littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Feb 2, 2021 12:06:50 GMT
Time will tell, but if anyone ends up losing out by this I would think it more likely to be MB. If the loan book + PF could be sold at over par then I don't know why they would have done so. There are some real dogs left in the book following the sale of the secured ones. MB were practically a forced buyer to avoid the inevitable embarrassment due as the book ran down.
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adrian77
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Post by adrian77 on Feb 2, 2021 12:09:17 GMT
I have had a good return with RS so not complaining and I think MB have been very smart here. But I agree with the above and it is a shame we never got part of the PF which we paid for. I may well buy some MB shares as a tentative punt. Myself and others did say we thought the loanbook had been sold - just saying...
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Feb 2, 2021 12:17:29 GMT
Time will tell, but if anyone ends up losing out by this I would think it more likely to be MB. If the loan book + PF could be sold at over par then I don't know why they would have done so. There are some real dogs left in the book following the sale of the secured ones. MB were practically a forced buyer to avoid the inevitable embarrassment due as the book ran down. cost of fund 0.01% average saving account loan book yield 8% huge profit. i dont think they care about the loss here and there
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Feb 2, 2021 12:23:01 GMT
Huh? According to the linked document: "16.1. We can end our agreement with you, close or suspend your RateSetter account and stop providing any services
by giving you at least two months’ notice."they can close an account down with sufficient notice.
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macq
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Post by macq on Feb 2, 2021 12:29:47 GMT
With regards the legality of money in the PF being "retained" by RS/Metro if memory serves did the same thing not happen with L***b** when they paid back a couple of years back as i am sure they had a PF of sorts if not by name?
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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 Feb 2, 2021 12:54:42 GMT
I have had a good return with RS so not complaining and I think MB have been very smart here. But I agree with the above and it is a shame we never got part of the PF which we paid for. I may well buy some MB shares as a tentative punt. Myself and others did say we thought the loanbook had been sold - just saying... Do the borrowers get the huge amount of the provision fund they pay for back?
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Feb 2, 2021 13:28:27 GMT
I have had a good return with RS so not complaining and I think MB have been very smart here. But I agree with the above and it is a shame we never got part of the PF which we paid for. I may well buy some MB shares as a tentative punt. Myself and others did say we thought the loanbook had been sold - just saying... Do the borrowers get the huge amount of the provision fund they pay for back? interesting point THat will become pure yield
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69m
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Post by 69m on Feb 2, 2021 13:29:32 GMT
Some aspects of this deal - especially regarding the PF - might not appear to be very fair. But then P2P's general reputation for fairness isn't great, so nobody should be surprised. Whether or not it would withstand a legal challenge is another question entirely.
Nevertheless, to exit RS with all capital intact having constantly received positive interest is a fantastic outcome for lenders. We could have been facing a very different scenario if MB hadn't bought RS (platform collapse?), or RS hadn't bolstered the PF (individual capital losses?).
While the product changes over the years arguably made RS a lot less appealing, the P2P sector will be poorer for its demise.
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rit
New Member
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Post by rit on Feb 2, 2021 13:34:19 GMT
Sadly nothing they have done is illegal and covered under the T&Cs, the real issue is that you would not consider the actions of Metro Bank as ethical. They are acting as a corporate raider, but rather than getting full value for the assets of a business that was trading at below value, they are instead stripping investors of their expected future returns. All after having made the same investors cover the cost of all future investment risk.
If I was a shareholder in Metro Bank I would be congratulating them on their actions, but as I'm a user of the RateSetter platform this leaves a sour taste.
The sad thing is does anyone think that the long term future of Zopa is going to be any different once their back is fully up and running? P2P lending started as a way to get better value for investors/lenders than traditional banks and their lending departments offered. Both RateSetter and Zopa are now just the lending departments of banks.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Feb 2, 2021 13:54:39 GMT
Sadly nothing they have done is illegal and covered under the T&Cs, the real issue is that you would not consider the actions of Metro Bank as ethical. They are acting as a corporate raider, but rather than getting full value for the assets of a business that was trading at below value, they are instead stripping investors of their expected future returns. All after having made the same investors cover the cost of all future investment risk.
If I was a shareholder in Metro Bank I would be congratulating them on their actions, but as I'm a user of the RateSetter platform this leaves a sour taste.
