RateSetter Prepares Investors for P2P Account Closure

RateSetter is just weeks away from officially closing the peer-to-peer lending portion of its business and investors are urged to prepare for the changes.

Metro Bank has funded all new consumer loans on the RateSetter platform as a result of its acquisition of the peer-to-peer lender in September 2020 and it was announced last month that it will also be purchasing its inherited loan book April 2nd.

P2P accounts will be closed from April 2 and all money invested will be returned to investors’ deposit accounts.

The money remaining in the reserve fund will be included in the sale of the P2P consumer loan portfolio.

The platform already has sold its remaining home loan portfolio to Shawbrook Bank.

RateSetter has written to investors reminding them to check if their bank details are correct and for its Innovative Finance ISA (IFISA) users to consider where they may want to transfer their funds.

“The investment portion of RateSetter will close in four weeks on April 2, 2021 and you will receive all of your money,” the note told investors.

“Between April 2 and April 6, your money will be returned to your deposit account, from where you can withdraw it to your bank account.

With the fiscal year ending April 5, anyone receiving IFISA funds from April 2 will only have a few days to complete a transfer.

Money held in the ISA deposit account will still benefit from the tax envelope but will not earn interest.

RateSetter also announced that it will stop withdrawals of investments from March 26 in preparation for Metro Bank’s repurchase of its remaining consumer loan portfolio.

Automatic investment instructions from a bank account to RateSetter will be canceled from March 26 and investment authorizations cannot be requested after the same date.

The usual early unlock fees will apply until then, but there is no charge once all the money is paid back as part of the Metro Bank wallet purchase.