Post by Ace on Oct 5, 2019 14:44:05 GMT
Hi Loanpad (or anyone who uses this strategy),
The simple question is: is it possible/legitimate to set up a number of concurrent rolling transfers on Loanpad to arrange for earlier access to ones funds in the premium account?
I'm aware that this strategy is widely used in the AC access accounts and was wondering if the same strategy can be used on Loanpad. I've read the Ts&Cs and couldn't see why this wouldn't be possible. I would also be interested to know whether Loanpad had considered this and whether they are happy for their lenders to use this strategy, or whether they would look to prevent this in future (perhaps by limiting the number of concurrent transfers), or have they have already prevented this?
For those not familiar with this technique it's one that allows regular early access to a portion of ones funds while still earning the higher rate for a notice account and also avoid an early access charge. For example, someone with £10k in a Loanpad premium account, which has 60 days notice, might set up a transfer of £2k to their cash account every 12 days. If they find that they don't need the cash then they cancel each transfer just before it takes place and set up a new one for 60 days time, thus ensuring that they have access to one fifth of their balance every 12 days without fees.
Obviously the word "ensure" above needs to be taken with a pinch of salt, as no access to funds in a P2P investment can ever be guaranteed.
The simple question is: is it possible/legitimate to set up a number of concurrent rolling transfers on Loanpad to arrange for earlier access to ones funds in the premium account?
I'm aware that this strategy is widely used in the AC access accounts and was wondering if the same strategy can be used on Loanpad. I've read the Ts&Cs and couldn't see why this wouldn't be possible. I would also be interested to know whether Loanpad had considered this and whether they are happy for their lenders to use this strategy, or whether they would look to prevent this in future (perhaps by limiting the number of concurrent transfers), or have they have already prevented this?
For those not familiar with this technique it's one that allows regular early access to a portion of ones funds while still earning the higher rate for a notice account and also avoid an early access charge. For example, someone with £10k in a Loanpad premium account, which has 60 days notice, might set up a transfer of £2k to their cash account every 12 days. If they find that they don't need the cash then they cancel each transfer just before it takes place and set up a new one for 60 days time, thus ensuring that they have access to one fifth of their balance every 12 days without fees.
Obviously the word "ensure" above needs to be taken with a pinch of salt, as no access to funds in a P2P investment can ever be guaranteed.