The sad thing is does anyone think that the long term future of Zopa is going to be any different once their back is fully up and running? P2P lending started as a way to get better value for investors/lenders than traditional banks and their lending departments offered. Both RateSetter and Zopa are now just the lending departments of banks.
exactly this. business is business and some win and some lose
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Feb 2, 2021 14:08:21 GMT
If new money is invested in an ISA, as they say is allowed, in order to get a near risk free 1.5% for 2 months which loans will it be invested in? New Metro loans? No. Existing RS loans. Not risk-free either but very minimal risk I guess, given the current health of the PF.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Feb 2, 2021 14:24:04 GMT
Hindsight is a wonderful thing. I think RS did a good job in the end. You can only compare them to the competition. However, I do wonder if we didnt create a run on RS, the mass of withdrawals, the panic, people paying the withdrawal fee's, etc etc maybe RS would still be here ? Where did those mass of withdrawals go, reading the forums at the time, into a FIXED rate saving with Marcus I mean Goldman Sachs ?? I wonder what GS did with the loan of cash at 1-1.4% when Stock markets have risen by 30% since march, and now people cant put enough cash in to the stock markets.. !! If you are so upset about the deal metro got, its simple. Go and buy Metrobank shares. :-) Its a shame its gone, it fitted into a nice space the financial system didnt account for. IMHO I'm still with RS got just under 5K in the 5Yrs with 30months to run at 6.6%. I guess I will get that back in April when the book is finally closed. Good luck to everyone in the future Thinking along those lines is one of the reasons I have so far avoided Shawbrook's Fixed-Rate products after their recent purchase of the RS property loans portfolio.
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Post by madkings on Feb 2, 2021 14:24:54 GMT
mmmmmmmm Stinks - This was planned from day 1 or even before day 1 of Metro Bank purchase. NO ONE can tell me that the reduction in interest plan was to bring the funds back to over 100% to suit anyone bar Metro Bank. I probably lost over £2k in interest lost to essentially ensure Metro Bank benefits, this has not just been thought of 1 week ago this has been their masterplan from day 1...... Taking legal advise and my Solicitor has written to RS today for a formal response.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Feb 2, 2021 14:47:25 GMT
mmmmmmmm Stinks - This was planned from day 1 or even before day 1 of Metro Bank purchase. NO ONE can tell me that the reduction in interest plan was to bring the funds back to over 100% to suit anyone bar Metro Bank. I probably lost over £2k in interest lost to essentially ensure Metro Bank benefits, this has not just been thought of 1 week ago this has been their masterplan from day 1...... Taking legal advise and my Solicitor has written to RS today for a formal response. Of course it was planned. they wanted a loan system and a nice portfolio of high yielding loans. They allowed us to repay this fund up and that was it. The writing was on the wall and this is why so many left. Maybe no one can tell you what you want to hear, but at the end of the day you have not lost capital in huge pandemic. Moreover, if we had not paid into the fund we would have lost capital anyway. Maybe you have lost 2k of theoretical interest (btw this might not exist if we had not paid into the provision fund) and if Ratesetter had collapsed (it was course to) you would have lost more. All that will happen now is you will lose more money paying for solicitors. Better make sure he/she is skilled at financial law. You also might find it a stumbling block given ratesetter gave you notice. Perhaps time to accept it and be grateful you have funds and interest back albeit in an unethical, underhand corporate way. If anyone should be annoyed as ilmoro stated above - should borrowers not get a rebate - they are paying into a fund that does not exist.
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jlend
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Post by jlend on Feb 2, 2021 15:12:29 GMT
mmmmmmmm Stinks - This was planned from day 1 or even before day 1 of Metro Bank purchase. NO ONE can tell me that the reduction in interest plan was to bring the funds back to over 100% to suit anyone bar Metro Bank. I probably lost over £2k in interest lost to essentially ensure Metro Bank benefits, this has not just been thought of 1 week ago this has been their masterplan from day 1...... Taking legal advise and my Solicitor has written to RS today for a formal response. The rate cut occurred before the Metro deal, it was nothing to do with the Metro deal. The rate cut started in May. Irrespective of the Metro deal, the terms and conditions we all signed up to included a rate cut in the event of the PF being underfunded. RS had no choice but to do this irrespective of the later Metro deal. RS had to continue the rate cut until the PF was fully funded. RS didn't change the terms and conditions as part of the Metro deal. The terms and conditions we all signed up to included the possibility RS could sell loans. We all agreed to this. If you didn't like the terms, you should never have invested. We all had the option of selling out using the normal sellout function. I like you also sold out some loans, my RS fees were considerably higher than yours. I don't have a problem with that. It was my choice and I have earned a considerable amount of interest over the last 10 years since the early months of Ratesetter. I personally don't think RS have anything to apologise about when all things are considered.
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