09dolphin
Member of DD Central
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Post by 09dolphin on Aug 8, 2020 5:58:56 GMT
And this thread demonstrates clearly why many P2P platforms have decided to go institutional and dump retail money. Despite having to certify themselves as sophisticated investors who knew what they were investing in, the whingers are now crying foul. Did they lie when they certified, or are they just too thick to know what they clicked? Either way, its no wonder so many P2P companies are finding this source of 'dumb money' to be far more hassle than it is worth, and are switching to institutional. When I retired with a lump sum + money I inherited my IFA suggested I use 1% of my cash to invest in P2P and be an "active" investor. He suggested FS + Zopa but warned me it was possible (but unlikely) I could lose the it all. I think he thought it would be a good learning experience for me and stop me trying to second guess him in terms of his advice as I'd be otherwise occupied. Although I still have a few hundred tied up in FS I have had a good rate of interest from them which still leaves me with a very acceptable profit even if I recover nothing more. I switched from Zopa about 3 or 4 years ago to Ratesetter. Again overall I've had an more than acceptable rate of return and I've learnt so much, it's been a really enjoyable experience. I'd still regard myself as having "dumb money" and I didn't certify myself as a sophisticated investor - but then I only used 1% of my cash. The money I originally invested has increased slightly despite me having taken money out for holiday spending, a new bathroom etc. Overall I've been really happy with my experience of P2P lending. It has been far more enjoyable than watching money sat in a bank account slowly diminishing due to inflation. Just for information I have never found it necessary to contact Ratesetter so I don't think I've ever caused them any "hassle".
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09dolphin
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Post by 09dolphin on Aug 8, 2020 6:01:40 GMT
And this thread demonstrates clearly why many P2P platforms have decided to go institutional and dump retail money. Despite having to certify themselves as sophisticated investors who knew what they were investing in, the whingers are now crying foul. Did they lie when they certified, or are they just too thick to know what they clicked? Either way, its no wonder so many P2P companies are finding this source of 'dumb money' to be far more hassle than it is worth, and are switching to institutional. When I retired with a lump sum + money I inherited my IFA suggested I use 1% of my cash to invest in P2P and be an "active" investor. He suggested FS + Zopa but warned me it was possible (but unlikely) I could lose the it all. I think he thought it would be a good learning experience for me and stop me trying to second guess him in terms of his advice as I'd be otherwise occupied. Although I still have a few hundred tied up in FS I have had a good rate of interest from them which still leaves me with a very acceptable profit even if I recover nothing more. I switched from Zopa about 3 or 4 years ago to Ratesetter. Again overall I've had an more than acceptable rate of return and I've learnt so much, it's been a really enjoyable experience. I'd still regard myself as having "dumb money" and I didn't certify myself as a sophisticated investor - but then I only used 1% of my cash. The money I originally invested has increased slightly despite my having taken money out for holiday spending, a new bathroom etc. Overall I've been really happy with my experience of P2P lending. It has been far more enjoyable than watching money sat in a bank account slowly diminishing due to inflation. Just for information I have never found it necessary to contact Ratesetter so I don't think I've ever caused them any "hassle".
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Aug 8, 2020 7:38:51 GMT
You deposit money with a financial company. They lend the money to borrowers who pay interest to the company. The company deducts its expenses and profit margin and pays a lower rate of interest to you. There is a risk the level of defaults from borrowers will cause the company to fail. There is a liquidity risk that you may not be able to get your funds out when you want to.
Now, am I talking about a bank or a p2p platform?
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iRobot
Member of DD Central
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Post by iRobot on Aug 8, 2020 7:57:16 GMT
You deposit money with a financial company. They lend the money to borrowers who pay interest to the company. The company deducts its expenses and profit margin and pays a lower rate of interest to you. There is a risk the level of defaults from borrowers will cause the company to fail. There is a liquidity risk that you may not be able to get your funds out when you want to. Now, am I talking about a bank or a p2p platform? Any FSCS cover?
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chris1200
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Post by chris1200 on Aug 8, 2020 8:28:41 GMT
You deposit money with a financial company. They lend the money to borrowers who pay interest to the company. The company deducts its expenses and profit margin and pays a lower rate of interest to you. There is a risk the level of defaults from borrowers will cause the company to fail. There is a liquidity risk that you may not be able to get your funds out when you want to. Now, am I talking about a bank or a p2p platform? Any FSCS cover? Not to mention the fairly fundamental distinction between a deposit account and a p2p lending account where you literally own the loans. (Why am I engaging with the merry-go-round???)
