Dan Smith

Aug 10, 2017

I would highly recommend avoiding this platform.  I have 6 relatively new investments with RS that are too early to evaluate.  It is not the investments that are the problem, it is RS total lack of internal controls, updates and overall communication.

I experienced two major issues in my two plus months on RS.  The most recent was a major investment where RS debited my account TWO MONTHS prior to the deal closing and prior to their accrual date. The deal still isn't closed.  I call RS 3 or 4 times over this two month period and several times received no return phone call.  On the one occasion that someone returned the call, they stated that closing had been delayed and had no further information.  I finally called and indicated that I wanted out of the investment.  At that point, RS acknowledged debiting my (and all other investor) accounts PRIOR to having a firm closing date which they acknowledged was against their own policy.  Despite verbally acknowledging that RS had erred in debiting investor accounts, I received an e-mail update from the investment manager stating that the issue was with the lender not closing timely.  I requested compensation from RS due to their early debiting error.  While they again acknowledged their error, they refused compensation.  RS is allowing me out of the deal, but requires two different forms be signed multiple days apart and indicated it would take up to two weeks to get the erroneously debited investment back.

The other major issue was at the beginning of the process.  RS was unable to debit my bank account via ACH for my first investment due to a bad account number.  While I certainly bear resposibility for missing a digit in my account number, there are two issues with RS internal controls that surfaced.  First, RS does NOT require you to enter your bank account number twice for verification like every other financial institution I've ever dealt with.  Second, in resolving the issue, RS had one of their IT personnel access my complete banking information and confirm it back to me.  Clearly, banking information with RS is NOT secure.

Some of this could be growing pains, but after two significant issues within about two months and RS poor handling of both issues, I have decided to not use RS in the future.