IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
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Post by IFISAcava on Feb 5, 2020 21:38:33 GMT
Without telling them explicitly that was what was happening. That's the bit that grates most.
Well it's obvious why they didn't.... they'd have had very little of their investor base left as most would have cashed out in December at minimal cost.
So this way they still lose them but manage to take a chunk of their capital. Genius.
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Post by jojo on Feb 5, 2020 22:00:58 GMT
I am an investor from 2016 and i have to admit i did not understand the changes in term and conditions in December, specially the interest shortfalls fee changes.
Now, when i reflect back to the last 4 years. When i did invest, the rate on the now call "growth", was at 4.5% which was for me a good rate.
The last 3 years, the rate of 6-6.5% has been a bonus for me because i was expected more around 4.5 - 5%.
Reflecting on LW strategy, my view is that it was of the best interest for investor to take action instead of leaving the situation of the shield deteriorated. Like i have seen on this forum, better to have lower rate and better protection on capital.
The current situation is not great but with the changes made, it should get better and most important, now I feel my capital is more protected than before.
Investors are aware that the weak point of any financials institutions is to have a sudden increase of exit capital and with December's changes, LW have avoid this situation and LW keeps under control the possible exit flow.
My personal view is that people who are withdrawing with fees are building up the shield so on one hand I am not happy to see investors leaving but on the other hand, they are funding the shield so my futures interests. Also, I feel there is no panic at all from investors, from what I have read on this forum, people have access to their money in hours which is the sign that there are no problems to find new lenders.
Last point on lenders, from statistics, LW have 6800 lenders and maybe less than 50 have complain on the forum.
I have no need of my savings now but might need in 6-12 month time so what i have decided is to draw interest and capital repayment on monthly basis which is total free , so in 12 month I would have draw 20 % of my total capital and maybe more if there are early repayments.
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Post by Undecided on Feb 6, 2020 8:53:53 GMT
But are leavers really funding the shield? LW say the interest shortfall is going to the buyer (not LW). Isn’t the shortfall charge intended to allow the buyer to receive interest at 5.4% now while we receive 2% if we stay! As I understand it the missing 3.4% goes to the shield but new investors pay a much lower amount to the shield. I may be wrong though because it’s very hard to understand how it works now even after many conversations with LW over the last month.
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Post by carol167 on Feb 6, 2020 9:01:32 GMT
But are leavers really funding the shield? LW say the interest shortfall is going to the buyer (not LW). Isn’t the shortfall charge intended to allow the buyer to receive interest at 5.4% now while we receive 2% if we stay! As I understand it the missing 3.4% goes to the shield but new investors pay a much lower amount to the shield. I may be wrong though because it’s very hard to understand how it works now even after many conversations with LW over the last month.
Just remember LW's headling on their frontpage :
"The fair and simple P2P platform"
So it must be obvious how it works.
Or is it two lies in one sentance ?
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Post by dan1 on Feb 6, 2020 9:50:20 GMT
But are leavers really funding the shield? LW say the interest shortfall is going to the buyer (not LW). Isn’t the shortfall charge intended to allow the buyer to receive interest at 5.4% now while we receive 2% if we stay! As I understand it the missing 3.4% goes to the shield but new investors pay a much lower amount to the shield. I may be wrong though because it’s very hard to understand how it works now even after many conversations with LW over the last month. Just remember LW's headling on their frontpage : "The fair and simple P2P platform" So it must be obvious how it works.
Or is it two lies in one sentance ? Lending Works promote their ethical values too. From one of their backers, Maven Capital Partners (my bold): I'd recommend those still investing to keep an eye on investor annual/interim reports from the likes of Maven and Pollen Street.
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ashe
Posts: 53 
Likes: 36
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Post by ashe on Mar 8, 2020 17:12:23 GMT
I've only just noticed this happened. At most, I must have just glanced at the first paragraph of the email which talked about changes to 'the way my investment works', and not worried about it, since I wasn't planning to invest any more at the time. I didn't realise until now that the interest they've been paying me must have changed.
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Post by Undecided on Mar 9, 2020 8:40:25 GMT
Have a look at your monthly statements, you will be shocked. I have complained to the ombudsman and FCA after getting nowhere with LW.
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Post by jojo on Mar 9, 2020 9:56:18 GMT
Have a look at your monthly statements, you will be shocked. I have complained to the ombudsman and FCA after getting nowhere with LW. Have a look at your Share ISA statement in your retail bank and you might be shocked too. When i used to say on this forum that all the changes was relative if you compare to the interest/banking environment. Now I can add that when you have stocks markets losing 25 % in 2 weeks, the 2% difference on rates seems all relative to me.
