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Post by RateSetter on Mar 13, 2020 10:08:33 GMT
Good morning everyone. We have published the following RateSetter Notice about the processing time for requests to release investments and we will keep you updated.
Thank you.
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Post by ruralres66 on Mar 13, 2020 11:27:57 GMT
"This week has been an extraordinary week for investments around the world, with reaction to coronavirus developments leading to record falls in stock markets and aggressive interest rate cuts."
Ratesetter, your communication is poor. Email contacts are erratic and infrequent.
This notice should have been sent as an email to alert lenders.
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Post by gravitykillz on Mar 13, 2020 11:29:59 GMT
Well at least the have not stopped it completely like assetz
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Post by gravitykillz on Mar 13, 2020 11:32:05 GMT
And presuming we will get extra interest as compensation for the delay
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Stonk
Stonking
Posts: 735 
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Post by Stonk on Mar 13, 2020 11:47:03 GMT
While you are waiting, your loans continue to repay as normal and accrue interest daily. So I don't think you lose out from a delay. If your release takes 7 days from when you request it, then you will be in the same position as you would have been if you had made your request 7 days later and had it fulfilled immediately.
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Post by gravitykillz on Mar 13, 2020 11:50:37 GMT
More than a week = 1 month
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Post by aidanw on Mar 13, 2020 11:51:12 GMT
Good morning everyone. We have published the following RateSetter Notice about the processing time for requests to release investments and we will keep you updated. Thank you. I appreciate the update but why haven't you emailed people that have pending RYIs with this guidance? I shouldn't need to log on every few hours to see that my account balance is unchanged....
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Post by ruralres66 on Mar 13, 2020 11:52:53 GMT
Stonk in 2018 you wrote- "RateSetter (RS)
Security of un-invested money with Ratesetter?
Nov 10, 2018 at 9:08pm
Quote
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Post by Stonk on Nov 10, 2018 at 9:08pm
Holding Account money is deposited with Barclays Bank. According to RateSetter's FAQ's, the FSCS scheme would refund you if Barclays Bank went bust. There must be some special rules to make this happen, because normally an account owned by RateSetter would not be eligible for FSCS (even if it was, it would only be £85K shared among us all), and I doubt they operate a separate named Barclays account for each of us. But I'm prepared to believe FSCS has a system in place for this kind of situation.
If RateSetter themselves went insolvent, then FSCS is irrelevant. The Holding Account money is ring-fenced as client money, and you'd get it all back. But if, say, the client money had been fraudulently misused and simply wasn't there, then you would join the queue with other creditors to try to get your cash back. With segregated bank accounts and reconciliation, such fraud should be unlikely (I was going to say impossible, but of course it's not impossible)."
Any updates/further thoughts info?
My son/husband is asking about,
a) what if Barclays are in difficulties/ going under? b) what if RS is winding down? c) What of our holding account funds with Barclays (if any) is covered by FSCA?
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Stonk
Stonking
Posts: 735
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Post by Stonk on Mar 13, 2020 11:59:39 GMT
I'm happy to give my thoughts on the above about various FSCS scenarios and so on, but this is not the thread for it. Perhaps someone could create it as a new thread?
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Post by ruralres66 on Mar 13, 2020 12:32:36 GMT
done
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Post by RateSetter on Mar 13, 2020 13:31:35 GMT
Good morning everyone. We have published the following RateSetter Notice about the processing time for requests to release investments and we will keep you updated. Thank you. I appreciate the update but why haven't you emailed people that have pending RYIs with this guidance? I shouldn't need to log on every few hours to see that my account balance is unchanged.... thank you for asking – yes, this evening we are going to send an email to customers that have a pending request to release an investment, and the email will set out the guidance in the RateSetter Notice about processing times. Investors making a new request to release their investment are also presented with a link to the RateSetter Notice.
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Post by tom1 on Mar 13, 2020 14:07:25 GMT
Good morning everyone. We have published the following RateSetter Notice about the processing time for requests to release investments and we will keep you updated. Thank you. Thank you for giving us more information about what is going on behind the scenes, it is reassuring that you are taking specific action to prioritise the release requests. Can you give us any more information about why it is going to be so long? If I look at the market data for Access right now, there appears to be £750k being offered at 3%. All of my loans are above 3% so I would expect my release to be easy to fulfill essentially immediately. What is causing the delay?
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mary
Member of DD Central
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Post by mary on Mar 13, 2020 14:18:40 GMT
Good morning everyone. We have published the following RateSetter Notice about the processing time for requests to release investments and we will keep you updated. Thank you. Thank you for giving us more information about what is going on behind the scenes, it is reassuring that you are taking specific action to prioritise the release requests. Can you give us any more information about why it is going to be so long? If I look at the market data for Access right now, there appears to be £750k being offered at 3%. All of my loans are above 3% so I would expect my release to be easy to fulfill essentially immediately. What is causing the delay? If yours was the only withdrawal request, there would be no delay. If just 1% of investments (by value) have been requested to be released, then the RYI queue is many times larger than the money on offer from Lenders sticking it out and not panicking. AC have also suspended withdrawals, which implies their cash buffer has been exhausted. RS do not hold a cash buffer to service RYI requests. I don’t think anyone would reasonably claim that these are “normal market conditions”, which is why that caveat exists in so many T&Cs.
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Stonk
Stonking
Posts: 735
Likes: 658
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Post by Stonk on Mar 13, 2020 16:29:49 GMT
On the back of my envelope:
Take a guess at how much money has been requested for release and waiting in the queue. I haven't a clue; I'll guess £50 million.
Make an estimate about how much money is normally repaid from borrowers each day and automatically reinvested. Roughly speaking, how big is the average morning wall at the Going Rate (counting Monday as 3 days)? Maybe £1 million? Take a guess at how much this will change looking forward. RS investors are generally a pretty sleepy bunch, but even the most comatose will have noticed current events and might be questioning whether to continue reinvesting. Let's say 1/4 of them will stop doing so, leaving £750K reinvested per day.
Add in your estimate of new money being added by lenders. I'm guessing quite low for this. Let's call it zero.
Assume there's no new borrowing. Then the RYI queue will be met from the reinvestments.
So if I join the RYI queue now, it will take roughly £50M divided by £750K, i.e. 67 days to release. Based on total guesses.
Your guesses will probably be at least as good as mine.
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Post by drphil on Mar 13, 2020 17:23:23 GMT
On the back of my envelope:
Take a guess at how much money has been requested for release and waiting in the queue. I haven't a clue; I'll guess £50 million.
Make an estimate about how much money is normally repaid from borrowers each day and automatically reinvested. Roughly speaking, how big is the average morning wall at the Going Rate (counting Monday as 3 days)? Maybe £1 million? Take a guess at how much this will change looking forward. RS investors are generally a pretty sleepy bunch, but even the most comatose will have noticed current events and might be questioning whether to continue reinvesting. Let's say 1/4 of them will stop doing so, leaving £750K reinvested per day.
Add in your estimate of new money being added by lenders. I'm guessing quite low for this. Let's call it zero.
Assume there's no new borrowing. Then the RYI queue will be met from the reinvestments.
So if I join the RYI queue now, it will take roughly £50M divided by £750K, i.e. 67 days to release. Based on total guesses.
Your guesses will probably be at least as good as mine.
.... and just I was beginning to feel a bit better about the AC situation 
But seriously, an excellent post but I think RS may well lock-in well before then and access to any funds will restricted for the foreseeable future.
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