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Tell the EU your view on peer-to-peer lending
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Former_MSE_Wendy
Posts: 929 Forumite
The European Commission wants to know what you think about peer-to-peer lending.
It's interested to know if current regulation provides the right balance between consumer protection and supporting market development.
Have you used it in the past or are you planning to lend money in this way?
Do you feel aware of the risks?
How well would you expect your investment to perform?
Tell it your views in their quick anonymous online survey or share your thoughts below.
If you haven’t already, join the forum to reply.
If you aren’t sure how it all works, read our [URL="http://"http://www.moneysavingexpert.com/site/forum-introduction-guide!"]Forum Intro Guide[/URL]
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It's interested to know if current regulation provides the right balance between consumer protection and supporting market development.
Have you used it in the past or are you planning to lend money in this way?
Do you feel aware of the risks?
How well would you expect your investment to perform?
Tell it your views in their quick anonymous online survey or share your thoughts below.
If you haven’t already, join the forum to reply.
If you aren’t sure how it all works, read our [URL="http://"http://www.moneysavingexpert.com/site/forum-introduction-guide!"]Forum Intro Guide[/URL]
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Comments
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I have looked in detail at these P2P scams. Like all moneylending companies they can only win. Their charges are over the top. They take no risks and if the borrower defaults the lender is the loser and in the end there is no protection at all, despite all the advertised safeguards. The only way I would consider one of these would be if the risk was shared by the organising company.0
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The main problem with P2P lending is that the level of due diligence done by the platform on the borrower is less than would be reasonable for the level of loan being sought. I have in the past lent through "funding circle" but have ceased making new loans through them since I discovered (after much effort - this is not made clear on their site) that their due diligence does not even involve having a face to face meeting with the borrower.0
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I have been lending with Zopa for the last two years and have had a good experience. Interest rates are good, their safeguard fund protects expected bad debts and contrary to one of the posts above, they do vet their borrowers extremely well. I am, however, unsure as to whether this involves a face to face meeting but would this make any difference? The borrower's track record is what counts.0
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Ideally they should introduce FSA protection, as with your bank account, so that if the provider goes bust and your money disappears with it you get back the first £85K of losses. Then it might be a more attractive proposition.0
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It's going to end in tears imo. The UK got away relatively unscathed in the financial crisis, if we ever have a crisis that results in high unemployment I think P2P lenders are going to be suddenly aware of the risk they're actually exposed to.Faith, hope, charity, these three; but the greatest of these is charity.0
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Ideally they should introduce FSA protection, as with your bank account, so that if the provider goes bust and your money disappears with it you get back the first £85K of losses. Then it might be a more attractive proposition.
There is already a risk free option where you deposit money and it gets lent out or invested in assets and you get it back plus some interest, with a guarantee on your first £85k of losses. As you've identified, it's called a bank account.0 -
bowlhead99 wrote: »There is already a risk free option where you deposit money and it gets lent out or invested in assets and you get it back plus some interest, with a guarantee on your first £85k of losses. As you've identified, it's called a bank account.
Don't think that is what the OP was referring to though.0 -
The original post was with reference to peer to peer lending; I don't think this includes normal bank accounts.0
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No excrement, Mr Holmes.0
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