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macq
Member of DD Central
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Post by macq on Aug 8, 2020 8:33:28 GMT
You deposit money with a financial company. They lend the money to borrowers who pay interest to the company. The company deducts its expenses and profit margin and pays a lower rate of interest to you. There is a risk the level of defaults from borrowers will cause the company to fail. There is a liquidity risk that you may not be able to get your funds out when you want to. Now, am I talking about a bank or a p2p platform? To ask a question like that you need at least Four multiple choice answers and only One should be likely
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 8, 2020 9:55:56 GMT
You deposit money with a financial company. They lend the money to borrowers who pay interest to the company. The company deducts its expenses and profit margin and pays a lower rate of interest to you. There is a risk the level of defaults from borrowers will cause the company to fail. There is a liquidity risk that you may not be able to get your funds out when you want to. Now, am I talking about a bank or a p2p platform? Depends how precise you language is. It has to be a bank as written. 1. You deposit money with a financial institution, P2P platforms arent deposit takers. 2. They lend money, a P2P platform doesnt lend money you do via the platform. 3. who pay interest to the company, borrowers pay interest to lenders, platform technically receives fees 4. The company deducts and pays a lower interest rate to you, a P2P platform receives payments direct from the borrower, not deductions from lender income (apart from a specific lender fee) 5. Level of defaults could cause the company to fail, indirectly with P2P due to loss of fee income from defaults & inability to fund new loans
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Post by ruralres66 on Aug 8, 2020 10:20:36 GMT
09dolphin said:
'Although I still have a few hundred tied up in FS I have had a good rate of interest from them which still leaves me with a very acceptable profit even if I recover nothing more. I switched from Zopa about 3 or 4 years ago to Ratesetter. Again overall I've had an more than acceptable rate of return and I've learnt so much, it's been a really enjoyable experience.
I'd still regard myself as having "dumb money" and I didn't certify myself as a sophisticated investor - but then I only used 1% of my cash.
The money I originally invested has increased slightly despite my having taken money out for holiday spending, a new bathroom etc. Overall I've been really happy with my experience of P2P lending. It has been far more enjoyable than watching money sat in a bank account slowly diminishing due to inflation.
Just for information I have never found it necessary to contact Ratesetter so I don't think I've ever caused them any "hassle".'
'I really like your post. Thank you! I too feel to be a lay participator forced to look at all alternatives due to personal circumstances and some adversity following the 2008 crash and fast approaching retirement age. Like you I signed up to P2P as an experiment and embarked on a learning curve made all the easier by access to this forum I add. I too have found it enjoyable and interesting. I hated being taken for a ride by Government/ Bank of England/ Banks and Building societies, even the mutuals. I bank with the Coop - enough said about their fiasco....The dumb money is placed with the above. Yes it has a degree of protection. But over 10 years I have earned 4 times with P2P what I would have received by conventional savings accounts. I reckon even with a hair cut on P2P I would still over the longer term be quids in. It looks like I might 'escape' relatively unscathed as most of my 6 figure sum has now been released. I have yet to lose a penny.... So thank you to mods and those that established the forum. Without this discussion and dialogue, we would all be just second guessing and in an anxiety spin- well that's how I see it! Off to enjoy my campervan.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Aug 8, 2020 11:11:53 GMT
Ratesetter chased dumb money so that's the kind of investor/saver/lender they got. Count me in too with coogaruk and many others here as someone who also has made a good return as a p2p dumbster!. Yes I have money stuck in p2p but as I have said before its not capital I rely on and in fact its now mostly earned money from over the last 13/14 years or so since I finished working in the real world. I like to think I know what I am doing in the wild west of investment - yes I said it p2p is investment its not saving and i'll wash my mouth out with carbolic soap later. But one thing I do know is I never invest in something I do not feel I understand enough to commit my spare money to. Who you calling a dumbster?
More seriously, where my attitude to risk maybe slighly differs from yours is that I will willingly hold my hand up to having in the past invested in stuff I don't fully understand and who knows may well do so again at some point in the future but always with the caveat no more than I can afford to lose. And before anyone asks: No, I don't like losing!
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Mousey
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Post by Mousey on Aug 8, 2020 12:10:10 GMT
Not sure what loan this relates to:
In the County Court at Central London Thomas More Building Royal Courts of Justice Court 90 4th Floor Monday 10 August 2020 Before District Judge ******
2:00 PM G10***** 1) RETAIL MONEY MARKET LTD T/A RATESETTER 2) SECURITY TRUSTEE SERVICES LIMTED -v- ***** - 1 HOUR COSTS AND CASE MANAGEMENT CONFERENCE VIA BT MEET ME (RESERVED)
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aju
Member of DD Central
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Post by aju on Aug 8, 2020 13:05:29 GMT
Count me in too with coogaruk and many others here as someone who also has made a good return as a p2p dumbster!. Yes I have money stuck in p2p but as I have said before its not capital I rely on and in fact its now mostly earned money from over the last 13/14 years or so since I finished working in the real world. I like to think I know what I am doing in the wild west of investment - yes I said it p2p is investment its not saving and i'll wash my mouth out with carbolic soap later. But one thing I do know is I never invest in something I do not feel I understand enough to commit my spare money to. Who you calling a dumbster?
More seriously, where my attitude to risk maybe slighly differs from yours is that I will willingly hold my hand up to having in the past invested in stuff I don't fully understand and who knows may well do so again at some point in the future but always with the caveat no more than I can afford to lose. And before anyone asks: No, I don't like losing!
