contractual privacy (they have the right to keep their funding choices quiet). This type of lending does make RateSetter a middle-man. And to be blunt P2P is all about cutting out the waste and inefficiency in financial services to give you lenders a better return. However we use these partners rather than do it ourselves because they are experts in their chosen fields, albeit lending on mobile phones, HP on cars, travel, etc. I'm not saying these are actual examples, but it's better to use these lending experts rather than try and do this ourselves from scratch which would be difficult and inevitably include mistakes. I hope this is somewhat useful, despite me not being able to disclose names. Either way, it all adds to our diverse lending portfolio, which we see as a safety feature and allows for further growth in lending for you. Kevin. Okay, thanks for the response.☺ Hope RS are making a good profit from lending our money to these higher risk companies. As you know they would probably be paying us around 12% if we lent direct to the sites that specialise in these loans. ...but without the protection from default.
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Liz
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Post by Liz on Sept 7, 2016 8:48:22 GMT
Okay, thanks for the response.☺ Hope RS are making a good profit from lending our money to these higher risk companies. As you know they would probably be paying us around 12% if we lent direct to the sites that specialise in these loans. ...but without the protection from default. Exactly. It all depends on what level of risk/return, members/investors want to take on. Also, direct lending involves a lot of time consuming Due Dil.
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jimc99
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Post by jimc99 on Sept 7, 2016 9:52:31 GMT
Maybe these loans being made by RS to high risk borrowers are covered by the provision fund? If so it would not take much of a percentage default on £94M of loans to take a big chunk out of, or wipe out, the PF. Who knows exactly what RS are using OUR money for?
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adrianc
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Post by adrianc on Sept 7, 2016 10:06:05 GMT
Maybe these loans being made by RS to high risk borrowers are covered by the provision fund? If so it would not take much of a percentage default on £94M of loans to take a big chunk out of, or wipe out, the PF. Who knows exactly what RS are using OUR money for? If you don't like what RS are doing with the money you entrust to them, can I suggest you vote with your feet?
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jimc99
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Post by jimc99 on Sept 7, 2016 10:21:44 GMT
Maybe these loans being made by RS to high risk borrowers are covered by the provision fund? If so it would not take much of a percentage default on £94M of loans to take a big chunk out of, or wipe out, the PF. Who knows exactly what RS are using OUR money for? If you don't like what RS are doing with the money you entrust to them, can I suggest you vote with your feet? Why so negative a comment? Is it unreasonable to ask questions about around 1/6th of RS total amount on loan that's gone to these high risk lending companies. If your not interested then fine. I am.
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adrianc
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Post by adrianc on Sept 7, 2016 11:07:26 GMT
Well, given that RS don't publish the lending criteria for the other 5/6ths...
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alender
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Post by alender on Sept 7, 2016 11:10:09 GMT
If you don't like what RS are doing with the money you entrust to them, can I suggest you vote with your feet? Why so negative a comment? Is it unreasonable to ask questions about around 1/6th of RS total amount on loan that's gone to these high risk lending companies. If your not interested then fine. I am. Agreed, we have a right to know how our money is used otherwise how can we assess risk. Some of these things only come to light after you have tied up your money for a number of years so voting with you feet is costly. How many new investors to RS known about this, I only found out because of this Forum. Interesting to know where money from the difference in interest rate goes, some to PF maybe or all to RS profits. On the face of it looks like some of our money is used for higher risk investments than it looks on the surface.
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jimc99
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Post by jimc99 on Sept 7, 2016 11:25:16 GMT
Well, given that RS don't publish the lending criteria for the other 5/6ths... Don't most lenders assume that their money is being lent as personal loans to individuals? RS is supposed to be a p2p platform after all. That such a large part of current loans are actually lent to other lending companies and not individuals is a concern to me, along with the seemingly ever reducing Provision Fund. I have been withdrawing all my repayments for the past 15 months. Unfortunately I can't reduce my lending to zero for another 20 months or so unless I'm prepared to take a hit of 3% or so by selling out. Just hope enough investors have similar mind sets as yours and stay with RS without questioning their practices so the platform survives until I get out.
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