gmd78
Posts: 57
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Post by gmd78 on Aug 31, 2020 15:37:32 GMT
A cautionary tale - herein, somewhat facetiously subtitled. “In Praise of Idleness”, copyright attribution - Bertrand Russell.
In mitigation, rightly or wrongly, all the while RS was operating as it was when I made my initial investment, I saw no reason to monitor it.
The interest was building up for a rainy day and the capital sum looked secure apropos a timely withdrawal for the possible contribution to the purchase of a modestly priced additional buy-to-let, the income from which, would add to my retirement pension fund together with my - *other freehold property rentals.
* Not many, I hasten to add, I’m not a property baron, a few commercials and a few domestics, my rental income being sufficient enough for a comfortable retirement by most plebeian standards.
Nonetheless, I have a confession to make, I should have known better, monitoring should have been de-rigueur, a prerequisite. I'm a retired Gov. licensed business and domestic debt counsellor.
My former clients would be shocked at how remise I’ve been. In particular, those who held me in high regard when acting on their behalf in court repossession cases where they came away armed with a stay of proceedings and a second bite of the cherry upheld by properly administered and managed debt counselling.
In faint and light-headed praise of RS, a subsequent ray of hope. I take some degree of comfort in the knowledge that as a lender, my understanding is that I have a 1st legal charge on my borrower’s debts and /or assets. My borrowers still owe their debts directly to me and RS cannot use my borrowers’ repayments to service their own insolvency costs.
Further, RS have unsecured lending credit check skills which by all accounts surpass that of their competitors, hence the interest in acquiring RS by Metro Bank. This combined with the fact that it uniquely spreads all of the lenders' loan book risks across each and every one of the thousands of outstanding loans, provides an additional layer of protection, pro-tem.
Are all my bad debts covered by the Provision Fund? No, almost certainly not – but in event of the company winding down, my reasonable expectation given the current structure of RS, is that in the fullness of time, capital losses are unlikely to exceed 5% at the very most. Disquieting, but not a financial catastrophe.
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aju
Member of DD Central
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Post by aju on Aug 31, 2020 16:17:19 GMT
sadly, you are in good company on here it seems. I take offence to the suggestion I might be a pleb  Lets hope you are right about the capital losses though, as we get nearer to MB day with no more new loans and no more lending then it seems that the PF won't last that long. The next 6-12 months will be interesting as people lose their jobs and cannot pay there debts etc. Tricky times ahead. |
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Greenwood2
Member of DD Central
Posts: 4,376
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Post by Greenwood2 on Aug 31, 2020 16:17:36 GMT
A cautionary tale - herein, somewhat facetiously subtitled. “In Praise of Idleness”, copyright attribution - Bertrand Russell. In mitigation, rightly or wrongly, all the while RS was operating as it was when I made my initial investment, I saw no reason to monitor it.The interest was building up for a rainy day and the capital sum looked secure apropos a timely withdrawal for the possible contribution to the purchase of a modestly priced additional buy-to-let, the income from which, would add to my retirement pension fund together with my - *other freehold property rentals. * Not many, I hasten to add, I’m not a property baron, a few commercials and a few domestics, my rental income being sufficient enough for a comfortable retirement by most plebeian standards. Nonetheless, I have a confession to make, I should have known better, monitoring should have been de-rigueur, a prerequisite. I'm a retired Gov. licensed business and domestic debt counsellor. My former clients would be shocked at how remise I’ve been. In particular, those who held me in high regard when acting on their behalf in court repossession cases where they came away armed with a stay of proceedings and a second bite of the cherry upheld by properly administered and managed debt counselling. In faint and light-headed praise of RS, a subsequent ray of hope. I take some degree of comfort in the knowledge that as a lender, my understanding is that I have a 1st legal charge on my borrower’s debts and /or assets. My borrowers still owe their debts directly to me and RS cannot use my borrowers’ repayments to service their own insolvency costs. Further, RS have unsecured lending credit check skills which by all accounts surpass that of their competitors, hence the interest in acquiring RS by Metro Bank. This combined with the fact that it uniquely spreads all of the lenders' loan book risks across each and every one of the thousands of outstanding loans, provides an additional layer of protection, pro-tem. Are all my bad debts covered by the Provision Fund? No, almost certainly not – but in event of the company winding down, my reasonable expectation given the current structure of RS, is that in the fullness of time, capital losses are unlikely to exceed 5% at the very most. Disquieting, but not a financial catastrophe. [First Bold] You and a large number of other lenders many or whom are still probably totally in the dark about recent events. [Second Bold] If you want to really scare yourself read the Collateral and Lendy threads, that run the gamut from hope and confidence (when they were first in trouble) to disbelieve and despair later when lenders found out what was really going on, particularly enjoy the roll of the FCA, the missing funds, the costs of administration and where the fees are being taken from. I think you are right about RS (I'm not expecting huge losses, but I am taking out what I can) and it does look like an orderly wind down will happen, but hold onto your hat it could be a bumpy ride.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 706
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Post by coogaruk on Aug 31, 2020 17:47:33 GMT
If RS are going to have an orderly wind down then why are they taking on new borrowers? Because the Metro Bank deal hasn't completed yet?
