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Post by Badly Drawn Stickman on May 4, 2020 7:00:16 GMT
Not really the news I was waiting for.
I don't like Mondays.
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tjtl
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Post by tjtl on May 4, 2020 7:05:57 GMT
Agreed- not good news at all. Probably inevitable, we are effectively giving up income to give some limited protection to capital. The obvious problem with this is that it only further undermines what little confidence there is in Ratesetter's business model- very hard to think that any of us who are queuing to get our money out of Ratesetter, or who have managed to get their money out of Ratesetter, will rush to reinvest in the future. There are too many platforms losing too much money, there will have to be consolidation, and I don't now see Ratesetter as one of the consolidators.
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Post by scepticalinvestor on May 4, 2020 7:09:48 GMT
Ugh. Still waiting for my "Access" RYI funds to come through. I was hoping the increasing number of RYI cancellations (at least as per RS) would speed up the process, this slays that hope dead.
It isn't unexpected, but 1.5% is the pits, given that you can get 1.2% in an FSCS protected easy access (the real kind) savings account.
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pip
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Post by pip on May 4, 2020 7:13:47 GMT
Surely all investors should get the same rate as all are now in the same position.
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Post by supernumerary on May 4, 2020 7:23:11 GMT
Not really the news I was waiting for. ...which may mean, it will be more difficult for Ratesetter to raise money for new loans... If this is so, then effectively, at the moment, IMHO, this could signal an effective wind down of their business... An extremely sad situation is unfolding.
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jcb208
Member of DD Central
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Post by jcb208 on May 4, 2020 7:29:11 GMT
Only money we will get back now is through repayments ,mine will go in to premium bonds and hope for good luck !!!
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pikestaff
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Post by pikestaff on May 4, 2020 7:32:05 GMT
This modest adjustment makes complete sense to me. I'm pleased that some interest continues to be paid, and hope it is affordable.
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jlend
Member of DD Central
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Post by jlend on May 4, 2020 7:35:47 GMT
This modest adjustment makes complete sense to me. I'm pleased that some interest continues to be paid, and hope it is affordable. Agreed It is what it is. Sensible to preserve capital. They were already planning the change in how the PF was reported by adding the third metric. They have talked about that in the past. The unemployment rate and fall in house prices etc assumed in the metric is a similar worse case scenario that my partner is having to plan for in the civil service. And similar to the bad case scenario recently released by lloyds/Halifax/Bank of Scotland group. So there is logic there as a planning assumption. Looking further ahead Lloyds group have assumptions of circa 30% fall in house prices over 3 years in their bad case scenario.
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ashe
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Post by ashe on May 4, 2020 7:38:28 GMT
Surely all investors should get the same rate as all are now in the same position. Bit simplistic. My behaviour in terms of withdrawing was affected by the relative terms and fees between my loans. RS would be waving a red rag to a bull if they forced the same rates on people who didn't put in withdrawal requests earlier due to having higher rates.
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Post by Badly Drawn Stickman on May 4, 2020 7:39:29 GMT
Not really the news I was waiting for. ...which may mean, it will be more difficult for Ratesetter to raise money for new loans... If this is so, then effectively, at the moment, IMHO, this could signal an effective wind down of their business... An extremely sad situation is unfolding. My rubber ball ability is starting to work now.. It is unwanted, but not unexpected news, whilst all you say is true staying in the game short term is what it is all about, Hopefully longer term they can get alternative funding for loans (various Government schemes seem likeliest).
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benaj
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Post by benaj on May 4, 2020 7:46:33 GMT
😑
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jlend
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Post by jlend on May 4, 2020 7:49:49 GMT
Surely all investors should get the same rate as all are now in the same position. Bit simplistic. My behaviour in terms of withdrawing was affected by the relative terms and fees between my loans. RS would be waving a red rag to a bull if they forced the same rates on people who didn't put in withdrawal requests earlier due to having higher rates. The way the cut is being done is exactly as described in their terms and conditions that have been in place for years. It makes sense to stick to the terms and conditions.
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09dolphin
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Post by 09dolphin on May 4, 2020 7:53:58 GMT
Will they also half their fee for RYI and contribute that to the provision fund?
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rscal
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Post by rscal on May 4, 2020 7:57:09 GMT
(Was anyone reinvesting on the platform just prior to this? I lent on the 1 year but got a lower than asked for rate due to a mix up with how the UI now works and my lack of familiarity with it. Fortunately they have shot their own fox b/c the only gave me 3 months on a swap with an sellout investor which means that's coming out 'early' and that's 'good' thing for a change.)
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jlend
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Post by jlend on May 4, 2020 7:59:53 GMT
Will they also half their fee for RYI and contribute that to the provision fund? I don't think now is the time for platforms like RS or AC to be cutting fees. They need fees to cover costs. Above all we need the platforms to survive.
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