blender
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Post by blender on Sept 22, 2022 18:50:14 GMT
I note that the announcement also says the Access accounts queue has gone. This must raise the possibility of withdrawals being stopped due to non normal market conditions. Nope. The market conditions are returning to normal; the rates on the Access accounts are not.
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ton27
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Post by ton27 on Sept 22, 2022 19:31:32 GMT
Whilst other companies have gone to the wall AC continues to thrive. I personally think they are arguably the most disingenuous bunch of the lot. The way they have left investors high and dry with dodgy valuations, reinvention of new accounts to get round payments from the under funded provision fund. I wouldn’t invest a penny with this shower. If your new to them beware, thousands thought they were a well managed company when they invested in GBBA 1 then 2. Distributions from liquidated companies, rather than enhanced with payments from the support fund were merely diluted as AC milk each investment with additional fees which were largely the result of its own failings. I continue to invest with AC, but have reduced my funds by 75% largely due to the drop in interest paid and the higher LTVs. I agree with davefoz that they actively "milk" every possible loan. As a shareholder this is OK but is cynical from a lender perspective as every £ AC extracts from the borrower weakens/prejudices the position of the lenders. On some recent low interest loans, AC is taking nearly the same as lenders but with no risk. Their monitoring is abysmal. Enough of a rant.
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Post by df on Sept 22, 2022 20:06:29 GMT
Just received an email.
Interest rate increase for the access accounts & the queue for Investors to enter the Access Accounts has been eliminated.
Steve
Browser copy of the email
graphic blown up
May be it's just me, but I didn't like the last column of this advert. Displaying 9.8% figure can be misleading. The frame and different colour for the real rate helps, but I still think that the advert would be more transparent if they excluded the last column. As for the increase, it is good to see that AC recognised that they are about to face a very strong competition from FSCS protected savings accounts. However, the new rates are still too low and it is difficult to see how they are going to maintain a sufficient PF for AA's with the growing amount of long term 5%-ers. Currently, my highest paying FSCS instant access account is 2.1% and I expect it to rise imminently. At current climate, 3.9% for unprotected IA is not good enough for me. Neither are rates for notice accounts - in 90 days time we might see a very narrow gap and I fear that the AA's liquidity will stall again...
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Post by df on Sept 22, 2022 21:03:48 GMT
Whilst other companies have gone to the wall AC continues to thrive. I personally think they are arguably the most disingenuous bunch of the lot. The way they have left investors high and dry with dodgy valuations, reinvention of new accounts to get round payments from the under funded provision fund. I wouldn’t invest a penny with this shower. If your new to them beware, thousands thought they were a well managed company when they invested in GBBA 1 then 2. Distributions from liquidated companies, rather than enhanced with payments from the support fund were merely diluted as AC milk each investment with additional fees which were largely the result of its own failings. I continue to invest with AC, but have reduced my funds by 75% largely due to the drop in interest paid and the higher LTVs. I agree with davefoz that they actively "milk" every possible loan. As a shareholder this is OK but is cynical from a lender perspective as every £ AC extracts from the borrower weakens/prejudices the position of the lenders. On some recent low interest loans, AC is taking nearly the same as lenders but with no risk. Their monitoring is abysmal. Enough of a rant. The same here, 75% reduction since lockdown. My reduction was largely due to compulsory AA's repayments. Also Green&Great accounts payouts I've withdrawn (I'm particularly pleased with I** outcome). Apart from selling a small amount of higher risk loans when Covid changed "market conditions", my 75% reduction was very organic - I didn't do any radical moves, just followed the flow and tried to be reasonably diversified in MLA
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pikestaff
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Post by pikestaff on Sept 23, 2022 9:11:34 GMT
Just received an email.
Interest rate increase for the access accounts & the queue for Investors to enter the Access Accounts has been eliminated.
Steve
I would imagine that the elimination of the queue has been driven to a significant extent by a drop in demand.
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Post by davefoz on Sept 23, 2022 13:01:13 GMT
Browser copy of the email
graphic blown up
May be it's just me, but I didn't like the last column of this advert. Displaying 9.8% figure can be misleading. The frame and different colour for the real rate helps, but I still think that the advert would be more transparent if they excluded the last column. As for the increase, it is good to see that AC recognised that they are about to face a very strong competition from FSCS protected savings accounts. However, the new rates are still too low and it is difficult to see how they are going to maintain a sufficient PF for AA's with the growing amount of long term 5%-ers. Currently, my highest paying FSCS instant access account is 2.1% and I expect it to rise imminently. At current climate, 3.9% for unprotected IA is not good enough for me. Neither are rates for notice accounts - in 90 days time we might see a very narrow gap and I fear that the AA's liquidity will stall again... Go to Loanpad never lost a penny of investors monies…. Slightly better interest rates. Miles better than this morally corrupt bunch
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Post by df on Sept 23, 2022 16:03:39 GMT
May be it's just me, but I didn't like the last column of this advert. Displaying 9.8% figure can be misleading. The frame and different colour for the real rate helps, but I still think that the advert would be more transparent if they excluded the last column. As for the increase, it is good to see that AC recognised that they are about to face a very strong competition from FSCS protected savings accounts. However, the new rates are still too low and it is difficult to see how they are going to maintain a sufficient PF for AA's with the growing amount of long term 5%-ers. Currently, my highest paying FSCS instant access account is 2.1% and I expect it to rise imminently. At current climate, 3.9% for unprotected IA is not good enough for me. Neither are rates for notice accounts - in 90 days time we might see a very narrow gap and I fear that the AA's liquidity will stall again... Go to Loanpad never lost a penny of investors monies…. Slightly better interest rates. Miles better than this morally corrupt bunch Loanpad has been my main p2p platform since April 2021. I'm now withdrawing from LP because the rate is too low.
