oldgrumpy
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Post by oldgrumpy on Feb 11, 2014 22:00:44 GMT
Ratesetter should stop this business of filling in "my selected rate" completely. All it needs is someone to put in a tenner at "that selected rate" - and down it goes by 0.1%. Someone else hurls in £20 at that new rate, and down it goes again by another 0.1%; nothing to do with market rate or a reasonable pre-selection for the prevailing money available situation. This can happen three or four times, meaning that a "last match" of 5.7% can be displayed simultaneously with a "my selected" of 5.2% when there's only a few hundred quid between the next match and 5.7% again!!
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markr
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Post by markr on Feb 12, 2014 9:48:05 GMT
Ratesetter should stop this business of filling in "my selected rate" completely. Agreed! I'm not against filling it in but please at least at the minimum rate, or 0.1% above it, NOT 0.1% below it! Even better would be to make a sensible calculation based on lending volumes and market volumes to predict the best rate that will be reasonably certain to be lent in, say, a few days.
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Post by davee39 on Feb 12, 2014 10:24:44 GMT
RS have suffered remarkably little criticism, but this prefilling is the first tweak which has ruffled a few feathers. Yesterday I matched at 5.6% in a couple of hours while the prefill was 5.1 in 5 yr. Those who understand the system get better rates, those who do not still get excellent rates, and help with slightly lower borrower rates - encouraging more borrowers and benefiting everyone. Plus if a low rate is committed to it can be easily cancelled. No one should be investing without at least reading the screen and understanding what they are doing. Both at RS ,and the oft criticized other place, savers get a very good deal compared with the dishonest activities of the Banks.
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oldgrumpy
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Post by oldgrumpy on Feb 12, 2014 11:42:28 GMT
It is hard to understand some people. The main "market rate" seems to be 5.5% or just above this morning. With £10K offering at 5.3%. and just £869 at 5.4%, someone (2 people) has manually slammed in £27.5K at 5.0%!!
So RS has changed "my selected rate" automatically to 4.9%!! Get real RS!! I like your operation but this is silly. Let the people fill in a blank field at their own rate; make them think. You do not decide "my selected rate" I (we) do! (Yes this is a storm in an egg cup, I know )
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Post by pepperpot on Feb 12, 2014 11:55:41 GMT
It is hard to understand some people. The main "market rate" seems to be 5.5% or just above this morning. With £10K offering at 5.3%. and just £869 at 5.4%, someone (2 people) has manually slammed in £27.5K at 5.0%!!
So RS has changed "my selected rate" automatically to 4.9%!! Get real RS!! I like your operation but this is silly. Let the people fill in a blank field at their own rate; make them think. You do not decide "my selected rate" I (we) do! (Yes this is a storm in an egg cup, I know ) There's a button just to the right of that field marked 'Higher', have you seen it?
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oldgrumpy
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Post by oldgrumpy on Feb 12, 2014 11:59:30 GMT
I have. Others have seen quicker it seems. Maybe they think 5.0% will be quicker then 5.2% when both are bottom offers. I'm still in the greedygrumpy slot of 5.7% and waiting till Thursday before reassessing the situation! edit: now there is £23K in 5.5% (lowest offer), nothing in 5.4%, yet RS have filled in the rate as 5.3% (because there is a borrower who wants it). It should be 5.5% or blank! edit 15:52 market rate is 5.6% (£194K on offer). A borrower wants to pay 5.3%. Kevin - Why has Ratesetter filled in the lender's "selected rate" as 5.3%? Don't you like lenders? Are you geared (like Zopa) against lenders and towards borrowers?
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mikeb
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Post by mikeb on Feb 12, 2014 18:44:39 GMT
Kevin - Why has Ratesetter filled in the lender's "selected rate" as 5.3%? Don't you like lenders? Are you geared (like Zopa) against lenders and towards borrowers? Yes please - Kev/Ratesetter - don't go and Zopa it all up! I'm sure you're well aware that there's a strong marketing point in NOT being Zopa right now I know it's easy to change the default if you don't like it, but this sort of thing was the beginning of Zopa's market fiddling, just a subtle "green means ok to lend" "orange means slow" "red means no way" ... and many worked out where the flaw in that was! Those that didn't, just aimed for green and forced the market down.
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mikes1531
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Post by mikes1531 on Feb 15, 2014 4:23:51 GMT
Those that didn't, just aimed for green and forced the market down. That seemed to be Zopa's objective at the time. Perhaps it's RS's objective now?
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Post by chielamangus on Feb 18, 2014 12:11:33 GMT
Further evidence of RS's desire to have lower rates (and therefore greater volume and revenue) is their custom of sending emails urging you to lower the rate asked when you have had money sitting idle for 4 days. I received one even though the volume data suggested that rates would soon rise - which they did.
