benaj
Member of DD Central
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Post by benaj on Jun 22, 2020 19:37:20 GMT
Just curious if anyone knows - I did try to get a loan but despite being very capable of paying a loan down if I was stupid enough to borrow in my circumstances (I am fortunate enough to be able to afford most of the loans available without borrowing) and as I expected it rejected me even on the simplest of cases. (Probably as a result of simple non invasive credit checks that should show I already have a lot of credit cards I never actually use except to gain from them and always pay off as soon as I use them) RS could turn down a application for various reasons. I like curiosity. "My friend" of "no fixed" address applied a rate setter loan, as expected, rejected & not a single email received. I won't be surprised if she has almost 0 score on Equilfax. But, RS referred "her" to Freedom Finance as a "Credit Broker".
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Greenwood2
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Post by Greenwood2 on Jun 22, 2020 20:28:18 GMT
RS has financial difficulties as it is not profitable and depends on fresh capital injections. Once the directors new the existing shareholders were not going to make any more capital injections then they had to stop creating new liabilities or else expose themselves to charges of trading whilst insolvent. Hence they closed it to new investors as a precautionary measure, and have been trying to raise more capital or sell the entire business. I don't think a bank would buy it (as it would have to buy the individual loans from the lenders which is way too complicated), maybe a vulture fund would at a firesale price. The other option is it goes zombie and winds down over the life of the loans, which I consider most likely. To me this is a bit over the top. At the minute RS are doing what they said they would in the case of the PF not having sufficient funds. Unfortunate, but in the current (Covid) circumstances not surprising, lets not bury them because of that. We will have to wait and see if any buy out happens, or they can recover post Covid.
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aju
Member of DD Central
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Post by aju on Jun 23, 2020 9:00:13 GMT
Just curious if anyone knows - I did try to get a loan but despite being very capable of paying a loan down if I was stupid enough to borrow in my circumstances (I am fortunate enough to be able to afford most of the loans available without borrowing) and as I expected it rejected me even on the simplest of cases. (Probably as a result of simple non invasive credit checks that should show I already have a lot of credit cards I never actually use except to gain from them and always pay off as soon as I use them) RS could turn down a application for various reasons. I like curiosity. "My friend" of "no fixed" address applied a rate setter loan, as expected, rejected & not a single email received. I won't be surprised if she has almost 0 score on Equilfax. But, RS referred "her" to Freedom Finance as a "Credit Broker". Yes, although I failed (I didn't really expect to pass ) I too was offered the Freedom Finance route. I was sort of expecting to get stopped before I actually even made it to credit checked (Albeit non invasive ones at that) if RS were not accepting loan requests. I did not bother progressing to FF as I had no intention of getting a loan just curiosity got the better of me.
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Post by honda2ner on Jun 23, 2020 13:31:54 GMT
RS has financial difficulties as it is not profitable and depends on fresh capital injections. Once the directors new the existing shareholders were not going to make any more capital injections then they had to stop creating new liabilities or else expose themselves to charges of trading whilst insolvent. Hence they closed it to new investors as a precautionary measure, and have been trying to raise more capital or sell the entire business. I don't think a bank would buy it (as it would have to buy the individual loans from the lenders which is way too complicated), maybe a vulture fund would at a firesale price. The other option is it goes zombie and winds down over the life of the loans, which I consider most likely. To me this is a bit over the top. At the minute RS are doing what they said they would in the case of the PF not having sufficient funds. Unfortunate, but in the current (Covid) circumstances not surprising, lets not bury them because of that. We will have to wait and see if any buy out happens, or they can recover post Covid. I think it's spot on. Should RS "recover" isn't meaningful. RS has never made a profit so the only thing they can hope to recover to is more losses, that isn't going to work hence the ever increasing desperation to sell its UI to someone else as that's the only thing worth anything. I expect RS shareholders to be wiped out (rightly so, they took a punt and it didn't work out, thats life) and am just hoping RS can either hobble on long enough for investors to get their money back or find a buyer for that UI. I'm sure lots of investors want RS to carry on (me included -anything that beats the paltry bank interest is good) but look at this from their point of view, why carry on losing money? Would anyone really throw more money away like that, if the sale(s) fall through RS is going to want to close down and there is nothing investors or anyone else can do about it. Wind down is not a happy place but it does look fairly likely IMO.
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benaj
Member of DD Central
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Post by benaj on Jun 23, 2020 14:43:12 GMT
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Jun 23, 2020 16:15:17 GMT
lets see the ratios show. however, that is good news. what one must factor is the recession is on pause until the schemes stop, Christmas spending will be helpful but we need to get there first.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Jun 23, 2020 17:41:57 GMT
Wind down is not a happy place but it does look fairly likely IMO. Wind down suits me just fine, tyvm. (Caveat: As long as there's no further adverse affect on my portfolio)
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Jun 26, 2020 9:26:35 GMT
Wind down is not a happy place but it does look fairly likely IMO. Wind down suits me just fine, tyvm. (Caveat: As long as there's no further adverse affect on my portfolio) haha aren't you a barrel of laughs
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adrian77
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Post by adrian77 on Jun 26, 2020 16:17:38 GMT
I left a review last week and they replied to it - clearly a generic pasted reply and treating me as if an idiot but a reply nonetheless
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