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Post by webbski9 on Nov 15, 2016 15:13:22 GMT
Understood Naseem,Thanks
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Post by newlender on Nov 15, 2016 19:37:48 GMT
Does anyone here have an idea of the average default rate of pay-day loans? They have sky-high rates for a reason.
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Post by newlender on Nov 15, 2016 20:05:07 GMT
Exactly. I think that the concept here is a good one (potentially) but for that kind of risk I would need to proceed very carefully. I am getting >7% pa with Zopa Plus and so far have lost £40 in defaults on an investment of >£5K. The rates here seem on the low side to me but it might be worth a small punt to test the waters.
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Neil_P2PBlog
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Post by Neil_P2PBlog on Nov 15, 2016 20:37:10 GMT
I have been unable to find great data on payday default rates, where did you get the 20%+ @magenta14 ? The link above (http://www.lenders4u.co.uk/the-lending-well-loans-info-closed/) just says 'historically between 10-20%' but gives no source. This guardian article on wonga says its default rates were between 6.6% and 6.9%.
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bigfoot12
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Post by bigfoot12 on Nov 16, 2016 8:33:54 GMT
Does anyone here have an idea of the average default rate of pay-day loans? They have sky-high rates for a reason. Greater than 20% default rate (Sector) but The Money Platform are suggesting that they expect less at circa 7%. Perhaps TMP could restate their Own expected default figure and how it is that they arrived at a far lower % than the wider Sector? Hi, Thanks for that. Is that 20% of loans default, or is it an annual rate?
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11025
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Post by 11025 on Nov 16, 2016 8:49:47 GMT
After reading all the info available I don't see a future in this one for me , if there was the potential to spread over multiple loans then I would have a go ,
but to have to put a chunk in one loan with very limited information , no security and no provision fund ....
For the time being I will observe from the side-lines
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markr
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Post by markr on Nov 16, 2016 22:18:06 GMT
Registration was easy, uploading ID documents was smooth and I was approved the next day.
Adding funds was a bit tricky, I put debit card details in and clicked save, but the website just went back to the empty wallet page with no error or explanation. I didn't know if there was a problem with the website, my card, or something else. After the third attempt to enter the card, I got an automated call from Santander's fraud department asking to confirm the Mangopay transaction. I know it warns about that, but it would be helpful if the transaction fails to go to a page that suggested waiting before trying again rather than back to the card details form that encourages another try! It also says that it will make a test transaction of 50p, but I suspect it actually deducts £50 because the message asked me to confirm a £150 transaction (presumably my 3 attempts lumped together). Anyway, after confirming that transaction, the next attempt went smoothly.
In the "My Offers" matrix thing, I can add more offers than I have funds for, presumably they'll be matched as loans become available until I run out of funds? What I can't seem to do, and I'd like to do, is add more than one offer to the same amount/duration. If I deposit £1000, I may like to offer, say, 4 lots of £250 12 week loans, for diversity reasons. But it seems once I've added a £250 12 week loan, attempting to add another one deletes the first one.
Also, at the moment it says that there are 8 loans in the 0.3%/£250/12 week market, and 3 offers (including mine), but none of the offers seem to be matching to the loans. Am I misunderstanding something here?
It does seem the "race to the bottom" effect is happening already, with most of the loans and offers in each market in the lower interest bands, so the headline figures on the "I want to lend" page are optimistic to say the least. I'll also feel a lot more comfortable when I can lend in smaller chunks than £250.
[edit: oh, yes, the other surprise was when depositing funds there was a warning that there's a £1 fee for withdrawing funds. This doesn't appear to be mentioned anywhere else, which is a bit sneaky]
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TitoPuente
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Post by TitoPuente on Nov 16, 2016 22:32:20 GMT
I see that the "earn" back the principal + interest have been replaced by "you would receive back". It is a good sign that a platform reacts positively to feedback.
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adrianc
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Post by adrianc on Nov 16, 2016 23:22:28 GMT
[edit: oh, yes, the other surprise was when depositing funds there was a warning that there's a £1 fee for withdrawing funds. This doesn't appear to be mentioned anywhere else, which is a bit sneaky] Oh, that's naughty...
