mark123
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Post by mark123 on Feb 1, 2017 17:42:41 GMT
New blog post: "Our blog on 3 November 2016 described how we are building greater flexibility into the Provision Fund in order to make it less binary and more robust, and that we intend to update the Lender Terms with effect from 1 March 2017. Today we are publishing the updated Lender Terms, one month in advance of them coming into effect. This is an important update and we would encourage you to review the new terms. You can see them here. We are also publishing a summary of changes to Lender Terms listing any changes made since October 2015, which can be viewed here. We believe that a more flexible Provision Fund is an improvement that is in the interest of investors. But we understand that any change can be unsettling. Therefore, if anybody with an active investment is not comfortable with this change and wishes to withdraw before 1 March, we would be happy to waive the early exit fees. Investors seeking to do this must call us on 020 3142 6226 before withdrawing."Interested to hear people's comments. Regards, Mark
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Post by ruralres66 on Feb 1, 2017 18:03:00 GMT
I think a complaint should be made that something as important as this was just placed on a Blog. It should be emailed directly to all lenders. I don't often check the blog as it's rather random in information giving. Thanks for flagging this as I would have been none the wiser!
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Post by Deleted on Feb 1, 2017 18:07:16 GMT
I think a complaint should be made that something as important as this was just placed on a Blog. It should be emailed directly to all lenders. I don't often check the blog as it's rather random in information giving. Thanks for flagging this as I would have been none the wiser! We have also received notification by email in the Jan17 statement email. Having said that, you could argue this information should have an email of its own!
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r00lish67
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Post by r00lish67 on Feb 1, 2017 18:25:24 GMT
E-mailed now and, significantly, a good opportunity for anyone who was thinking about the exit door:
" if anybody with an active investment is not comfortable with this change and wishes to withdraw before 1 March, we would be happy to waive the early exit fees..."
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Post by Financial Thing on Feb 1, 2017 18:48:27 GMT
What is Ratesetter doing? Some strange terms and conditions that have been added about the PF. “Stabilisation Period”, “Interest Reduction” or a “Capital Reduction” I don't know what to think.
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wapping35
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Post by wapping35 on Feb 1, 2017 18:48:30 GMT
I assume that is how they are dealing with the legal argument that this change is retrospective on existing leaders. Edit: I see as if by magic the PF Data page has today been updated to show "Expected bad debt rate" falling from 3.1% to 3.0%. Interesting given the expected bad debt levels for 2014-2016 are 4.06%, 3.92% & 3.51%... All way above that 3.0% level and all on the rise , so why did that PF expected bad debt rate fall from 3.1% to 3.0% ? www.ratesetter.com/aboutus/statistics
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registerme
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Post by registerme on Feb 1, 2017 18:53:49 GMT
mark123, thank you, I would have missed this without your posting about it.
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alender
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Post by alender on Feb 1, 2017 19:07:46 GMT
As the bad loans are getting worse and the PF barely able to cope in good times RS are looking to prevent a resolution event if/when the PF can not cope, this is because a resolution event will be the end of RS. If there is a resolution event it is a line in the sand, money is then pooled and investors will receive all loan repayments less admin costs.
They are now making investors take a haircut so they can still operate the company, which means the directors can still have their salary and perks. Also if RS are in trouble there is no line in the sand and investors have no choice but to throw good money after bad keeping RS alive for a bit longer.
For me the rates would have to substantially increase to take into account these new added risks
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r00lish67
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Post by r00lish67 on Feb 1, 2017 19:13:12 GMT
What is Ratesetter doing? Some strange terms and conditions that have been added about the PF. “Stabilisation Period”, “Interest Reduction” or a “Capital Reduction” I don't know what to think. There's been some historic discussion about this on this forum, it's been coming for a while. Essentially Ratesetter want to move away from 'all or nothing' (nothing being the 'resolution event' which effectively would have meant catastrophe for Ratesetter). Is it a good thing? In some ways yes, it shows RS do have foresight in making their business model more resilient. On the other hand, there is the moral hazard aspect - i.e. Ratesetter will now have less incentive to select only the most saintly of borrowers. The definitely good thing is they've allowed us to time to digest what the changes mean, and bail out cost-free if we so choose.
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oik
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Post by oik on Feb 1, 2017 20:42:17 GMT
From the replies here I wonder what proportion of Ratesetter lenders won't be aware of the changes. I missed the email because it was titled "Your January 2017 statement" and didn't look because I keep my own tabs on the numbers. Reading the couple of lines about the change of terms they seem to have done their best to make the changes look almost too trivial to mention.
Compare that with one of the banks I use who made it clear on their website they were dropping a variable rate by 0.25% in 2 months time, followed that with a letter then pestered me with two further written reminders just before the change.
Presumably the bank felt it needed to do that much to keep the regulators happy.
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Post by bracknellboy on Feb 1, 2017 20:56:31 GMT
...... Compare that with one of the banks I use who made it clear on their website they were dropping a variable rate by 0.25% in 2 months time, followed that with a letter then pestered me with two further written reminders just before the change. Presumably the bank felt it needed to do that much to keep the regulators happy.Nah, I doubt that was the reason. Haven't you heard: apparently all bankers are umm well whatever you want to paste in, but in the general public's mind it generally isn't a positive one. So its an indisputable fact that the reason all those snail mail paper notifications are sent out is because "the banks" are evil co-conspirators plotting the downfall of planet earth by ensuring that they do their bit to contribute to the maximum possible deforestation - no doubt from the most ecologically sensitive locations on the planet - to ensure that we all end up frying in the shortest time possible. After all, its the ultimate way to ****w your customers, so it must be true.
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jimc99
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Post by jimc99 on Feb 2, 2017 1:59:16 GMT
E-mailed now and, significantly, a good opportunity for anyone who was thinking about the exit door: " if anybody with an active investment is not comfortable with this change and wishes to withdraw before 1 March, we would be happy to waive the early exit fees..." Hi... can someone kindly post the link to this facility to sell out free of fees. Can't find it anywhere on the site!! Anyone tried it yet? Thanks. EDIT...Never mind, seems you have to be logged out to see their blog section...wonderful!!!!
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Post by Deleted on Feb 2, 2017 2:51:06 GMT
Therefore, if anybody with an active investment is not comfortable with this change and wishes to withdraw before 1 March, we would be happy to waive the early exit fees. Investors seeking to do this must call us on 020 3142 6226 before withdrawing." Well yeah, I was wondering about the legal aspect of unilaterally changing the terms of the loan deals we signed. An early exit is looking very, very tempting now...
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Greenwood2
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Post by Greenwood2 on Feb 2, 2017 7:58:07 GMT
Reducing interest rates unilaterally (for a short period) to cover the PF, well maybe I could live with that. Taking a chunk of our capital unilaterally (to prop up the PF) is definitely not something I signed up for. How much can they take? As much as they like?
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Post by caveman38 on Feb 2, 2017 8:36:20 GMT
Would somebody please explain in layman's terms what the changes mean that may lead us to wish to withdraw our money. I have to confess to not being able to interpret the information too well. Thanks.
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