If its a cap that fits then I say buy it! I never said I didn't make mistakes, how does one learn and understand things when it all goes right. I think I said I like to understand things. I've made some odd ones I've talked about my worst one - the icelandic banks using stoozed money from a cheap credit card just prior to the last finance crisis. I was very lucky in that the Uk government stepping in and pulled Kaupthing Bank out of the dodo for its uk investors. Learnt an aweful lot about things at that point not least from Mrs Aju's tongue at the time. It would been quite a good disaster for what was in effect quite a small gain at the time. I've never done that again and I thought I understood the implications at the time, boy was I wrong about that one.
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mikeb
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Post by mikeb on Aug 9, 2020 17:02:18 GMT
"Assetz offers ‘home’ for RateSetter lenders...." More like home alone and all the tricks too. i would steer clear of p2p for a while. not sure moving from one p2p to another is a wise move. if the assetz property looses some value its going to hurt them too It's ok, it's not P2P anyway -- more like FP2F ... Frying Pan To Fire. It's an interesting pitch though - queue for ages to get your money out of Ratesetter (earning reduced interest under newly imposed conditions), then pour into AC instead and get it stuck there for longer, while earning reduced interest, under newly imposed conditions. I'm sure marketing will come up with a positive way to spin that.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Aug 10, 2020 20:37:18 GMT
More like home alone and all the tricks too. i would steer clear of p2p for a while. not sure moving from one p2p to another is a wise move. if the assetz property looses some value its going to hurt them too It's ok, it's not P2P anyway -- more like FP2F ... Frying Pan To Fire. It's an interesting pitch though - queue for ages to get your money out of Ratesetter (earning reduced interest under newly imposed conditions), then pour into AC instead and get it stuck there for longer, while earning reduced interest, under newly imposed conditions. I'm sure marketing will come up with a positive way to spin that. AC imposed fees, made rules for sharing investor releases and penalised bigger investments as a consequence. Why join a platform that needs to do this. I know they need to survive etc but that is sufficient warning. Sorry AC - I'm out.
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Post by gar on Nov 19, 2020 9:20:05 GMT
You really are something else! Where do I start?
Firstly, experience doesn't automatically mean success but I guess the fact that I'm still investing thirty plus years on suggests I must have had my fair share of it in the past.
Secondly - unlike you it would seem - I did read and accept the Terms & Conditions at the point I signed up and to a large degree remain reasonably happy with them, even though as with both Z & FC before them, there have since been many developments at RS that have - putting it mildly - annoyed me, several of which I'm sure I have documented here, if you'd only care to take a look. Hence why I'm now in 'wind down' mode.
As for having my money "wrapped up" for *up to* five years (though I've already had a third of my total RS investment returned - entirely from borrower repayments - since mid-May btw) that's something else I have accepted and am comfortable with because a) I still expect to come out with a decent return in the long run and - more importantly perhaps - b) I can afford to lose if it fails to live up to my hopes/expectations. p2p has never contributed more than about 10% of my well-diversified investment portfolio.
You'll be relieved to hear (but perhaps not as much as others on here) this is the final FREE LESSON you'll ever receive from me. Whether you decide to learn anything from it or not of course is entirely up to you.
I do beg your pardon, I have no Idea what you are talking about, the original post was addressed to "beagle" only. I don't see or reference your name anywhere in the original post so why do you assume you are the subject?. I really don't for the life of me understand your protracted unjustified response. Im off now so any future volumes you care to to add to this post will be lost on me. So its farewell from me and I sincerely wish you luck with the Premium Bonds.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
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Post by beagle on Nov 19, 2020 13:40:07 GMT
You really are something else! Where do I start?
Firstly, experience doesn't automatically mean success but I guess the fact that I'm still investing thirty plus years on suggests I must have had my fair share of it in the past.
Secondly - unlike you it would seem - I did read and accept the Terms & Conditions at the point I signed up and to a large degree remain reasonably happy with them, even though as with both Z & FC before them, there have since been many developments at RS that have - putting it mildly - annoyed me, several of which I'm sure I have documented here, if you'd only care to take a look. Hence why I'm now in 'wind down' mode.
As for having my money "wrapped up" for *up to* five years (though I've already had a third of my total RS investment returned - entirely from borrower repayments - since mid-May btw) that's something else I have accepted and am comfortable with because a) I still expect to come out with a decent return in the long run and - more importantly perhaps - b) I can afford to lose if it fails to live up to my hopes/expectations. p2p has never contributed more than about 10% of my well-diversified investment portfolio.
You'll be relieved to hear (but perhaps not as much as others on here) this is the final FREE LESSON you'll ever receive from me. Whether you decide to learn anything from it or not of course is entirely up to you.
I do beg your pardon, I have no Idea what you are talking about, the original post was addressed to "beagle" only. I don't see or reference your name anywhere in the original post so why do you assume you are the subject?. I really don't for the life of me understand your protracted unjustified response. Im off now so any future volumes you care to to add to this post will be lost on me. So its farewell from me and I sincerely wish you luck with the Premium Bonds. took 4 months to psych yourself up for the reply
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