nick
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Post by nick on Dec 6, 2019 10:23:57 GMT
The wind down of the platform isn't a surprise and has been long in coming given the very limited number of new loans over the past year. I have always held the platform in high regard because of their high level of investor engagement and their approached epitomised by today's announcement of an orderly wind down of the business. I only wish all platforms were run in such a transparent and responsible way. Whilst the platform has ultimately failed, the conduct of the Things is such that their reputation remains intact. MoneyThing - good luck on future endeavors! Obviously the P2P landscape has drastically changed over the past two years. The nature of the business is such that only those platforms that can scale will remain viable in the long term - it is a volume game. The distortion created by exceptional low interest rates has flooded the markets with cheap money looking for a home. It is increasingly evident that risk is being mis-priced in many debt markets due to excessive money supply. When the tide eventually turns, there will be a lot of pain........
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nyneil
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Post by nyneil on Dec 6, 2019 10:25:48 GMT
Sorry to see you go, MoneyThing. Good luck with the 'orderly' wind down! I just hope the practicalities don't overwhelm your good intentions.
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Post by brianac on Dec 6, 2019 10:38:30 GMT
I wonder how this leaves people like myself who have withdrawn a substantial amount of funds from the flexible isa as there have been no new loans. Now there appears to be no way of paying the money back and getting it transferred out to retain the tax free status. SophieThing any advice on this please, I too am in similar position, planned to pay funds back in at end of march to "roll over", also, transferring ifisa "dribs and drabs" is gonna get expensive, is there anything that can be done here? automatic transfer of funds as available to a nominated platform as /when available would be useful, but suspect ISA rules wouldn't allow. Brian (this is all previous years funds BTW)
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rogedavi
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Post by rogedavi on Dec 6, 2019 10:42:15 GMT
The front page is going to need a bit of re-arranging
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Post by brianac on Dec 6, 2019 10:48:01 GMT
I wonder how this leaves people like myself who have withdrawn a substantial amount of funds from the flexible isa as there have been no new loans. Now there appears to be no way of paying the money back and getting it transferred out to retain the tax free status. If you remove cash from a flexible ISA, you can simply fund a new ISA, of a different type, immediately, up to the amount you withdrew. Really? Not aware of that, please clarify. Brian
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jo
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Post by jo on Dec 6, 2019 10:50:46 GMT
Wish them (us!) luck. Looks to me like there's now a fairly clear template emerging for platform risk: unwillingness/refusal to recognise defaults early enough. As time passes, costs of enforcement compound, value of security dwindles and unless you have thousands of borrowers servicing loans normally, cash flow catches-up in the end. Following Col (which was different circumstances, as yet not fully clear), I established an internal portfolio classification for the platforms I consider to be in 'Intensive Care'. I added four platforms to the portfolio for immediate withdrawal as cash became available. Three have dropped.
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nick
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Post by nick on Dec 6, 2019 10:58:25 GMT
I wonder how this leaves people like myself who have withdrawn a substantial amount of funds from the flexible isa as there have been no new loans. Now there appears to be no way of paying the money back and getting it transferred out to retain the tax free status. If you remove cash from a flexible ISA, you can simply fund a new ISA, of a different type, immediately, up to the amount you withdrew. I believe the rules over flexible ISAs/IFISAs are more restrictive. A key rule is that you must replace withdrawn money in the same ISA/IFISA account you took it out from, with the exception that if a full withdrawal results in the automatic closure of your account you can open a second ISA/IFISA you can put money into (but you can only do this once per tax year). The issue with Moneything is that unless your IFISA is all sitting as cash, you will be unable to perform a "full" withdrawal that results in closure of the account so will be unable to simply transfer a partial amount to a new ISA.
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Post by brettb on Dec 6, 2019 11:05:03 GMT
I could see this coming. I stopped lending there a couple of years ago and thankfully my defaulted loans have all been financed with interest from prior loans.
Fintech is dead. How long before the Challenger Banks follow?
All the quantitative easing in the world can't pursuade people to borrow. Maybe at some point in the future RateSetter will charge us to lend our money out.
Still, I have good memories of the MT platform. I was living in Spain at the peak of my investing there and had to keep setting my alarm to GMT+1 to remind me to get in on the new loans.
Today HL sent me an email about the dangers of CRE fund liquidity. It would seem that another credit crisis is looming...
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withnell
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Post by withnell on Dec 6, 2019 11:08:20 GMT
I wonder how this leaves people like myself who have withdrawn a substantial amount of funds from the flexible isa as there have been no new loans. Now there appears to be no way of paying the money back and getting it transferred out to retain the tax free status. If you remove cash from a flexible ISA, you can simply fund a new ISA, of a different type, immediately, up to the amount you withdrew. Incorrect - you are allowed to subscribe to one ISA of each type in a tax year The "Flexible" bit allows you to withdrawal and redeposit in the same year (previously "outs" didn't offset "ins") but doesn't relax the one a year rule
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pom
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Post by pom on Dec 6, 2019 11:21:45 GMT
If you remove cash from a flexible ISA, you can simply fund a new ISA, of a different type, immediately, up to the amount you withdrew. Incorrect - you are allowed to subscribe to one ISA of each type in a tax year The "Flexible" bit allows you to withdrawal and redeposit in the same year (previously "outs" didn't offset "ins") but doesn't relax the one a year rule Depends really if its current/past years cash. If it's past years cash then obviously it has to go back where it came from. If it's current years AND you remove ALL of it then its effectively as if you never subscribed in the first place....tho to be on the safe side it might be better to stick it in a different type of ISA. If you only withdraw part of it then it'd def have to go into another type
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sj
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Post by sj on Dec 6, 2019 11:23:17 GMT
This orderly winding down sounds like a convenient way to just sweep all those pesky defaults under the carpet. I expect to see little or no progress to be made on certain defaults now. We've been properly screwed over some of them too (valuations, leasehold/freehold, lack of even the most basic financing checks on assets). Who is to be held accountable at the end of the day?!
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upperdeane
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Post by upperdeane on Dec 6, 2019 11:35:43 GMT
I've sent en email to MT re ISA transfer out fee (I believe £50 per transfer) and asked them if the fee will be waived now we are in wind-down and our funds may be coming in multiple payments as loans repay and defaults are recovered. It could be very costly in transfer fees for us to gradually transfer all our ISA money out. Ill let the forum know when i get a reply.
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Post by rollercoaster on Dec 6, 2019 11:40:01 GMT
Will this see a harder line on defaults then? Calling in security? Forced sales and crystallized losses?
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blender
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Post by blender on Dec 6, 2019 11:43:01 GMT
I'm not a lender but would like to offer my commiserations to MoneyThing, and respect for the intention to manage an orderly wind down. Good to see some integrity on display.
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nyneil
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Post by nyneil on Dec 6, 2019 11:59:57 GMT
My cash balance was transferred into my bank account within 1 hour of requesting it, this morning. Thank you MoneyThing, very efficient.
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