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Post by Undecided on Mar 9, 2020 15:36:25 GMT
I don’t know what stock market you are looking at but none of the ones I have looked at have lost 25% in 2 weeks. Whilst they have gone down a lot they will come back up whereas LW will never come back to the original level and we have no idea what level they will come back to. My rate with LW dropped by 5% overnight and the selling fee increased from 0.5% to 5.6%!
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Post by carol167 on Mar 9, 2020 16:46:54 GMT
I don’t know what stock market you are looking at but none of the ones I have looked at have lost 25% in 2 weeks. Whilst they have gone down a lot they will come back up whereas LW will never come back to the original level and we have no idea what level they will come back to. My rate with LW dropped by 5% overnight and the selling fee increased from 0.5% to 5.6%!
And more importantly.... the stock market tends to react in advance or in real time, whereas any bad effects of the virus on people who have taken out p-2-p loans won't be felt for some time to come yet. Enjoy your small <2% returns while you can.
Hopefully I will be wrong and it will not be too bad, sadly I suspect we have a lot worse to come yet, the full knock on effects of which we can only guess at.
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Post by jojo on Mar 9, 2020 17:35:31 GMT
I don’t know what stock market you are looking at but none of the ones I have looked at have lost 25% in 2 weeks. Whilst they have gone down a lot they will come back up whereas LW will never come back to the original level and we have no idea what level they will come back to. My rate with LW dropped by 5% overnight and the selling fee increased from 0.5% to 5.6%! Ok I am sorry, my bad, FTSE went From 7700 to 5950 , that is 23 % drop , my mistake , not 25 %, some energy companies have lost 30 to 35 % in one day today, just to have an idea of how fast can risk asset can move, so i feel p2p is not a risk asset because it doesn't move with such volatility. Whilst they have gone down a lot they will come back up : I was trader in 2005 and I remember people telling the same , you should have seen their face in 2009 when we hit bottom, lots of people never came back from the collapse, and from what i know, LW is giving positive interest, (maybe not enough for you) which in a negative interest rate environment is still pretty good. My rate with LW dropped by 5% overnight and the selling fee increased from 0.5% to 5.6%! That is your experience, i have not draw money at the worst time so my figures are very much different than yours. I draw on monthly basis free of any fees. and the selling fees keep decreasing.
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Post by gravitykillz on Mar 9, 2020 17:37:28 GMT
Toilet roll is the currency of the future !
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Post by jojo on Mar 9, 2020 18:08:33 GMT
Toilet roll is the currency of the future ! Probably yes, very good point, in some supermarkets they are running out...... scary world :-)
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Post by Undecided on Mar 9, 2020 18:24:09 GMT
I don’t know what stock market you are looking at but none of the ones I have looked at have lost 25% in 2 weeks. Whilst they have gone down a lot they will come back up whereas LW will never come back to the original level and we have no idea what level they will come back to. My rate with LW dropped by 5% overnight and the selling fee increased from 0.5% to 5.6%! Ok I am sorry, my bad, FTSE went From 7700 to 5950 , that is 23 % drop , my mistake , not 25 %, some energy companies have lost 30 to 35 % in one day today, just to have an idea of how fast can risk asset can move, so i feel p2p is not a risk asset because it doesn't move with such volatility. Whilst they have gone down a lot they will come back up : I was trader in 2005 and I remember people telling the same , you should have seen their face in 2009 when we hit bottom, lots of people never came back from the collapse, and from what i know, LW is giving positive interest, (maybe not enough for you) which in a negative interest rate environment is still pretty good. My rate with LW dropped by 5% overnight and the selling fee increased from 0.5% to 5.6%! That is your experience, i have not draw money at the worst time so my figures are very much different than yours. I draw on monthly basis free of any fees. and the selling fees keep decreasing. I don't think the FTSE has been near 7700 in the last 2 weeks - perhaps you meant 2 months? The people that told you the stock market will come back up were right, it did. Would be interested to know what your Feb LW return was and what the current selling fees are if you don't mind sharing.
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macq
Member of DD Central
Posts: 1,934
Likes: 1,199
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Post by macq on Mar 9, 2020 19:00:21 GMT
Have a look at your monthly statements, you will be shocked. I have complained to the ombudsman and FCA after getting nowhere with LW. Have a look at your Share ISA statement in your retail bank and you might be shocked too. When i used to say on this forum that all the changes was relative if you compare to the interest/banking environment. Now I can add that when you have stocks markets losing 25 % in 2 weeks, the 2% difference on rates seems all relative to me. Yes the stock market is down is down but you really can't compere the Two products or we could play the same game in reverse with the gains and say LW is not making the annualised returns of many funds. What you could say -is today if i went to sell a share the price on my home screen would be what i got but not sure the same with my LW home screen
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