Post by RateSetter on Jul 22, 2019 16:40:14 GMT
Good afternoon all. We have posted the following update in the RateSetter notices section of the member area this afternoon.
RateSetter discontinued wholesale lending (lending to specialist lending businesses) at the end of 2016. To ensure an orderly wind-down, RateSetter acquired three companies associated with a former wholesale lending partner - Vehicle Credit Limited (VCL), Vehicle Stocking Limited (VSL) and Adpod Limited - in order to protect our customers from loans which were not business-as-usual. With these acquisitions, RateSetter took on the companies’ loan assets and their debt of £51.4m.
Over the past few years we have fully integrated the motor finance operations of VCL and VSL into the RateSetter platform, including their customers, staff, offices, technology and product, while in the case of Adpod we wrote off the investment and discontinued its operations. We planned to repay the debt by August 2022 from the proceeds of the loan assets on the companies’ balance sheets, profit from future lending and support from RateSetter.
The debt balance is now down to £25.9m. It is reported on our website as ‘Wholesale legacy’ and it represents 3% of the overall RateSetter loan portfolio. As with all loans in the RateSetter portfolio, there is appropriate provision for future performance.
We have reviewed the repayment profile in place for the loans. Proceeds from the loans have been in line with expectations, but future lending slowed during the process of integrating the companies into RateSetter.
Because of the slower growth in this area, we have decided to move the final repayment date for the balance of the debt to August 2024 with repayments of capital and interest continuing to be made monthly from the proceeds of the loans, profits from future lending and support from RateSetter.
No action is required by investors and we do not believe this changes the risk profile of the loans or the overall RateSetter loan portfolio.
Over the past few years we have fully integrated the motor finance operations of VCL and VSL into the RateSetter platform, including their customers, staff, offices, technology and product, while in the case of Adpod we wrote off the investment and discontinued its operations. We planned to repay the debt by August 2022 from the proceeds of the loan assets on the companies’ balance sheets, profit from future lending and support from RateSetter.
The debt balance is now down to £25.9m. It is reported on our website as ‘Wholesale legacy’ and it represents 3% of the overall RateSetter loan portfolio. As with all loans in the RateSetter portfolio, there is appropriate provision for future performance.
We have reviewed the repayment profile in place for the loans. Proceeds from the loans have been in line with expectations, but future lending slowed during the process of integrating the companies into RateSetter.
Because of the slower growth in this area, we have decided to move the final repayment date for the balance of the debt to August 2024 with repayments of capital and interest continuing to be made monthly from the proceeds of the loans, profits from future lending and support from RateSetter.
No action is required by investors and we do not believe this changes the risk profile of the loans or the overall RateSetter loan portfolio.
