Peer-to-peer lending sites: MSE guide discussion

Rollinghome

More fun and games at Ratesetter: http://p2pindependentforum.com/thread/4324/scheduled-repayment-repaid

DiggerUK

DiggerUK wrote: »

There are concerns over 'shadow banking' in China. Peer to peer lending is the UK equivalent of 'shadow banking in the dark'.
Both work well when there is a credit shortage allied with a manufactured boom, but leave lenders cruising for a bruising when the tide turns.

MSE seems to be tacitly supporting this high risk lending, with the same silence it showed over Icelandic savings accounts.
..._

Now today you have some proof of how dangerous p2p really is..._
http://www.theguardian.com/world/2016/feb/01/nearly-a-million-scammed-in-chinese-online-ponzi-scheme

masonic

DiggerUK wrote: »

Now today you have some proof of how dangerous p2p really is..._

https://register.fca.org.uk/shpo_nosearchresultpage?search=Ezubao

Search results for "Ezubao"

There are no results on the Register for "Ezubao"

So yes, dealing with a P2P firm that is not on the FCA register is just as dangerous as dealing with any other unregulated financial institution. Fortunately, there are plenty of FCA regulated firms out there.

DiggerUK

masonic wrote: »

.........Fortunately, there are plenty of FCA regulated firms out there.

Unfortunately, the FCA protect and compensate nobody..._

Dan83

I have money tied up with Wellesley and also have a few hundred pound in funding circle.

To be fair, I've had no problems…… yet.

In hindsight I wouldn't bother with Wellesley, I got 4.1% for 18 months, I could of put that in the banks and got 5% and not taken any risk.

As for funding circle, this is done more as a past time then an investment. Although for the little money I have in there it's hardly worth the effort, I have £20 in a loan paying 10%, for the sake of £2, is it really worth it?

I can see the point if you have £1000's in there but for what some investors class as pocket money, then I'd say it's not really worth it.

When my Wellesley term runs out, I'll be withdrawing the money and the same when all my loans end in funding circle.

masonic

DiggerUK wrote: »

Unfortunately, the FCA protect and compensate nobody..._

I agree with "compensate"; "protect" is arguable. In any case, I'm not aware of any Ponzi schemes that have gained FCA authorisation. So that, in and of itself, offers consumers some element of protection.

Knowing the difference between regulated and unregulated investments is a pretty basic requirement of investing in any capacity.

TheTracker

DiggerUK wrote: »

Now today you have some proof of how dangerous p2p really is..._
http://www.theguardian.com/world/2016/feb/01/nearly-a-million-scammed-in-chinese-online-ponzi-scheme

And here with gold.

https://www.fbi.gov/news/stories/2016/january/fools-gold/fools-gold

Malthusian

masonic wrote: »

In any case, I'm not aware of any Ponzi schemes that have gained FCA authorisation.

EEA Life Settlements and Equitable Life spring immediately to mind. There was also the DotComUnity credit union which was allegedly run as a Ponzi scheme, although depositors were protected by the FSCS in that case.

FCA authorisation certainly offers some assurance but it is unwise to rely on it blindly.

masonic

Malthusian wrote: »

FCA authorisation certainly offers some assurance but it is unwise to rely on it blindly.

Agreed, but if you opt to put your money into an unregulated investment, then you are really asking for trouble. It certainly does not follow that if an unregulated investment product turns out to be a scam, that regulated products should be tarred with the same brush.

agent69

Rollinghome wrote: »

More fun and games at Ratesetter: http://p2pindependentforum.com/thread/4324/scheduled-repayment-repaid

What do you mean by more fun and games?

Ratesetter process lots of payments on the first day of the month. The post you have linked to is by somebody complaining that they hadn't had any repayments by 9am. A tad impatient don't you think?

As far as I am aware nearly all payment due on 1st were paid on 1st, with a small number ticking over into Tuesday morning.