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Post by chielamangus on Jul 1, 2014 10:29:33 GMT
I quite like how their format works tbh. I bet you'd be miffed if your reinvestment was taken at say 6% and the market rate was 6.8%? Literally takes 30 secs a day to manage it all. Actually, it is set way above market rate with over 200k in front. And 30 seconds of my life is worth a lot. You must be fairly young to value time so little! Damn, I've just lost another 30 seconds.
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jonbvn
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Post by jonbvn on Jul 1, 2014 11:10:30 GMT
Hope it explains your confusion jonbvnI have been getting such emails since I started with RS. Therefore, I was confused when someone was complaining about not knowing when loans were repaid early. Anyway, I would like to take this opportunity to encourage all my sub-6% borrowers to pay back now.
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Post by GSV3MIaC on Jul 1, 2014 17:38:31 GMT
Hmm, I've never previously had such an email .. maybe my contact preferences were wrong, maybe something has recently changed? (Maybe someone from RS is reading this thread and can tell us with certainty!?). I have had, now I think about it, once instance where £500 or so was repaid and languished for several days until I noticed. ('a few minutes a day' is all very well, until you are ancient, and have several P2p sites, and other things, all asking for their 'few minutes'.)
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Post by westonkevRS on Jul 1, 2014 18:14:10 GMT
I do read the forum, and was confused by the recent thread as I thought these contact settings were in place. So I did check with our system gurus... They didn't respond yet (holidays) and I'll chase but it does look like my query kick started something. I'll let you know....
Kevin.
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mikeb
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Post by mikeb on Jul 1, 2014 18:22:25 GMT
I've had bounce back's from RS a few times, but what annoys me most is that RS don't notify you so if you don't have any re-invest options actiated it can just sit in your account until you notice. I'm a bit confused by your point. As soon as a loan is repaid early, I get an email from RS. "Repaid early" is a user-selectable emailable event. Check your preferences if you want them, and don't get them. "Bounced back" (Borrower said they didn't want the loan,while in the cooling off) is not the same thing and AFAIK generates no email.
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Post by chielamangus on Jul 1, 2014 19:57:16 GMT
I do read the forum, and was confused by the recent thread as I thought these contact settings were in place. So I did check with our system gurus... They didn't respond yet (holidays) and I'll chase but it does look like my query kick started something. I'll let you know.... Kevin. and perhaps you would also ask why reinvestment settings are ignored .... see my comment a few hours ago.
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warn
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Post by warn on Jul 2, 2014 4:45:12 GMT
I do read the forum, and was confused by the recent thread as I thought these contact settings were in place. So I did check with our system gurus... They didn't respond yet (holidays) and I'll chase but it does look like my query kick started something. I'll let you know.... Kevin. and perhaps you would also ask why reinvestment settings are ignored .... see my comment a few hours ago. chielamangus, I've been muttering about this behaviour for a while - mostly in this thread. First RS response was "no, you're wrong, that absolutely can't happen", which over time morphed into "there's a jolly good reason why it works that way" (though the good reason was never articulated). westonkevRS averred that he ws considering whether to change the system to behave like the documentation or vice versa, so perhaps something will happen at some point.
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markr
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Post by markr on Jul 2, 2014 8:22:22 GMT
I don't use it, but as far as I can tell from the posts here, it seems to be working according to the documentation, which says it will re-invest at your rate, or market rate, whichever is the higher.
I think the only issue is that the re-investment will be made very early in the morning when the market rate is higher than during the day; it usually drops by 0.2-0.3% or so by 9am on a weekday but slowly climbs back again through the day. So, if you log in in the morning your re-investment may well appear to be well above market rate (even more so on the first-weekday-of-the-month, which yesterday was) with a few hundred k in front of it, but the key point is the rate will rise again and your order will probably be matched within a day or two.
There is a risk that a risk that an order placed at market rate won't get matched, mainly in a market where rates are on a long-term downward path, but then there's a danger your floor limit wouldn't be matched either. RS can't ever be truly fire-and-forget, but auto-reinvest does allow you to limit logging in to maybe once a fortnight to assess the rate trend, check your floor limits and free any stuck orders.
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warn
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Post by warn on Jul 2, 2014 17:06:06 GMT
I don't use it, but as far as I can tell from the posts here, it seems to be working according to the documentation, which says it will re-invest at your rate, or market rate, whichever is the higher... Quite right, it does say that. It also defines market rate (or rather, Market Rate), as being a variable figure. If you ask for income to be reinvested at Market Rate, those offers are not fixed at whatever figure obtains on the day the repayment is made, but are free to be repriced if the following day's Market Rate is lower. This is not so if you set what RS call a "floor". Once priced, they stick. That's arguably contrary to the documentation, and certainly contrary to the expectations of the man on the Chiswick omnibus.
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markr
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Post by markr on Jul 2, 2014 17:16:50 GMT
If you ask for income to be reinvested at Market Rate, those offers are not fixed at whatever figure obtains on the day the repayment is made, but are free to be repriced if the following day's Market Rate is lower. Are they? OK, well yes that's inconsistent behaviour. Which is correct is a matter for debate, but they should at least be consistent (i.e. the only difference between the two options should be the floor limit).
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warn
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Post by warn on Jul 2, 2014 20:30:33 GMT
Yep.
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Post by westonkevRS on Jul 3, 2014 11:53:12 GMT
The point about ".... if you set what RS call a "floor". Once priced, they stick" is correct and has been debated before on this forum. I referred to this rate as "stranded"
The "stranded" occurs very rarely because money at the MR has pretty much always been lent same-day at RateSetter the last 6 months or so. And as such, although we know about this issue haven't given it pripority internally to discuss.
It might seem obvious to vary the daily rate to the MR as long as it stays above the floor (rather than fix). The issue is that if you set a 'Your Rate' (the floor) higher than the Market Rate which then drops money could be left unmatched for a period of time. This was the original model at RateSetter, can caused some customers to complain that there money was left stranded. So for example customers from the old days that had YR set at 7%, but hadn't realised normal rates were 5 to 6%..... and weren't using the "Unmatched funds on market" notifications.
So basically there isn't a perfect solution, there will always be someone unhappy.
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Post by westonkevRS on Jul 3, 2014 12:05:11 GMT
I do read the forum, and was confused by the recent thread as I thought these contact settings were in place. So I did check with our system gurus... They didn't respond yet (holidays) and I'll chase but it does look like my query kick started something. I'll let you know.... Kevin. and perhaps you would also ask why reinvestment settings are ignored .... see my comment a few hours ago. The settings are (in theory) quite extensive, mine are set for everything: Although I am interested by the post regarding cooling-off pay backs not included in the early repayment notification. This I'm checking....
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Post by chielamangus on Jul 3, 2014 12:19:14 GMT
Mmmm. Mine are all ticked too. It doesn't change the fact that my reinvestment settings are ignored/changed. Some here don't mind this but I do. If money is going to be moved further back in the queue for a higher interest rate then we should at least be notified that same day.
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warn
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Post by warn on Jul 3, 2014 13:45:16 GMT
... if you set a 'Your Rate' (the floor) higher than the Market Rate which then drops money could be left unmatched for a period of time. This was the original model at RateSetter, [and] caused some customers to complain that [their] money was left stranded... What you're saying, Kevin, is that originally, customers could instruct you not to lend their money below a certain minimum rate, and so you didn't, and they then complained. Now what happens is that customers can instruct you not to lend their money below a certain minimum rate, and given not uncommon circumstances you don't lend their money even at rates well above that minimum, and we complain (well, I do, anyway). I have a view as to which of the two complaints is the more justified -- but then, I'm probably biased.
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