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oldgrumpy
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Post by oldgrumpy on Feb 18, 2014 12:27:57 GMT
I got one of those for the first time the other day. It referred specifically to a single small part which had been on offer (and just missed the matching cut a couple of times) for seven days. Other parts were not referred to, and all were lent out a day or so later. I never offer at the suggested rate, but up to 0.5% above, and usually wait up to three days for the match - usually one or two.
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Post by davee39 on Feb 18, 2014 18:41:23 GMT
Further evidence of RS's desire to have lower rates (and therefore greater volume and revenue) is their custom of sending emails urging you to lower the rate asked when you have had money sitting idle for 4 days. I received one even though the volume data suggested that rates would soon rise - which they did. I think that is rather unkind. On 5 yr there is £45k sitting at above 6%, this seems unlikely to be matched any time soon and is earning 0%. The antics of some P2P organisations seem to be creating excessive cynicism. RS stats are clear so savers can make their own judgement. Furthermore the bigger RS profits are, the safer the platform becomes for all savers.
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Post by westonkevRS on Feb 18, 2014 19:46:26 GMT
Thank you Davee, the notifications are there to help. People can turn them off if they want, and some lenders with forgotten (zombie?) or unrealistic offers might change their mind. If you didn't give these notifications people would say we should. Dammed if you do, rammed if you don't....
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Post by chielamangus on Feb 18, 2014 20:48:03 GMT
Further evidence of RS's desire to have lower rates (and therefore greater volume and revenue) is their custom of sending emails urging you to lower the rate asked when you have had money sitting idle for 4 days. I received one even though the volume data suggested that rates would soon rise - which they did. I think that is rather unkind. On 5 yr there is £45k sitting at above 6%, this seems unlikely to be matched any time soon and is earning 0%. The antics of some P2P organisations seem to be creating excessive cynicism. RS stats are clear so savers can make their own judgement. Furthermore the bigger RS profits are, the safer the platform becomes for all savers. Not unkind, just a statement of fact. My money was 0.1 and 0.2 above the current market rate, not stuck up in the clouds (who are these people that bid at these levels and really do condemn themselves to an uninteresting future?). I have no objection to RS reminding these i*i*t* that they are losing interest. But to send them out to people whose money is within the "window" is just irritating. So, Westonkev, it's just a question of RS being rather more thoughtful in their mailings. Also, bear in mind the context of this email - the subject I joined was the default rate in the box being below the current market rate which irritated some (including me) in this forum. I was providing supplementary evidence of the tendency of RS to nudge rates lower. Of course, I want RS to be successful and make profits - and it will achieve that more easily if it pays attention to these irritations it is currently generating. It is hardly going to be much effort to make the changes. While I'm at it, may I suggest another improvement? Please may we have all data within a given table (I'm thinking especially of "Ratesetter info") presented consistently to the same number of decimal points to enable easy comparisons and assessments? Some data is in £k, some in £ and p, some to one decimal place, some to none. The resultant columns are haywire and confusing. Again, it could all be standardised within a minute or so. What do you think, Westonkev?
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oldgrumpy
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Post by oldgrumpy on Feb 18, 2014 21:11:07 GMT
(chielamangus)
"Also, bear in mind the context of this email - the subject I joined was the default rate in the box being below the current market rate which irritated some (including me) in this forum. I was providing supplementary evidence of the tendency of RS to nudge rates lower."
5.7% matchings are happening now. There is £177K at this market rate. Someone has put in £901 at 5.6% to be front of the queue. Fair enough. A borrower wants to pay 5.5% so RS have made 5.5% the market rate. I really do think the market rate in this instance should be 5.7%. If I stick a tenner in at 5.5% now, RS will change the market rate to 5.4%, dspite the next match probably having to go out at 5.7%. (dammit I only got 5.6% today )
There is £380K on offer at 5.8% or above and much of that will have been languishing for a long time. I think it is a good thing that RS reminds them after a week or so that their rate may be too high, but having done that, I have no regard for those people's non-earning funds. That is their lookout.
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Post by djia977 on Feb 24, 2014 8:44:04 GMT
What I think is right that our "risk premium" as an unregulated non bank wnon FSCS protected business isn't too high. And I honestly think the different between our 5.7% 5-yr return compared to our main competitor and the banks is too high. We should have the lowest risk premium over the banks of all the Alt Finance providers and one day even lower when we are perceived as even safer place for money! We have a dream..... If I understand the above correctly, this sounds like Kevin believes that RS rates should be below those of Zopas due to a lower risk premium. Recent changes such as the deceptive use of default lending rates in order to rachet rates down are clearly part of realising that 'dream'. This is a great shame as RS were doing so well offering a stable simple proposition whilst Zopa ballsed up at every turn.
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