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Post by RateSetter on Dec 16, 2020 16:53:47 GMT
Good afternoon all. We have posted a blog on our website and a RateSetter Notice in the member area regarding the property development finance portfolio and the 1 Year market, copied below in full for reference:
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Post by gricehead on Dec 16, 2020 17:02:01 GMT
*checks inbox*
Nope, nothing.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 702
Likes: 463
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Post by coogaruk on Dec 16, 2020 18:07:40 GMT
*checks inbox* Nope, nothing. My email just arrived.
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Post by capricorn on Dec 16, 2020 21:22:58 GMT
I've missed something during my years of lending. I thought P2P lending was a contract between the borrower and me the lender of the money, with the platform as the arranger of loans. Now Ratesetter tell me all my loans were theirs all along. I'd have thought some compensation for early termination of my contracts was in order.
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Post by jockstrap on Dec 17, 2020 10:42:16 GMT
*checks inbox* Nope, nothing. My email just arrived. Poor timing from RateSetter. Their email helpfully advises lenders to check their re-investment settings, but it arrived some hours after all the 1 year loans had been repaid. I hope nobody was caught out by the lack of advance notice.
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Post by diversifier on Dec 17, 2020 11:31:42 GMT
Poor timing from RateSetter. Their email helpfully advises lenders to check their re-investment settings, but it arrived some hours after all the 1 year loans had been repaid. I hope nobody was caught out by the lack of advance notice. Metro hopes and expects that lots of people *are* caught out by the lack of advance notice. I’ve just gone to the Access market rates, and suddenly there is £69m on market at market rate (from property loans held within APM). Presumably that’s going to spend the next few weeks matching to APM RYIs as fast as they can physically do it. Quite likely a lot of people won’t want it reinvested, had they known, they just didn’t know how to set the rate to prevent it. That’s probably also the real meaning behind the technical pause on the matching scheme - the elves can’t do it fast enough by hand so they’ve had to write a script. Welcome to the 21C. There’s also £28m on the 1yr market, which is going nowhere, but contractually they have to give a months notice before officially closing the market. Presumably some (small) fraction of that will also get reinvested in APM RYIs over the next month or so.
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bt
Sir Bufton Tufton, Jean Paul Sartre Zippy, Bungle, Jeffrey Archer Andre Previn and the LSO Hello
Posts: 129
Likes: 53
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Post by bt on Dec 17, 2020 13:04:37 GMT
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69m
Member of DD Central
Posts: 116
Likes: 199
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Post by 69m on Dec 17, 2020 13:56:49 GMT
I've missed something during my years of lending. I thought P2P lending was a contract between the borrower and me the lender of the money, with the platform as the arranger of loans. Now Ratesetter tell me all my loans were theirs all along. I'd have thought some compensation for early termination of my contracts was in order. RS would probably argue that the Investor Terms allow RS to do pretty much what it wants.
Section 3 (RateSetter’s role) states: 3.2 By agreeing to these Terms, you’re appointing RateSetter to act as your agent in all matters relating to the origination, negotiation, administration and management of your loans. This includes:
- [various things]
- entering into any transfer arrangements on your behalf in order to transfer the benefit of any loans (orpart thereof) to the Provision Fund, another RateSetter investor, RateSetter itself or a third party; and
- anything else RateSetter reasonably considers necessary to manage your loans, including terminating those loans.
It's P2P in theory, at least.
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Post by capricorn on Dec 17, 2020 17:10:09 GMT
I've missed something during my years of lending. I thought P2P lending was a contract between the borrower and me the lender of the money, with the platform as the arranger of loans. Now Ratesetter tell me all my loans were theirs all along. I'd have thought some compensation for early termination of my contracts was in order. RS would probably argue that the Investor Terms allow RS to do pretty much what it wants.
Section 3 (RateSetter’s role) states: 3.2 By agreeing to these Terms, you’re appointing RateSetter to act as your agent in all matters relating to the origination, negotiation, administration and management of your loans. This includes:
- [various things]
- entering into any transfer arrangements on your behalf in order to transfer the benefit of any loans (orpart thereof) to the Provision Fund, another RateSetter investor, RateSetter itself or a third party; and
- anything else RateSetter reasonably considers necessary to manage your loans, including terminating those loans.
It's P2P in theory, at least.
Thanks for your reply 69m. I think I'm one of the few who were happy to keep 1 year loans to term, having got some good rates when they were available and expecting the provision fund to do its job for the few more months they had left to run.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 702
Likes: 463
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Post by coogaruk on Dec 17, 2020 17:49:14 GMT
I've missed something during my years of lending. I thought P2P lending was a contract between the borrower and me the lender of the money, with the platform as the arranger of loans. In my view, it's the gradual casting aside of the small (consumer) investors that spelled the end of and has led to (pretty much) the demise of P2P.
Of all (the only) 3 platforms I've been involved with, Zopa (I've been in since 2006) started it and they were quickly followed by Funding Circle (2012) and more latterly RateSetter (2012).
At each point they went beyond what I felt was unreasonable/unsuitable for me, I commenced an orderly wind down.
I've made good returns from all three along the way though, so no complaints from me. It's been quite an interesting journey, if a little bumpy at times.
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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 Dec 17, 2020 21:49:31 GMT
good for them. ratesetter took care of it's people and managed to release millions back to us in capital. some will not like it, some would rather keep running with their loans. i get that totally. however, right now the greater good is handing back capital as they could and protecting people. they did both. not everyone will agree with me but i think this was a very good bit of business for ratesetter. it may well impact the remaining investors and the prov fund might buckle. however, for today, ratesetter did good.
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Post by mfaxford on Dec 18, 2020 10:57:51 GMT
good for them. ratesetter took care of it's people and managed to release millions back to us in capital. some will not like it, some would rather keep running with their loans. I'm not too worried about the loans (and some staff) moving to another company with us getting repaid early as I'd already decided to start removing most funds as they repaid. What I do find concerning is the lack of communication about this. The sale had been noticed here 2 full days before RS announced anything (this thread and the blog post) and then the email to investors arrived some hours after the funds had already been repaid.
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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 Dec 19, 2020 13:04:37 GMT
good for them. ratesetter took care of it's people and managed to release millions back to us in capital. some will not like it, some would rather keep running with their loans. I'm not too worried about the loans (and some staff) moving to another company with us getting repaid early as I'd already decided to start removing most funds as they repaid. What I do find concerning is the lack of communication about this. The sale had been noticed here 2 full days before RS announced anything (this thread and the blog post) and then the email to investors arrived some hours after the funds had already been repaid. likely following the buyers lead.
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Post by Ace on Jan 15, 2021 10:49:07 GMT
RS's 1 year market is due to close today which is just as well as there is currently a lender offer on the 1 year market of £69 at -0.5% (Yes that's minus 0.5%!). Some lenders need protecting from themselves. Almost makes one think that the industry needs to be regulated by some sort of financial conduct authority 🤔
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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 Jan 15, 2021 12:25:15 GMT
RS's 1 year market is due to close today which is just as well as there is currently a lender offer on the 1 year market of £69 at -0.5% (Yes that's minus 0.5%!). Some lenders need protecting from themselves. Almost makes one think that the industry needs to be regulated by some sort of financial conduct authority 🤔 no doubt that lender was 'sophisticated'
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