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Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

Any other investment discussions eg. peer to peer lending
kempiejon
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350116

Postby kempiejon » October 23rd, 2020, 3:03 pm

I see Wellesley are winding up, a Company Voluntary Arrangement to allow them to pay their creditors in a managed timescale. P2P lenders will be getting between 31p and 47.95p in the £ over the next 14 months or so. They gave me an ipad to open an account I also got a quido/topcash back finders fee and have extracted all my deposit and some interest. I have a tiny, few quid, loan in arrears with them so I might even get a few more pennies from them. Sorry for anyone caught out but profitable for me.

Nocton
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350138

Postby Nocton » October 23rd, 2020, 4:47 pm

Wellesley is/was a very specialised lender that stopped offering P2P some years ago. It is totally different from Ratesetter which has a much more diversified loan book. As mentioned earlier, RS is not really a true P2P. It's now more like a bank lending unsecured loans and in fact has been taken over/absorbed into Metro.
Relevant quotes re Metro's acquisition:
"Following completion, Metro Bank will use its deposit base to fund all new unsecured personal loans originated via the RateSetter platform on Metro Bank's balance sheet. RateSetter will continue to manage the existing RateSetter loan portfolio and Provision Fund on behalf of its existing peer-to-peer investors, with Metro Bank assuming no credit risk for these existing loans. "
“Please note that with all new unsecured personal lending being funded by Metro Bank, the weighting of the investor loan portfolio towards secured lending will increase,”
“Investment releases are expected to remain constrained for a period and we ask anyone choosing to continue to invest or reinvest to only do so if they do not need early access to their funds for the time being.”

I think the last statement is relevant; the Guardian article and other similar comments is in danger of causing a self-fulfilling 'bank run' when there is really no risk to savers' money.

jackdaww
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350224

Postby jackdaww » October 24th, 2020, 7:58 am

had an email from ratesetter .

i recently instructed them to release my funds (c.£100) for withdrawal.

they suggest i cancel the withdrawal - so that my cash will then start earning interest again.

so what is the point of that if the chances of ever getting that earned interest out are near zero?

:x

Lanark
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350237

Postby Lanark » October 24th, 2020, 9:28 am

jackdaww wrote:had an email from ratesetter .

they suggest i cancel the withdrawal - so that my cash will then start earning interest again.


That's not true, perhaps misleadingly worded - the funds you have requested to withdraw remain fully invested and earning interest until they are released.

Itsallaguess
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350238

Postby Itsallaguess » October 24th, 2020, 9:32 am

Lanark wrote:
jackdaww wrote:
had an email from ratesetter .

they suggest i cancel the withdrawal - so that my cash will then start earning interest again.


That's not true, perhaps misleadingly worded - the funds you have requested to withdraw remain fully invested and earning interest until they are released.


I wonder what it said -

"No, you can't have your money back, but please be aware that all the time we're keeping it from you, it will be earning interest....."

That's all right then....

Cheers,

Itsallaguess

Mike4
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350253

Postby Mike4 » October 24th, 2020, 10:53 am

jackdaww wrote:had an email from ratesetter .

i recently instructed them to release my funds (c.£100) for withdrawal.

they suggest i cancel the withdrawal - so that my cash will then start earning interest again.

so what is the point of that if the chances of ever getting that earned interest out are near zero?

:x


The point is, surely, the more people wanting a withdrawal they can fob off, the longer they can keep the company afloat, and the longer they can keep drawing their director's salaries.

kempiejon
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350262

Postby kempiejon » October 24th, 2020, 11:29 am

I thought Ratesetter matched lenders to borrowers. In my mind in this model the lender has lent money which is due to be repaid over a known term, now the lender wants to break that agreement and extract their principal early - but the borrow hasn't repaid it yet so the money isn't there. It's not a like bank deposit, the only way a lender can get their cash out early is if an alternative investor/lender wants to take that loan. Strangely with economic uncertainty coupled with stories like those on here of an unreasonably long waiting list of lenders trying to get out early the new investors are thin on the ground.
A run on the loan book and no new money could perhaps topple the operation so fobbing them off would help keep the company afloat.

Mike4
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350282

Postby Mike4 » October 24th, 2020, 12:26 pm

kempiejon wrote:I thought Ratesetter matched lenders to borrowers. In my mind in this model the lender has lent money which is due to be repaid over a known term, now the lender wants to break that agreement and extract their principal early - but the borrow hasn't repaid it yet so the money isn't there. It's not a like bank deposit, the only way a lender can get their cash out early is if an alternative investor/lender wants to take that loan. Strangely with economic uncertainty coupled with stories like those on here of an unreasonably long waiting list of lenders trying to get out early the new investors are thin on the ground.
A run on the loan book and no new money could perhaps topple the operation so fobbing them off would help keep the company afloat.


If the lending model is as you describe (and I thought it was too, but other posts suggest not), fobbing them off should not be necessary. Just pointing out to lenders who want 'out' that they simply can't have their money back until the peer that borrowed it has repaid the loan, should be all that is required.

But the general tone of the thread suggests that lenders have some sort of entitlement to their money back early.

jackdaww
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350303

Postby jackdaww » October 24th, 2020, 2:37 pm

Lanark wrote:
jackdaww wrote:had an email from ratesetter .

they suggest i cancel the withdrawal - so that my cash will then start earning interest again.


That's not true, perhaps misleadingly worded - the funds you have requested to withdraw remain fully invested and earning interest until they are released.


================================

no intention to mislead on my part.

this is what it said --

"You can choose to keep your money invested and earning by cancelling or reducing your release request via your account dashboard."

i assumed this to mean my investment was not earning .

is their statement misleading?