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agent69
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Post by agent69 on Sept 23, 2022 16:44:21 GMT
Go to Loanpad never lost a penny of investors monies…. Slightly better interest rates. Miles better than this morally corrupt bunch Loanpad has been my main p2p platform since April 2021. I'm now withdrawing from LP because the rate is too low. I closed my LP account yesterday, and it was refreshingly easy.
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iRobot
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Post by iRobot on Sept 23, 2022 17:16:07 GMT
How long will the percentage increase (in the percentage increase) gimmick last I wonder? About as long as the 30-day account has left as a product AC will continue to offer? Seems to me that the narrowing of the interest gap to the 'Quick' account and the widening of the same gap to the '90-Day' account is designed to make the '30-Day' a less desirable product. If utilisation of the '30-Day' falls, AC could declare it isn't wanted / needed so can drop it. Of course, they could just drop it anyway, but this way there is at least a chain of events that can be used to support the decision. Next step would be to offer a 180- or 365-Day account which would offer a higher rate of interest and be the 'answer' to observations that, out in the real world, risk-adjusted rates are improving and getting more and more attractive all the time. Whilst I'm at it, here are tonight's winning numbers...
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iRobot
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Post by iRobot on Sept 23, 2022 17:22:24 GMT
I continue to invest with AC, but have reduced my funds by 75% largely due to the drop in interest paid and the higher LTVs. I agree with davefoz that they actively "milk" every possible loan. As a shareholder this is OK but is cynical from a lender perspective as every £ AC extracts from the borrower weakens/prejudices the position of the lenders. On some recent low interest loans, AC is taking nearly the same as lenders but with no risk. Their monitoring is abysmal.Enough of a rant. That's an interesting observation! One of the positives I took used to take from AC was that, comparatively speaking (and, OK, it was a low bar!), AC's monitoring was superior to that of the majority of other operators in the P2P space. Edit: for clarity, I'm no longer actively invested with AC; just a little surprised (and disappointed) that one of the few things which is, to a greater extent, within the platform's control has been allowed to slide, if that's the case.
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trevor
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Post by trevor on Sept 23, 2022 17:28:01 GMT
I don’t see how that can offer a 6 or 12 month account. The interest rate would have to be above 5% which is more than most of the current and new loans, therefore, financial suicide. As I said in my first post on this thread, by only giving us lenders 5 % on most new loans they have painted themselves into a corner. The new loans should have been 7%.
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bugs4me
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Post by bugs4me on Sept 23, 2022 19:23:35 GMT
I don’t see how that can offer a 6 or 12 month account. The interest rate would have to be above 5% which is more than most of the current and new loans, therefore, financial suicide. As I said in my first post on this thread, by only giving us lenders 5 % on most new loans they have painted themselves into a corner. The new loans should have been 7%. 7% doesn't work for me especially with all the associated risks. It never used to be that way with AC. Of course there was always the possibility of a loan going belly up but that's how P2P operates.
Over time, AC have become more and more opaque - more evasive when relevant questions have been asked - extending loans when a default should have been declared but still collecting their monitoring fees thereby reducing returns to lenders - when or if bothering to communicate on the forum it's done in a patronising manner - in fact the list is endless.
No proof on my part but they are obviously gearing up for an IPO where the founder(s) will walk away with fattened wallets. AC have long forgotten that it was the ordinary lender trusting them with their hard earned cash. Sadly private lenders in my view are and have been for a while treated with contempt.
Once the trust goes in any platform and it has with AC, then it's time to leave which fortunately I did a while ago.
As an aside, I read the AC threads out of interest only. What I do not understand is why so many investors/lenders who feel so frustrated about AC continue to invest although I suspect that number is diminishing. Certainly many folks that used to post no longer do so - they have moved on.
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Post by df on Sept 23, 2022 21:12:08 GMT
Loanpad has been my main p2p platform since April 2021. I'm now withdrawing from LP because the rate is too low. I closed my LP account yesterday, and it was refreshingly easy. My withdrawals are scheduled, should be out by mid November unless LP raise the interest to a more competitive level.
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Post by davefoz on Sept 27, 2022 14:58:43 GMT
Loanpad will need to react as regards interest however imho they 100 times more trustworthy than the shower at AC … if your conservative and access isn’t required might I suggest you take the safe option ….up to £85,000 fully protected in an invested 1 yr bond @3.9%. AC is just not worth the risk take it from someone who’s lost £1000’s in predecessors to the access accounts.
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bugs4me
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Post by bugs4me on Sept 28, 2022 9:01:51 GMT
Loanpad will need to react as regards interest however imho they 100 times more trustworthy than the shower at AC … if your conservative and access isn’t required might I suggest you take the safe option ….up to £85,000 fully protected in an invested 1 yr bond @3.9%. AC is just not worth the risk take it from someone who’s lost £1000’s in predecessors to the access accounts. I was under the impression that the access accounts were 'protected' by the discretionary provision fund. The PF was highly promoted by AC and used as justification for the lower rates.
We're all aware of the underhand subtle changing of T's & C's with many P2P platforms pushing the lender further down the priority repayment queue but are you suggesting the PF does not pay out or are loans just being defaulted but not crystallised to avoid payment.
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