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david42
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Post by david42 on Nov 17, 2016 8:30:43 GMT
Adding funds was a bit tricky, I put debit card details in and clicked save, but the website just went back to the empty wallet page with no error or explanation. I didn't know if there was a problem with the website, my card, or something else. After the third attempt to enter the card, I got an automated call from Santander's fraud department asking to confirm the Mangopay transaction. I know it warns about that, but it would be helpful if the transaction fails to go to a page that suggested waiting before trying again rather than back to the card details form that encourages another try! It also says that it will make a test transaction of 50p, but I suspect it actually deducts £50 because the message asked me to confirm a £150 transaction (presumably my 3 attempts lumped together). Anyway, after confirming that transaction, the next attempt went smoothly. I had the same problem and the Money Platform told me to contact my bank, who unblocked the transaction. The Money Platform have told me they will add an error message when the debit card registration fails, which should reduce the confusion. What I can't seem to do, and I'd like to do, is add more than one offer to the same amount/duration. If I deposit £1000, I may like to offer, say, 4 lots of £250 12 week loans, for diversity reasons. But it seems once I've added a £250 12 week loan, attempting to add another one deletes the first one. Once an offer has been matched, the offer remains in place. So your single offer of £250 12 week loans could get matched four times. But I don't think there is any way to make offers at multiple rates for the same amount and time period. Also, at the moment it says that there are 8 loans in the 0.3%/£250/12 week market, and 3 offers (including mine), but none of the offers seem to be matching to the loans. Am I misunderstanding something here? This confused me. I have concluded that the count of loans is not a count of loan requests that are waiting to be filled, but a list of loans that are in place having already been filled. I no longer think there is a queue of loan requests waiting to be filled because I deposited £5,000 3 days ago and placed offers against all loan sizes of 6 weeks or longer, but I have had only one loan matched so far. I would have deposited a lot less if I had realised that I could make offers that exceeded my funds. I don't think they have many borrowers yet. Yesterday they had a total of 26 loans in place for a total of £16,750, and 52 unfilled offers from lenders for a total of £19,250. In the absence of any statistics from the platform I have no idea what default rate to expect or what rate I should offer loans for to make a reasonable return after defaults. Unless more information is provided I am unlikely to continue investing in this platform after my initial experiments.
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Post by The Money Platform on Nov 17, 2016 11:56:54 GMT
[edit: oh, yes, the other surprise was when depositing funds there was a warning that there's a £1 fee for withdrawing funds. This doesn't appear to be mentioned anywhere else, which is a bit sneaky] Thanks for pointing out the £1 withdrawal charge. This is very clearly and prominently displayed to lenders when they try and deposit funds and is displayed upon withdrawal. Any suggestions on how to make this clearer or thoughts around this would be extremely welcome - please message me directly. We are a new company and are expecting to develop considerably over the next few months - we greatly appreciate your feedback.
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Post by Deleted on Nov 17, 2016 13:40:52 GMT
Thanks for pointing out the £1 withdrawal charge. This is very clearly and prominently displayed to lenders when they try and deposit funds and is displayed upon withdrawal. Any suggestions on how to make this clearer or thoughts around this would be extremely welcome - please message me directly. We are a new company and are expecting to develop considerably over the next few months - we greatly appreciate your feedback. Well, as a new company you should now know that charging someone to get their own money is generally considered a no-no in the UK. It might be acceptable in other countries but would be considered unaccepable to most here. I don't pay such a fee to any of a large number of platforms and banks.
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dandy
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Post by dandy on Nov 17, 2016 14:52:43 GMT
I think RS charge £3 for a withdrawal after the first three (which are free) unless I am mistaken ...
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Neil_P2PBlog
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Post by Neil_P2PBlog on Nov 17, 2016 15:14:16 GMT
I think RS charge £3 for a withdrawal after the first three (which are free) unless I am mistaken ... I can't see anything from RS about charges, it just says: "One-Off Withdrawal Click below to set up a one-off withdrawal to your bank account. Transfers are sent the next working day, free of charge."
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amphoria
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Post by amphoria on Nov 17, 2016 15:15:07 GMT
I think RS charge £3 for a withdrawal after the first three (which are free) unless I am mistaken ... RS don't charge for withdrawals from the holding account. <Crossed with Neil>
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