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Post by d_saver on Feb 10, 2017 17:12:47 GMT
I don't mind funding for new purchases, but the one thing that draws me to SS is the SM and the ability to grab what I want without cash drag. I then pay for it right away.
At the moment, IMO, loans are sometimes announced via email too late for some to arrange transfer of funds, given SS is not very quick at this. If it were a MT type system, almost instant in and out, it would be better. The difficulty with getting things on the SM I do not mind. It's a great game. Get somthing I want then pay for it. I often pop in, grab somthing, pay later. Plopping a few grand in there in the 'hope' I _might_ get something - Unlikely. This is the main reason I don't really use other secondary markets. All this may not make much difference to the institutions, but I imagine a lot of small investors such as myself will think this change is a huge shame. I find the excuse a bit poor re Lendy liability. Why not just leave the liability with the seller until paid for. I realise that some sales may fail, but you ban/chastise that user and put the part back on the market again. Seller does not get paid until funds received. Problem solved?
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ben
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Post by ben on Feb 10, 2017 17:14:15 GMT
INPL on PM purchases is pointless because we already know in advance to deposit funds on the right day. You never know what might crop up on the SM so you either miss out, or have money sitting there earning no interest. It's disappointing to see SS abandon one of their best features. They had no real choice in this, it was one of the many things that would never have passed the FCA. They can get away with prefunding of loans as they have not launched and the money is held seperate.
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SteveT
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Post by SteveT on Feb 10, 2017 17:14:43 GMT
I find the excuse a bit poor re Lendy liability. I suspect getting their FCA authorisation is at the root of it! [crossed with ben]
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Post by d_saver on Feb 10, 2017 17:20:28 GMT
I find the excuse a bit poor re Lendy liability. I suspect getting their FCA authorisation is at the root of it! [crossed with ben ] I suspect that is true. It is for me though one of the reasons I found the SS platform so nice. Since I joined it only a few months back (late to game), it seems that each time they do something, I'm thinking that's a step in the wrong direction. It'd be amazing if this does not affect SM market liquidity, and that is for me one of the main draws of this platform.
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jamesc
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Post by jamesc on Feb 10, 2017 17:20:41 GMT
Together with the new default loan policy - with clarity on overdue loans which is welcome, here - I think this will lead to some significant changes in the way the SM operates. Interesting times as they say. All the new default policy shows is they have been lying to us all this time and they have had their wrists slapped by the FCA
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 10, 2017 17:24:10 GMT
Together with the new default loan policy - with clarity on overdue loans which is welcome, here - I think this will lead to some significant changes in the way the SM operates. Interesting times as they say. All the new default policy shows is they have been lying to us all this time and they have had their wrists slapped by the FCA At least we have one now. What we don't know (AFAICS) is if it has been implemented or not? If so there are several loans that have defaulted (according to the new 180-day 0verdue rule...)
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SteveT
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Post by SteveT on Feb 10, 2017 17:25:34 GMT
It'd be amazing if this does not affect SM market liquidity, and that is for me one of the main draws of this platform. I don't think it will have much (if any) effect on the non-toxic 12% loans with positive days remaining, which covers my entire loan book. Indeed, the new defaults policy might boost demand for loans with modestly negative days. The bigger question for me is how many more non-toxic 12% loans we're going to see coming through the SS pipeline!
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SteveT
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Post by SteveT on Feb 10, 2017 17:27:31 GMT
What we don't know (AFAICS) is if it has been implemented or not? It says "Effective 1st March 2017" at the top, so we should be able to see by 8th March (5 working days)
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r1200gs
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Post by r1200gs on Feb 10, 2017 17:27:43 GMT
I find the excuse a bit poor re Lendy liability. I suspect getting their FCA authorisation is at the root of it! [crossed with ben ] I suspect you are right. For me though, it is the end of the SM as a buyer. Idle cash is best on the bank where I can have it on a platform and making money in minutes, not sitting on SS while I tear my hair out trying to buy on the SM.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 10, 2017 17:29:15 GMT
What we don't know (AFAICS) is if it has been implemented or not? It says "Effective 1st March 2017" at the top, so we should be able to see by 8th March (5 working days) So it does... missed it! It will be interesting to see what happens to PBL74 & 75 on the 1st
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Post by d_saver on Feb 10, 2017 17:31:14 GMT
It'd be amazing if this does not affect SM market liquidity, and that is for me one of the main draws of this platform. I don't think it will have much (if any) effect on the non-toxic 12% loans with positive days remaining, which covers my entire loan book. Indeed, the new defaults policy might boost demand for loans with modestly negative days. The bigger question for me is how many more non-toxic 12% loans we're going to see coming through the SS pipeline! It will be interesting to see. I would say I doubt I would have bought half what I did without the SM facility in place. Not that I bought randomly, but the opportunity arose for some good loans and I picked up parts over months. I honestly do not think I would be anywhere near so invested in the platform if that had not been possible. There are other excellent platforms like MT, but I only ever generally take the new loans because the SM is dry, like here, and pre-funding leads to cash just sitting there and you never know what/how much will show up. It may be all this is needed for FCA etc., but it does take away one of the things that drive small investors to SS (not that they care, probably, everything being oversubscribed as it is).
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dawn
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Post by dawn on Feb 10, 2017 17:35:58 GMT
One of the main problems with having to have funds avaliable before buying on the SM is the slow process of SS dealing with deposits - currently 24-48 + hours depending on all sorts of things including (but not limited to) weekends. I have sent an email asking them to improve the processing of deposits in line with the removal of INPL for SM purchases.
"... the removal of INPL for SM purchases (whilst understandable in it's own right) needs to go hand-in-hand with an improvement to the processing of deposit transactions. Currently I can deposit any time during the day but it won't appear in my account until some time the next day (or later at weekends). If that continues it is likely to adversely affect the ability of people to purchase on the SM especially over weekends. I have no problems with only buying on the SM with money on account - I just want to be sure the money I transfer in is available on account as soon as possible. Other P2P sites I use either have debit card transactions (which lead to instant availability of funds - Funding Circle and ABLrate) or have very quick processing of deposits (Moneything and Collateral - by faster payments and they take normally less than 10 minutes for funds to be available). Please can you give lenders some assurance that the processing of deposits will also be greatly improved (by either of the above methods or a different method if that is more suitable) in-line with the removal of INPL for SM purchases."
We'll see what they say.....
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twoheads
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Programming
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Post by twoheads on Feb 10, 2017 17:38:43 GMT
Shame to lose INPL on the SM.
This means that one will need a cash buffer in order to play the SM. Either:
- by selling some stuff in the hope that better stuff will appear,
- by dumping in some 'spare' cash to buy stuff with, which will be replenished by selling the less good stuff.
Either way, it's money you will need in your SS balance on which you will not be earning interest.
Haven't decided which way I will play it in March.
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toffeeboy
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Post by toffeeboy on Feb 10, 2017 17:39:12 GMT
It says "Effective 1st March 2017" at the top, so we should be able to see by 8th March (5 working days) So it does... missed it! It will be interesting to see what happens to PBL74 & 75 on the 1st PBL081 will be over 180 days on 1st March as well.
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Post by d_saver on Feb 10, 2017 17:39:27 GMT
Pretty sure this change will mean I will revert to mostly looking at just new loans for the most part. If my money's going to sit idle whilst waiting to be invested, I might as well send it to bondmason and let them invest it for me too
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