Peer-to-peer lending sites: MSE guide discussion

DiggerUK

......or so they claim.
The best scams are not illegal, but they do rely on the gullible. Now they come in at two every minute.

Ponzi schemes aren't usually very sustainable. The setup eventually falls apart after:
(1) The operator takes the remaining investment money and runs.
(2) New investors become harder to find, meaning the flow of cash dies out.
(3) Too many current investors begin to pull out and request their returns.

1.So far not many p2p platforms have simply done a runner.
2.New investors are hard to find, but not impossible.
3.So far not a lot of investors are clamouring for the return of their cash.

P2P is a trap for whoever believes in magic returns, guaranteed returns, or just refuses to go into details about where their cash is going.

Fools with money aren't born every minute, but they are easy to find..._

Nardge

Personally I don't see how reproaching/slagging-off other thread commentators benefits anyone.

I've not found anyone here to be on a "moral high horse", rather they've helped me out as I have asked.
I'm very grateful they took the time out of their lives to do that, and I don't take it for granted.

The World is rife with REAL Trickery, trying to optimise one's income and that of others isn't inherently guilty of "Scam"

Probably it's said good-humouredly, but it wastes time and takes up space...

With Kind Regards

masonic

DiggerUK wrote: »

......or so they claim.
The best scams are not illegal, but they do rely on the gullible. Now they come in at two every minute.

Ponzi schemes aren't usually very sustainable. The setup eventually falls apart after:
(1) The operator takes the remaining investment money and runs.
(2) New investors become harder to find, meaning the flow of cash dies out.
(3) Too many current investors begin to pull out and request their returns.

1.So far not many p2p platforms have simply done a runner.
2.New investors are hard to find, but not impossible.
3.So far not a lot of investors are clamouring for the return of their cash.

P2P is a trap for whoever believes in magic returns, guaranteed returns, or just refuses to go into details about where their cash is going.

Fools with money aren't born every minute, but they are easy to find..._

All asset classes have examples of things that are too good to be true and people trying to get one over on the unwary. From Icelandic bank accounts with unreal rates of interest, to the darker corners of stockmarkets where prices are manipulated, to highly speculative assets such as cryptocurrencies and precious metals that generate massive amounts of hype and ramping from time to time. The key is to limit your exposure and tread carefully, which in some cases means avoiding some of these things entirely - but certainly not bet the farm on any one of them.

It may well be the case that the best days of P2P are over. It is hard to find many attractive options for new money. I can't deny reducing my exposure in recent months, but all in all I am not unhappy with the net returns I have made to date, whereas I have been unhappy with the performance of some of my other investments.

firestone

Not sure what happened but just reading the letters page of the London Times 1875 and apparently people think Investment Trusts & Building Societies are too good to be true and will not last

elephantrosie

i am late! just learnt that L has gone into admin!

shoi

Scrooge's_younger_brother wrote: »

If the FCA allowed P2P platforms to have 'skin in the game', the new regulations wouldn't be required. Valuations would be more accurate and late repayments would be more robustly progressed if platforms suffered first loss (and were only reimbursed for costs of recovery once all investors had been repaid in full).

https://youtu.be/3C6Utr027QY?t=3

shoi

fun4everyone wrote: »

Everyone involved in p2p is scamming in some way.

Sure some investors think (thought) that they could stick the bad loans on the unwary. But everyone? I think not

The-Joker

which is the lowest rate for £20K unsecured loan?

Fatbritabroad

About 3% last time I checked why?

CavendishWobble

I am looking at getting involved in P2P but cant help but wonder why some of the large institutions such as hSBC, Barclays, Halifax etc don't appear to be in this market. Is there a reason why or they feel it is too risky in the current climate?