Setter investors are furious as the “technical problem” is delaying withdrawals after account closure

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    According to the Ratesetter, payments should be received on Thursday

    If you’ve tried to withdraw money and it hasn’t been received, Ratesetter has told us that the problem should be resolved and payments are imminent – no later than the end of Thursday, April 8th. If it doesn’t and you still have to wait, let us know at news@moneysavingexpert.com.

    Once cash has been deposited into an inventory account, no more interest is earned. So if you had to wait several days for your money, you could have lost interest in the meantime. If we asked Guessetters if customers are being compensated for lost interest or inconvenience, it would only tell us that returning money as soon as possible is the priority.

    If you had money in a Ratesetter investor account and have not yet withdrawn it, there is no time limit for it, according to the Ratesetter – your funds will be stored in a third-party account for the time being. However, since it does not earn interest there, it is best to take the money out as soon as possible.

    A spokesperson for Ratesetter said, “We apologize to our investors for the delay this issue has caused with our payment processor. However, we are very pleased that the problem has now been resolved and the money is being processed. “

    Peer-to-peer companies operate at financial matchmakers – but not without risk

    Peer-to-peer lending firms like Ratesetter act as a financial matchmaker, which means investors can use cash to lend to individuals and businesses. Investors can sometimes get higher returns than with savings accounts, but they have to take a risk with their money. We have always warned that peer-to-peer investing does not come with guarantees of security, as is the case with savings. Please see our Peer-to-Peer Loan Guide for more information.

    Crucially, the peer-to-peer model is also a new sector with many lenders that didn’t exist in the 2008 recession, so the entire sector has not yet been tested by a financial crisis.

    The repercussions of the coronavirus pandemic had already led Ratetter to cut interest rates for investors – it halved the interest they paid investors in May 2020, and the other half went into a “retirement fund” that gave investors priority Should protect losses. Interest rates did not normalize until January 28, 2021, just before Ratesetter announced that all investor accounts would be closed after the Metro Bank purchase.



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