Love ebbing away (loan allocation concerns)

Lively SM and very rich pipeline.
Be a bit patient and you will be able to invest all you dream of

I've been with SS for approx. 18 months and think they are excellent. Simple to understand and use website, excellent SM and top interest rate. I'm diversified across 10 platforms and this one has the largest % of my cash. Can't fault them.

£36 on £300 prefund and £81 on pbl 95 on same prefund

Sorry my battery ran out and I had to finish in a rush and I couldn't make my final point which is my biggest point.

Today we got 12% of our requests in a medium sized loan. It turns out the reason is people are putting in false pre funding bids and we even hear the advice on the forum is to put a 0 on the end of what you want. Now it doesn't take a rocket scientist to work out that means that there are people being allocated a lot more than they want and they are doing it because they know the secondary market is like Jack Flash and they can just sell all the surplus they want to sell. And it doesn't take a rocket scientist to work out that the people who aren't putting in silly numbers and telephone numbers and zeros on the end of getting a lot less than they would like because of the first group of people. Think of it like a pair of weighing scales. The more you put on one side the less that is on the other side. The result is that hardly anyone is getting what they really want. Some people are getting given a lot more than they want at the expense of other people who are getting a lot less than they want.

The correct position is the balance in the middle where the majority of people are getting more or less in the ballpark of what they want. The way I work it out is it everybodys bids were accurate that would happen in the case of a medium-sized loan and write up to a biggie.

So how do we achieve this. I've already set out my idea on this and I'm really struggling to find any holes in this dam.

Why do we need 2 sort this out well let me tell you. Because it's getting 12% today on a loan pre fund but in 6 months time it will be 5% and in a year it could be 1%. Because after todays shock the next time more people will read this and put a 0 on the end and the response to that will be the first group of people will react by putting 2 zeros on the end and So It Goes On and the percentage you get allocated goes steadily downwards until you have the ridiculous situation where you have to ask for a million to get 10000 or even 1000 or even 500. In other words it will spiral faster and faster out of control into silly territory and the whole system is fallen into disrepute and that affects the trust on the platform of saving stream and any reduction in trust and faith in a platform put all of us at risk in the end because so much is about trust and faith and support and investor backing and that needs investor confidence and credibility.

And that is why I put it on the table to you that action needs to be taken to bring the pre funding allocation system back in to fairness and to takeaway the opportunities for people to rig the system without penalty.

You may say well it's all ok for me you just have to learn how it works. Well you can say that if you like but I put it to you that I short-sighted short-term thinking on it. And in a year's time you might not be feeling the same way and you might be thinking to yourself that guy on the forum was right I wish more people had listened to him.

I shall now go away and lick my wounds and study the pipeline and the last update from saving stream and decide whether to leave my un invested available funds in the account for a longer period and see if I'm likely to get the money invested in the foreseeable or if I should be putting in a withdrawal request for my surplus and looking elsewhere at other opportunities. That's a decision for me and I want to say I have been investing with saving stream 4 a long time now and I have always got my interests and never suffered a loss and I have to give saving stream 10 out of 10 for past performance. But more important than past performance is Future performance and when I see things showing signs of not being as they could be then as an investor it's for all or any of Us 2 put it on the table and see if we can make things better to keep the Good Ship saving stream on a steady course for the years to come. Thank you.

Nobody's 'rigging the system', but we do have the stupid situation where everyone is sticking in 4x what they want, (except for a very few who don't) and they all wind up getting pretty much what they'd have got if they'd all put in what they really wanted (except again for the few...). It is, indeed, an upward spiral, limited only by SS saying 'you can't bid more than your entire current holding' (so most folks can only put one zero on the end, not two). The 'allocate bottom up' (as used for loans under £1m, which this was just over) would have resulted in more folks getting closer to what they asked for (but the people who wanted £200k, and maybe bid £500k or more, would have been even more sadly disappointed).

'Hold it for 7 days' doesn't really help .. people (having got what they wanted or less) are probably quite willing to hold for 7 days, if required. They can always fund by selling something else, or fund by a rather temporary transfer from their bank. The problem is, and will remain, demand outstripping supply. Oh and none of the 'Friday 13th' / 'this week' / 'soon' repayments happened yet .. when they do, things will be even worse.

Maybe we need to think about a Zopa style incentive where recycled money always gets preferential treatment ('head of the queue') over new deposits??

yes that's very good that's what I was trying to say about the upward spiral. when a game starts being played, as more people find out about it and learn the rules you get more people wanting to play the game and my bet after reading some eye opening stuff on these boards is that the number of people playing the game is going up and up and it can only go up higher as more people read about how to beat the system. so like I was saying if something isn't changed before long the exaggerated pre fund bids will be even more exaggerated and nearly everyone will start going even Higher just to stand still and get the same as before. it's a game of Madness because the pot of money to be funded is still the same and the number of investors is still the same yet you end up with people asking for 50000 or 100,000 to get 1000 when if they'd all put in honest accurate numbers in the first place they would have got the same amount more or less. it would all be so much more transparent and clearer and the whole process would have much more credibility amongst investors and following on from that saving stream would have more credibility.

I could be wrong about this but I would bet the majority of investors on saving stream don't read this forum and post on it they are putting in their Pre fund bids and getting ever more disappointed and disillusioned because they haven't got all the inside info about the tricks of the trade.

what people can't see is that if everybody played straightforward and fair and requested what they would like then it would be better for everyone surely. I am sure there's a lot of straight minded folks out there and I count myself on monks them who don't like having two play games when there's money involved and it's all a bit off putting when you think you have to run with the Pack just to stand still. what are think should happen is something has to be done to stop the pack running.

my other point is that I have only read a part of what is on The peer to peer boards and I can see there is an awful lot of very good information here. but the other thing I have Seen Is there are some posters on here who I'll posting all the time all over the place and have loud voices on here and what happens with any forum and I'm not criticizing this one is you'd get a distortion of viewpoints because some people shout louder than others and some people keep their thoughts to themselves even though they may have the best thoughts and ideas of all. they could even be a silent majority of people who don't poke their heads above the parapet who don't agree with what the big noises are Saying on here. so just because 10 people might come along and say I'm an idiot that's fine with me but I don't book my brain in for a service and think it's gone wrong just because of that because I know how it is on forums.

Regards to all

I'm with you on that one 4 sure.

Brian