But now she and all of the other investors will have their accounts closed on 2 April. I feel like they are sort of selling us out. We paid to restore the PF [provision fund] through reduced interest rates, but we barely benefit from that because at the point the PF is back in good condition and interest rates are restored, Metro step in, buy the loans and enjoy the benefits.
Hard to see a better way out. The purpose of the provision fund was to fund expected losses from the loans, and it will continue to do this.
Strengthening the provision fund, protecting all investors equally, was a necessary part of that. RateSetter is essentially a lending platform that facilitates the matching of loans between lender members and suitable borrowers. RateSetter targets the personal loan market and their business depends on attracting creditworthy borrowers.
Loans may be secured or unsecured whether those loans be to individuals or businesses. Security may be taken over tangible or intangible property, for example, an automobile which is owned or proposed to be owned by a borrower.
RateSetter advertises that using technology they can offer borrowers a better deal — usually in the form of a lower interest rate than alternative loan options. The interest rate disclosed by RateSetter for borrowers is as follows:.
RateSetter launched as the first P2P lender licensed to provide services to all Australians, not just wholesale and sophisticated investors. Participation is available to all investors including individuals, self-managed superannuation funds, trusts and other entities. You must apply to be a member, and your membership application must be accepted by RateSetter Australia, before you can lend. This approach is much the same as a real estate agent who manages a rental property on behalf of a landlord.
It is the real estate agents job to manage the process and ensure the property has a good tenant, while the landlord will pay a percentage of rent for this service. Just like a letting agent, RateSetter must keep both parties to the transaction happy in order to have a viable business. Interest rates are set by the market of lenders and borrowers, according to the supply and demand of funds at different interest rates. The timing of payments will depend on the lending market in which you invest and other events such as borrowers repaying their loans early.
For each lending market, interest is ordinarily received on a monthly basis. You cannot issue an instruction to withdraw funds that are on loan until those funds have been repaid or alternatively as may be the case with the 1 Month and 1 Year lending markets, replaced by other investors and cleared to your holding account.
Investors are only able to withdraw or reinvest funds at the end of the indicative term of the lending market in which they are invested, except where:. Lending institutions need to manage the risk of default by doing due diligence on borrowers and making sure they diversify their loan book.
It is also worthwhile looking to history to see how personal loans have fared particularly when the economy is no doing so well:. If RateSetter does not respond to your complaint then you should contact the Financial Ombudsman Service. They might be able to handle your complaint. After researching Companies House and their website, we found the following information about RateSetter:. The privacy of your data will be protected. You may want to speak with the loan company in person.
Take a look at their office location on a map. We all know that loan companies generally get a bad press. In some cases, they also offer a valuable service by providing funds to those who have been unable to get access to credit from a standard avenue, such as a bank or credit card.
Unfortunately, there are too many companies who put their profits before everything else and end up exploiting their vulnerable customers. There are still sharks out there, but the new regulations have made it much safer to use lending companies. If you are just not in a financial position to pay, your best course of action would be to contact one of the organisations we have listed above, and they will be able to provide the help and guidance you require.
CONC 5. CONC Debt Help , Loan Debt. Table of Contents show.
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