RateSetter Provision Fund - Update

By Sam Griffiths on Friday 19 February 2016

Alternative Lending

Further to our article yesterday and comments from users of the independent forum and other RateSetter lenders, RateSetter have listened to the concerns raised and have just released this statement:

 

“We strive to be transparent as this builds trust and helps our market grow.  Therefore, earlier this week we proactively set out the Provision Fund’s investment policy, which included using a small proportion of its money on a temporary basis to facilitate the delivery of larger loans.  We believe that this is good for the development of the market, and beneficial for both borrowers and investors.  However, we highly value the views of our investor community and, having listened carefully to them, have decided to suspend the use of the Provision Fund for this purpose with immediate effect.  We have therefore also unwound the 0.6% of the Provision Fund balance that was being used this way.  We will update our investors with more information shortly.”

 

 

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