p2pmark
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Post by p2pmark on Dec 27, 2017 8:42:20 GMT
"It's probably not illegal but quoting an APR based on immediate reinvestment which has never been available is misleading. I'd rather they quoted a realistic and achievable target rate - other sites do that (allowing for defaults etc)." Thanks for explaining that to p2pmark. Sometimes you have to spoon feed to those that think everyone plays with a straight bat. Don't forget they 'pulled' private investors in with the juicy 6.5% carrot that lasted about a week and then slid all the way down to 5.2%. But wait a minute, 5.2% isn't really 5.2% as the cash drag is huge, so yes it's a scam in my eyes. You are lucky to get 3% I reckon. I presume p2pmark is on the borrower side of this game, either that or is a charitable type chap. If not including cash drag in the headline rate is scammy, then pretty much every p2p operator is scammy. Cash drag seems to be a few days, making the actual return around 4.5%, so comparable to ratesetter (before taking into account potential cash drag with them). I'm a lender not a borrower. For what it's worth I doubt the return they offer is worth the risk, so I'll be leaving once I get my bonus. But I don't think they're scammy. If you dislike them so much why don't you leave? Given you think they're scammy you obviously wouldn't trust then to pay any bonuses (which make the true return you get much higher in any case).
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alender
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Post by alender on Dec 27, 2017 11:40:18 GMT
If not including cash drag in the headline rate is scammy, then pretty much every p2p operator is scammy. Cash drag seems to be a few days, making the actual return around 4.5%, so comparable to ratesetter (before taking into account potential cash drag with them). I have a tracker account with Landbay,a 30 day account with AC, with both you get the interest rate advertised, also have an account with RS and you do get what is advertised. This obviously makes comparing to GS no better than a guess as the GS advertised rate has never been achieved since I started with them. GS cash drag improved for a short time this month but has got worse again. Probably worth holding for a time to see if it improves and perhaps for a year to get the bonus. All in all I use GS for diversification and even with the fact that you can not get anything like the advertised rate still prefer them to RS with all the goings on with how the rates are set, the PF and other things.
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savernake
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Post by savernake on Dec 27, 2017 12:29:16 GMT
I have lender accounts with GS and unbolted. A few weeks ago I received an email from unbolted informing me the bank account in which they hold lenders funds had received an interest payment from their bank. Unbolted had decided to pass this interest onto their lenders. Seems only fair as it was OUR money that had earned the interest. Well done unbolted!
Why haven't GS done this? I imagine they must have earned a fair whack of interest from OUR money over the last few months whilst it has been waiting to be matched to borrowers. Passing it on to us lenders would go some way towards addressing the simmering discontent over the cash drag issue.
This example highlights to me the contrasting attitudes each platform has towards their lenders. With unbolted you feel they are playing with a 'straight bat' and have their own interests aligned with their lenders. In contrast, GS seem more focused on looking after their borrowers, and we lenders are too often taken for granted.
I don't believe GS are a scam, but they could do a lot more to earn the trust and loyalty of their lenders.
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Post by p2plender on Dec 27, 2017 14:06:26 GMT
GS must indeed earn a fortune from money sat idle. Pass it on? No chance, GS has nil interest in looking after lenders.
Yes I'm winding things down (again). They fooled me (again) into thinking cash drag would be minimal with all this 'new business' coming their way. All in all it was just another excuse to make sure there was sufficient cash in the pot to keep borrowers happy at the expense of lenders.
Not sure how you can compare RS to GS btw. With RS you can lend at the rate you are offered, unlike GS where you enter your money into the borrowers lucky dip fund, cross fingers n toes and hope you get lent out within the week. As they say, for fun money only.
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m2btj
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Post by m2btj on Dec 27, 2017 15:10:23 GMT
I would have needed to invest £3000 to take advantage of GS December cashback promotion. I chose not to increase my holding believing that the promotional cash inflows would further slow the time to get invested. Last week I withdrew reinvestment cash sitting in my holding account following a wait of four days. That money is now in an AC 30 days notice Isa account earning 4.25% tax free.
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jsmill
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Post by jsmill on May 24, 2018 9:10:17 GMT
Current matching rates are at 1 day. For a 5.3% rate and flexibility of 30 day commitment I am happy with that so have upped allocation.
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benaj
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Post by benaj on May 24, 2018 10:14:14 GMT
It varies, I lost 8 days of interest back in December.
If a borrower repays a loan early and there is a longer queue, the effective rate is lower. Sometimes, the reinvestment happens on the same day
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huxs
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Post by huxs on Jun 25, 2018 13:23:08 GMT
Just thinking about investing how long are the reinvestment delays at the moment?
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benaj
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Post by benaj on Jun 25, 2018 16:15:27 GMT
I am happy with the deployment rate, at the moment, it's 97.5%.
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liso
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Post by liso on Jun 25, 2018 16:18:30 GMT
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Post by Ace on Jun 26, 2018 0:03:59 GMT
From a fairly short personal experience (an initial investment and 3 monthly recycles) my cash drag has been: 2 days, 2 days, 0 days, 2 days so far.
One of those loans was paid back early (after 8 days on loan).
I keep a small amount of funds here that I might need in short order, but keep more in LW 5 yr for the higher rate and reduced cash drag once invested. It's only a 0.6% fee for early access in LW (though access is obviously not guaranteed).
EDIT: I have corrected the above figures as I originally misunderstood my statements. I've had 1 more completed loan since. It ran to full term and was reinvested on the same day.
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ceejay
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Post by ceejay on Aug 10, 2018 12:44:32 GMT
I'm relatively new on this platform, and I'm not heavily invested - just using it as an alternative to RS for short term funds. But I note that the queue length has now gone out to 4 days, whereas the longest I've previously noticed (over the last few months) has been 2 days.
Would those who have been here longer than me care to comment on the likelihood of this being a short term phenomenon?
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benaj
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Post by benaj on Aug 10, 2018 13:01:56 GMT
To be honest with you, no one likes cash drag initially. IMHO, GS is not too bad. My worst 8 days interest lost back in December 17 when I first started with GS. The matching time has been very good generally in 2018, most of the time my reinvestment was matched same day.
Checking my latest transaction history, all my reinvestment was matched on the same day back in 6th Aug.
So someone must have dumped a large lump sum after the 6th Aug.
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morris
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Post by morris on Aug 13, 2018 6:36:11 GMT
Cash drag does seem a bit high at the moment, 92.4% deployment and £1.340m queue. It could be due to August holiday slowdown and will probably pick up again in September.
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jsmill
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Post by jsmill on Aug 13, 2018 10:06:54 GMT
Also higher than I have seen it in the last year (excluding christmas). Generally I have found it to be matched next day. Will keep an eye on it but happy with it for the time being.
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