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Post by davee39 on Aug 22, 2020 16:13:45 GMT
I escaped from RS a few weeks ago ( 5yr RYI). I can see only one scenario when the takeover completes.
All lending to be funded by Metro Bank
The current P2P Loan Book to be frozen and Ring Fenced along with the PF.
RYI to stop completely.
All loans to be redeemed as they repay.
Some loan packages might be securitised allower faster repayment.
I cannot predict how the pf will perform. Much depends on the economy and the depth of the recession. I do think it unlikely that full interest will resume in December
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chris1200
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Post by chris1200 on Aug 22, 2020 16:31:39 GMT
I escaped from RS a few weeks ago ( 5yr RYI). I can see only one scenario when the takeover completes. All lending to be funded by Metro Bank The current P2P Loan Book to be frozen and Ring Fenced along with the PF. RYI to stop completely. All loans to be redeemed as they repay. (See here for context of this discussion, if you haven't already) Is there any particular reason you think it's so clear that RYIs will stop completely?
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Post by davee39 on Aug 22, 2020 17:13:13 GMT
The RYI's are from people re-investing in the accounts. If all re-investment is stopped, because the loan book is to wind down, then this funding will stop and all repayments will go to holding. A trickle of reinvestment only drags out the life of the diminishing loanbook. Metro have already indicated they will use their own funding for future loans.
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chris1200
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Post by chris1200 on Aug 22, 2020 17:42:12 GMT
The RYI's are from people re-investing in the accounts. If all re-investment is stopped, because the loan book is to wind down, then this funding will stop and all repayments will go to holding. A trickle of reinvestment only drags out the life of the diminishing loanbook. Metro have already indicated they will use their own funding for future loans. Yup, got that - so I guess I'm asking, any particular reason you think reinvestment and RYIs will completely stop? If you see my posts on the other thread, the RS wind-down plan does not suggest this would be the case. We don't know if they'll follow it or not, but I definitely don't think it's conclusive that this functionality will be shut down and, given that all such reinvestment would go to RYIs (as you say, no new p2p lending), even a 'trickle' would result in decent levels of RYI processing compared to right now (in A/P/M).
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beagle
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Post by beagle on Aug 22, 2020 17:49:57 GMT
what do you expect them to say? they can't say anything until completion and until such a time all remains as is. loans written, money out etc What makes you think they can't say anything? As I specifically said in the post you quoted, I agree they're likely to be coy - but it's a slightly odd attitude to suggest there's no point in at least trying...?  I think try all you like but they will likely be unable to share anything as it is all speculation therefore the question you ask will get a template reply.
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chris1200
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Post by chris1200 on Aug 22, 2020 17:51:06 GMT
What makes you think they can't say anything? As I specifically said in the post you quoted, I agree they're likely to be coy - but it's a slightly odd attitude to suggest there's no point in at least trying...? I think try all you like but they will likely be unable to share anything as it is all speculation therefore the question you ask will get a template reply. At this point it's highly unlikely to be speculation - they will have a plan. Whether they let us in on that plan yet is another matter. As I've already said twice, I agree they'll be coy - but it's worth trying.
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beagle
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Post by beagle on Aug 22, 2020 17:59:33 GMT
I think try all you like but they will likely be unable to share anything as it is all speculation therefore the question you ask will get a template reply. At this point it's highly unlikely to be speculation - they will have a plan. Whether they let us in on that plan yet is another matter. As I've already said twice, I agree they'll be coy - but it's worth trying. They will but a customer service agent will not have that plan to hand pre FCA sign off. The plan will be 'need to know' basis
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chris1200
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Post by chris1200 on Aug 22, 2020 18:09:15 GMT
At this point it's highly unlikely to be speculation - they will have a plan. Whether they let us in on that plan yet is another matter. As I've already said twice, I agree they'll be coy - but it's worth trying. They will but a customer service agent will not have that plan to hand pre FCA sign off. The plan will be 'need to know' basis I mean... you don’t actually know that. You’re just guessing that’s the case but saying “will” anyway. Regardless, I’ll get back with any answers I receive to those who are actually interested. Anyone else can safely ignore :-)
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Greenwood2
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Post by Greenwood2 on Aug 22, 2020 20:29:23 GMT
They will but a customer service agent will not have that plan to hand pre FCA sign off. The plan will be 'need to know' basis I mean... you don’t actually know that. You’re just guessing that’s the case but saying “will” anyway. Regardless, I’ll get back with any answers I receive to those who are actually interested. Anyone else can safely ignore :-) I assume customer services will have a scripted reply to queries which will likely be based on the RS notice to lenders (which was extremely coy). Not expecting much but I hope you get something more that you can share. 
