RateSetter prepares investors for P2P account closures

RateSetter is just weeks away from officially closing the peer-to-peer lending side of its business and investors are being urged to get prepared for the changes.

Metro Bank has been funding all new consumer lending on the RateSetter platform following its acquisition of the peer-to-peer lender in September 2020 and it was announced last month that it will also purchase of its legacy loanbook on 2 April.

P2P accounts will be closed from 2 April and all invested money will be returned to investor holding accounts.

Money left in the provision fund will be included in the P2P consumer loan portfolio sale.

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

RateSetter has written to investors to remind 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 to.

“The investing side of RateSetter will close in four weeks’ time on 2 April 2021 and you will receive your money in full,” the note to investors said.

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

The tax year ends on 5 April so anyone receiving IFISA funds from 2 April will only have a few days to make a transfer.

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

Read more: What does the latest Metro Bank deal mean for RateSetter investors

RateSetter has also said it will stop investment withdrawals from 26 March in preparation for Metro Bank’s takeover of its remaining consumer loan portfolio.

Auto-invest instructions from a bank account to RateSetter will be cancelled from 26 March and investment releases cannot be requested after the same date.

The usual early release fee will apply until then but there is no charge once all the money is repaid as part of Metro Bank’s portfolio purchase.