:?

PinkDalek
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350305

Postby PinkDalek » October 24th, 2020, 2:52 pm

jackdaww wrote:this is what it said --

"You can choose to keep your money invested and earning by cancelling or reducing your release request via your account dashboard."

i assumed this to mean my investment was not earning .

is their statement misleading?

:?


See https://p2pindependentforum.com/thread/17814/update-investment-release-requests-weekly for the views of others.

chas49
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350332

Postby chas49 » October 24th, 2020, 4:28 pm

jackdaww wrote:
Lanark wrote:
jackdaww wrote:had an email from ratesetter .

they suggest i cancel the withdrawal - so that my cash will then start earning interest again.


That's not true, perhaps misleadingly worded - the funds you have requested to withdraw remain fully invested and earning interest until they are released.


================================

no intention to mislead on my part.

this is what it said --

"You can choose to keep your money invested and earning by cancelling or reducing your release request via your account dashboard."

i assumed this to mean my investment was not earning .

is their statement misleading?

:?


It seems poorly worded at least. On your account dashboard it will say " The values shown below are accurate from the date of your request. Your money in the queue is still on loan and continues to accrue interest. You may cancel a request while it is queuing."

chas49
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350335

Postby chas49 » October 24th, 2020, 4:38 pm

Mike4 wrote:
kempiejon wrote:I'm trying to get out of RS too, I've been watching the numbers and concur with about 100 per month, so with 19050 it'll be ages


Best part of 16 years actually, at that rate.


I'm a bit further up the queue at ca. 16000.

I noted my position last week - and again today - I've moved up by 180. That seems a fair bit 'faster' than 100 a month. It's still a long queue though. (On the positive side the amount released in the last 2 weeks has jumped up a fair bit compared with the last couple of months)

jackdaww
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350342

Postby jackdaww » October 24th, 2020, 5:31 pm

jackdaww wrote:
RockRabbit wrote:I'm with RS and put my withdrawal request in during March - I'm still in the queue. The queue only appears to reduce by a few dozen a week so if you are 19,050 you might have quite a wait.


=====================

so when they say i will have a months wait , that is a porky ??

:?


====================================
it actually said ---

" It is difficult for us to give specific timing guidance on when your request will be processed but you should expect it to take over a month to complete from the date you made it. "

i think that should read - over a year -- or more ...

:roll:

kempiejon
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350345

Postby kempiejon » October 24th, 2020, 5:34 pm

chas49 wrote:
Mike4 wrote:
kempiejon wrote:I'm trying to get out of RS too, I've been watching the numbers and concur with about 100 per month, so with 19050 it'll be ages


Best part of 16 years actually, at that rate.


I'm a bit further up the queue at ca. 16000.

I noted my position last week - and again today - I've moved up by 180. That seems a fair bit 'faster' than 100 a month. It's still a long queue though. (On the positive side the amount released in the last 2 weeks has jumped up a fair bit compared with the last couple of months)


I made my claim to cash out 14th April, I've been keeping screenshots, I'm at 9921 today, was 10204 9th Oct, 10414 18th Sept and 10534 10th Sept.

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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350361

Postby AleisterCrowley » October 24th, 2020, 7:14 pm

I've got a bit in RS as mentioned -
Just been looking at it today and I can't work out how the reinvestment/contract rolling works
I've got money in Access, Plus, Max, and 1 year - about 55% of total, 45% in holding account
Access, Plus, Max have a reinvestment option > market rate or own rate, and I have got all these wound up to stupid rates (5%-7%)
Looking at the Access a/c , set at 5.3%, I can see regular new contracts at well under 5.3%

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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350385

Postby Lanark » October 24th, 2020, 10:04 pm

AleisterCrowley wrote:Just been looking at it today and I can't work out how the reinvestment/contract rolling works

I think its basically impossible to unravel what they are doing to match borrowers and lenders.
All the borrowing is on terms of 3 to 10 years, while most of the lending is on much shorter terms. When you lend money it will be split into multiple pots for different borrowers with different repayment dates.
Some of those borrowers will reach the end their loan term or choose to repay it early and so that contract rolling will happen to parts of your investment, seemingly at random and far more often than I would have expected.

When I looked into the contract details a lot of borrowers seem to be paying quite high rates, around 15-17% from memory.

AleisterCrowley
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350484

Postby AleisterCrowley » October 25th, 2020, 1:05 pm

I'm going to dump all the info into a spreadsheet and see if I can unravel the flows of money into and out of various contracts
I'll wait until working hours though, so I get paid to do it (as a training exercise..) :D

chas49
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350503

Postby chas49 » October 25th, 2020, 3:01 pm

AleisterCrowley wrote:I've got a bit in RS as mentioned -
Just been looking at it today and I can't work out how the reinvestment/contract rolling works
I've got money in Access, Plus, Max, and 1 year - about 55% of total, 45% in holding account
Access, Plus, Max have a reinvestment option > market rate or own rate, and I have got all these wound up to stupid rates (5%-7%)
Looking at the Access a/c , set at 5.3%, I can see regular new contracts at well under 5.3%


Is there a reason for leaving the money in the holding account? It's not earning there and you can withdraw it.....

AleisterCrowley
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350511

Postby AleisterCrowley » October 25th, 2020, 3:46 pm

It's an ISA. I may well transfer to a Cash ISA at some point.

chas49
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Re: Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’

#350605

Postby chas49 » October 25th, 2020, 10:43 pm

AleisterCrowley wrote:It's an ISA. I may well transfer to a Cash ISA at some point.


Good point. Though with rates as low as they are generally, the advantages of the tax shelter are less clear than they used to be.


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