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gmd78
Posts: 57
Likes: 36
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Post by gmd78 on Aug 31, 2020 18:04:32 GMT
sadly, your in good company on here it seems. I take offence to the suggestion I might be pleb though Lets hope you are right about the capital losses though, as we get nearer to MB day and no more new loans and no more lending then it seems that the PF won;t last that long. The next 6-12 months will be interesting as peopel lose their jobs and cannot pay there debts etc. Tricky times ahead.
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gmd78
Posts: 57
Likes: 36
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Post by gmd78 on Aug 31, 2020 18:07:00 GMT
I'm happy to join you in the upper ranks....  |
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aju
Member of DD Central
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Post by aju on Aug 31, 2020 18:12:08 GMT
I'm happy to join you in the upper ranks.... I think my membership ran out on that one. Thanks for copying my bad spelling and english comprehension - I fixed it after Mrs aju called me away to take sustenance and I noticed there were a few errors and then you went and copied my cwappy typing skills for all to see. Mind you at least I know how to add text to a copied post, so I guess i'm one up from a pleb after all  You do know when you quote someone you are 'sposed' to put your comments below the quote --- 
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gmd78
Posts: 57
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Post by gmd78 on Aug 31, 2020 18:12:58 GMT
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gmd78
Posts: 57
Likes: 36
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Post by gmd78 on Aug 31, 2020 18:27:10 GMT
I'm happy to join you in the upper ranks.... I think my membership ran out on that one. Thanks for copying my bad spelling and english comprehension - I fixed it after Mrs aju called me away to take sustenance and I noticed there were a few errors and then you went and copied my cwappy typing skills for all to see. Mind you at least I know how to add text to a copied post, so I guess i'm one up from a pleb after all You do know when you quote someone you are 'sposed' to put your comments below the quote --- Thanks for that info' does this pass muster?... ..... My bad, apologies, I didn't notice any grammatical errors though - one scotch down, two to go.
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ceejay
Posts: 975
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Post by ceejay on Aug 31, 2020 18:27:32 GMT
If RS are going to have an orderly wind down then why are they taking on new borrowers? Because they have contractual agreements to keep lending ... it may or may not be their intention, post-Metro, to switch the source of funds from retail (us) to Metro, but either way if they want to carry on trading they probably have to keep some new loans rolling out.
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gmd78
Posts: 57
Likes: 36
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Post by gmd78 on Aug 31, 2020 18:47:58 GMT
[First Bold] You and a large number of other lenders many or whom are still probably totally in the dark about recent events. [Second Bold] If you want to really scare yourself read the Collateral and Lendy threads, that run the gamut from hope and confidence (when they were first in trouble) to disbelieve and despair later when lenders found out what was really going on, particularly enjoy the roll of the FCA, the missing funds, the costs of administration and where the fees are being taken from. I think you are right about RS (I'm not expecting huge losses, but I am taking out what I can) and it does look like an orderly wind down will happen, but hold onto your hat it could be a bumpy ride. A bumpy ride : agreed - and I'll hold on to my hat as long as I don't lose my shirt...
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