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Post by ruralres66 on May 9, 2020 12:56:34 GMT
It seems it's very much up to who you speak to. I have always been denied any info at all when I ask for a predicted timescale for my loans yet others get an indication. This is one of the factors ( amongst several others) causing me to RYI.
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Post by captaincodeman on May 9, 2020 13:06:17 GMT
It was a combination of falling rates and reduced coverage plus the increased risk of defaults due to the CoronaVirus and of course the fact that a big stock-market correction means there's the opportunity for substantially better returns elsewhere.
Fortunately, I had already begun reducing how much I had in RS because of the rates / coverage and felt I was at the limit of what I wanted in P2P (I saw it as a kind of diversification, more like a higher interest cash account) and then managed to withdraw the majority of my holdings before the crisis really got going.
Unfortunately, even then, you discover that the RYI doesn't really work as you might think - I was left with lots of under-10 loans from the 5-year market that now I just have to wait and hope are repaid over the next 4 years and some in "Access" (ha!) because my original strategy to wind down was to have 5-year going into 1-year and 1-year going into access because I hadn't paid enough attention to the specifics of the changes.
What will be 'fun' is if, by the time the Access RYI is processes, the balance on some of the outstanding loans dip under the 10 threshold and can't be withdrawn.
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Post by Deleted on May 9, 2020 13:08:59 GMT
I've found that Access/Plus/Max loans are repaid in full when they get below £10. The main issue for <£10 loans is in the 5-year market.
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johnt
Investing in Ratesetter, Zopa and Assetz Capital since 2013
Posts: 127
Likes: 71
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Post by johnt on May 10, 2020 7:34:31 GMT
There were two main factors involved for me. First was the health of the PF only going in one direction which I'd been tracking for a number of a months.
Then when Ratesetter decided to run a promotion whereby the more you invested, the more cashback you got, it rang alarm bells in my head and I promptly made the decision to withdraw.
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Post by ruralres66 on May 10, 2020 9:28:29 GMT
There were two main factors involved for me. First was the health of the PF only going in one direction which I'd been tracking for a number of a months. Then when Ratesetter decided to run a promotion whereby the more you invested, the more cashback you got, it rang alarm bells in my head and I promptly made the decision to withdraw. For me is goes back well before recent events.
RS Market Model manipulation
1. Monthly- that strictly wasn't..... 2. Rolling- that equally wasn't straightforward with 1-5 year loans 3. Access that was all the above and isn't access...... 4. Poor communication - anomalies- website account errors 5. Website design changes and making changes on the hoof.......and ignoring customer complaints feedback
6. last but not least, RS liaison with Neil Woodford.........
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Post by oppsididitagain on May 10, 2020 10:24:38 GMT
When they said that your funds will still be earning while not allowing ACCESS accounts to withdraw interest, or repaid capital. Had they an option to withdraw repaid capital/interest then I would not have submitted a RYI. You can withdraw any money thats repaid to you. Ive been withdrawal that everyday. You need to go into the money on the market, cancel the orders, that will send it to your holding account and you withdraw as normal. Or if you have money on your holding account you can withdraw this. Since April 1 Ive returned about 10% of my access exposure. was about 41K. now 36.5K
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chris1200
Member of DD Central
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Post by chris1200 on May 10, 2020 10:30:56 GMT
When they said that your funds will still be earning while not allowing ACCESS accounts to withdraw interest, or repaid capital. Had they an option to withdraw repaid capital/interest then I would not have submitted a RYI. You can withdraw any money thats repaid to you. Ive been withdrawal that everyday. You need to go into the money on the market, cancel the orders, that will send it to your holding account and you withdraw as normal. Or if you have money on your holding account you can withdraw this. I wonder to what extent people not realising they can (artificially) turn off reinvestment on their Access accounts is all that's funding our RYI requests...
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Post by oppsididitagain on May 10, 2020 10:43:27 GMT
I wonder to what extent people not realising they can (artificially) turn off reinvestment on their Access accounts is all that's funding our RYI requests... - Hopefully not, as RS need new funds from somewhere.
The panic in people withdrawing their money is putting a huge strain on RS. Along with not re-investing at 3%. If this user (Im sure there are more) is only withdrawing because of the reinvestment option, then thats creates a panic, more people try to withdraw, queue gets longer. A big vicious circle.
Just don't rock the boat any more than its need to be.
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chris1200
Member of DD Central
Posts: 827
Likes: 508
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Post by chris1200 on May 10, 2020 10:47:00 GMT
The panic in people withdrawing their money is putting a huge strain on RS. Along with not re-investing at 3%. If this user (Im sure there are more) is only withdrawing because of the reinvestment option, then thats creates a panic, more people try to withdraw, queue gets longer. A big vicious circle. Just don't rock the boat any more than its need to be. Quite - this was a bad example for me to pick as it's someone who (apparently) has made an RYI request because they think they can't withdraw repayments. But, based on other posts on this forum (and my supposition about the vast numbers of people who do not use this forum!), I just wonder if there are quite a few people (who haven't made RYI requests) who would turn off repayment re-investment if they knew they could. RS cleverly making this a little difficult might be helping somewhat in the liquidity battle.