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wuzimu
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Post by wuzimu on Aug 22, 2020 21:18:27 GMT
I am writing a letter for RS and FCA, which I will share here.
I don't expect RS or FCA to engage with me, but I want RS and FCA to be aware of my reasonable concerns as an Access lender.
In particular FCA are in the position to require certain safeguards to be put in place when mergers and takeovers occur in the regulated space. I want FCA to prevent trapped Access lenders being abused.
I can say given my understanding of FCA performance with Lendy that FCA are well meaning but often lack the smarts to understand where consumer detriment may occur.
So I'm going to join the dots.
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Post by freefalljunkie on Aug 23, 2020 8:27:43 GMT
I think it is a good idea to seek some further information from RS and the FCA. RS have a track record of giving out half truths or downright misleading information (witness the '9 out of 10 lenders continue to invest' bollocks they trotted out for months) and there has been almost no detail so far about what will happen after the Metro Bank deal goes through. The deal has to be better than the inevitable alternative of RS going bust, but I'd like some reassurance that the FCA is engaged in ensuring lenders don't get shafted.
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beagle
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Post by beagle on Aug 23, 2020 8:48:00 GMT
I think it is a good idea to seek some further information from RS and the FCA. RS have a track record of giving out half truths or downright misleading information (witness the '9 out of 10 lenders continue to invest' bollocks they trotted out for months) and there has been almost no detail so far about what will happen after the Metro Bank deal goes through. The deal has to be better than the inevitable alternative of RS going bust, but I'd like some reassurance that the FCA is engaged in ensuring lenders don't get shafted. have you proof of that? if they have a track record why trust them with your money
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beagle
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Post by beagle on Aug 23, 2020 8:48:48 GMT
I mean... you don’t actually know that. You’re just guessing that’s the case but saying “will” anyway. Regardless, I’ll get back with any answers I receive to those who are actually interested. Anyone else can safely ignore :-) I assume customer services will have a scripted reply to queries which will likely be based on the RS notice to lenders (which was extremely coy). Not expecting much but I hope you get something more that you can share. agree , it will a templated PR style reply. not more.
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Post by freefalljunkie on Aug 23, 2020 9:38:37 GMT
I think it is a good idea to seek some further information from RS and the FCA. RS have a track record of giving out half truths or downright misleading information (witness the '9 out of 10 lenders continue to invest' bollocks they trotted out for months) and there has been almost no detail so far about what will happen after the Metro Bank deal goes through. The deal has to be better than the inevitable alternative of RS going bust, but I'd like some reassurance that the FCA is engaged in ensuring lenders don't get shafted. have you proof of that? if they have a track record why trust them with your money Yes. You only have to do some simple arithmetic on the size of the RYI queue and the amounts released so far to see that the 9 out of 10 claim was indeed downright misleading. It was clearly intended to give the impression that 9 out of 10 lenders were continuing to invest after mid March as if it was business as usual, when if fact many thousands were stuck in the RYI queue with no option but to stay invested.
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Post by Badly Drawn Stickman on Aug 23, 2020 9:55:05 GMT
have you proof of that? if they have a track record why trust them with your money Yes. You only have to do some simple arithmetic on the size of the RYI queue and the amounts released so far to see that the 9 out of 10 claim was indeed downright misleading. It was clearly intended to give the impression that 9 out of 10 lenders were continuing to invest after mid March as if it was business as usual, when if fact many thousands were stuck in the RYI queue with no option but to stay invested. Perversely simple arithmetic would suggest it is unproven. Something has to explain the fact that RYIs are continuing weekly, the only conclusion has to be a given number of people are reinvesting. It would be reasonable to question the percentage but not the reality.
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