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Encash is the new name for YES-secure
YES-secure has now rebranded itself as Encash. The new logo andweb site design is certainly a major improvement. The tagline "Safe and Social" has been replaced with "the social way", perhaps partially in admission that the bad debt rates were not as one would have hoped. Despite the rebranding, the web address is still yes-secure.com and there is a new YES-secure logo at the bottom of the page so this is a bit confusing. Companies House have no record of Encash but the record for YES-secure.com Limited is still present. So perhaps the title should read "Is Encash the new name for YES-secure ?" as the page titles are "encash - YES-secure".
It seems that during the rebranding YES-secure - I mean Encash - I mean "Encash - YES-secure" - have tweaked their maximum lending rates again, and this has caused quite a stir on the YES-secure forum. The lender moneybuddy wrote:
Why have encash imposed this rate reduction on current listings!
The borrowers currently listing knew the previous rates and were quite willing to borrow at 21/23/25/27.5...whatever. What a bonus for them.
Lenders are again being treated with such disdain - without lender funds there will be no 'encash' and lenders are not going to lend with such abysmal late payer and default rates, if they can't make it up with risk based interest rates. At the end of the day lenders, at minimum need to be relatively assured (with modest risk) of recouping their capital outlay.
I thought YS were doing quite well with the previous structure. Changing the name, and colour scheme does not warrant an imposed rate reduction and certainly does not in any way eradicate the previous bad debts. Lenders are still suffering. If rates are not paying then lenders will flee. At worst, I will get ~3 - 4.5% but with a £85K (i think) deposit guarantee from any high street bank.
The lender paulnkaty replied:
Well i have not been on this discussion page for a while, so was not aware of coming on encash just now, and although i was hal expecting some stupid stunt from chandra and team on rates when encash arrived i did not think they would be this stupid!! the current new levels are going to stop many lenders particularly given the risk to reward ratio here, I see phltnr (who is one of the lenders who has until now been one of the lenders making large offers on loans) has started withdrawing cash, many more will follow, I can only support this action as many lenders state it is the lenders competition which needs to be the force behind lower rates offered, I propose lenders stick together on this and leave some money on the site for now but stop bidding on anything until encash get realistic!! the lenders should start the lending strike from now and for as long as it takes
Further to my last comment these new rates simply wont make money for any lenders regardless of Grades. The grading system has been a complete joke for months, people checking their credit rating before applying have a good score from every credit agency but then get a D or E grade here, many i believe get ungraded with this current system leading to many worthy borrowers being rejected, HOW encash think these new rates will be profitable after tax at such low rates is beyond me, for there to be any chance of profit lenders need to have a rating system that can be trusted which the current one clearly cant be trusted, with C D and E grades returning less defaults than A* IF this is not changed within 7 days i withdraw 20% every seven days from my account, others should stick together here as well, I will use it to buy premium bonds or fix rate bonds and save the risk and hassle
The lender leodensian replied:
I agree 100% - this is the last straw! I will wait until the underwiters fail to verify the 3 current loan offers I've made then I'll withdraw all but the shillings and pence in my account and I'll continue to withdraw cash as my 53 loan slices (minus the already known bad debts) are repayed. I shall not be making any more loan offers until the previous rates are re-instated. These new rates are just not worth the risk. I sincerely hope "Encash" will reconsider this ill devised move otherwise I can see many more lenders pulling out.
Perhaps the ghosts of YES-secure past have not been fully exorcised.