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Post by freefalljunkie on May 10, 2020 11:13:11 GMT
For the last few weeks I have been withdrawing capital and interest repayments in Access by the usual method of having my interest set at 8%, then cancelling the order as it sits on the market, with the outstanding capital of each loan of course rolling over to a new monthly contract at the previous interest rate. This has enabled me to take out a significant amount each week. However from last Monday, coincidentally when the interest haircut was announced, this has abruptly stopped. Everything seems to be going straight back on the market at the going rate. The FAQ blurb on Monday suggested you can still set your own rate but as far as I can see that does not work any more. Has anyone else noticed this? Have Ratesetter changed the way the Access reinvestment works?
Edited to add, if Ratesetter had turned this off it would be bloomin' annoying but perhaps not too surprising, because as mentioned above with no new investment coming it can only be the reinvestment which is funding RYIs.
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dorset
Member of DD Central
Posts: 281
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Post by dorset on May 10, 2020 11:29:45 GMT
Having been with RS from the early days my lending peaked at about £30k in 2017 but has been running down thereafter. Posters including myself have on a number of occasions over the past couple of years talked through the risk of a liquidity run leading to a lock in as the RS model is a classic case of borrow short and lend long.
At the beginning of this year I was sitting on a rump of about £10k all at 6%+ and happy to let this run out. However getting worried about the news from China I sold out everything at the beginning of March and now have about £40 left in 20 or so very small loans. The £10k went into a one year bond at 1.5%. Pathetic rate but zero risk.
Many lenders ignored the fundamentals of risk and return. Any investment that is giving you 6% has to have high associated risk.
Afraid the interest rate cut is simply the start. Cannot see how lenders are going to avoid a capital haircut once the great depression really gets underway. IMO this will finish off P2P lending as we once knew and loved it.
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Post by scepticalinvestor on May 10, 2020 11:46:54 GMT
It was a combination of falling rates and reduced coverage plus the increased risk of defaults due to the CoronaVirus and of course the fact that a big stock-market correction means there's the opportunity for substantially better returns elsewhere. Fortunately, I had already begun reducing how much I had in RS because of the rates / coverage and felt I was at the limit of what I wanted in P2P (I saw it as a kind of diversification, more like a higher interest cash account) and then managed to withdraw the majority of my holdings before the crisis really got going. Unfortunately, even then, you discover that the RYI doesn't really work as you might think - I was left with lots of under-10 loans from the 5-year market that now I just have to wait and hope are repaid over the next 4 years and some in "Access" (ha!) because my original strategy to wind down was to have 5-year going into 1-year and 1-year going into access because I hadn't paid enough attention to the specifics of the changes. What will be 'fun' is if, by the time the Access RYI is processes, the balance on some of the outstanding loans dip under the 10 threshold and can't be withdrawn. Thanks for the edit mods.
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Post by Badly Drawn Stickman on May 10, 2020 12:25:48 GMT
I wonder to what extent people not realising they can (artificially) turn off reinvestment on their Access accounts is all that's funding our RYI requests... - Hopefully not, as RS need new funds from somewhere. The panic in people withdrawing their money is putting a huge strain on RS. Along with not re-investing at 3%. If this user (Im sure there are more) is only withdrawing because of the reinvestment option, then thats creates a panic, more people try to withdraw, queue gets longer. A big vicious circle. Just don't rock the boat any more than its need to be. As you said - artificially by setting the interest rate. Still goes on the market and orders still have to be cancelled. Yes, there is really no defence for not having a move to holding option on the access accounts. It is still on the 1 year and 5 year and I am pretty sure was on the former rolling market. Never been a problem to me personally, but is obviously sneaky at best.
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sydb
Member of DD Central
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Post by sydb on May 10, 2020 12:28:05 GMT
To answer the OP, the utter lack of regulation of the P2P sector exemplified by the FCA's authorisation of Lendy shortly followed by the exposure of planned collapse and screwing of investors, most recently by the administrators.
There is no indication the government would ever bail out a P2P platform, unlike a bank.
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Post by shanghaiscouse on May 11, 2020 9:39:13 GMT
When they said that your funds will still be earning while not allowing ACCESS accounts to withdraw interest, or repaid capital. Had they an option to withdraw repaid capital/interest then I would not have submitted a RYI. You can withdraw any money thats repaid to you. Ive been withdrawal that everyday. You need to go into the money on the market, cancel the orders, that will send it to your holding account and you withdraw as normal. Or if you have money on your holding account you can withdraw this. Since April 1 Ive returned about 10% of my access exposure. was about 41K. now 36.5K I also do this, not only with RS but also FC, but man what a hassle. this is the problem with P2P it absorbs a huge amount of time getting the money out.
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