Peer to Peer Lending-a warning

Is Peer to Peer lending the next disaster waiting to happen?

Such lending is not covered by the Financial Compensation Scheme which applies to bank savings to a max of £85,000.

Presumably,a lender lends initally to the organisation who then in turns lends to individual borrowers and so the contract is between organisation and lender.If the organisation employees either bankrupt or steal the funds lenders only rank as unsecured creditors?

Is an average 8% interest rate adequate compensation for taking such a risk.I would have expected 8% for secured lending.

Peer to Peer organisations have gone bust in the past.

Only the future will prove if this analogy is correct.

Comments
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Not with ZOPA

Paul Scholes |
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I believe one needs a

uktaxpal |

7%

Red Leader |
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More info

Paul Scholes |
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I wasnt sure about the CCL

uktaxpal |

Not sure you're getting this uktaxpal

Paul Scholes |
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Substance over form-in

uktaxpal |

scraping the barrel

Paul Scholes |
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During a tel con with Zopa I

uktaxpal |

A return to the old days...

duncanphilpstate |

Interesting debate

accountsdragon |
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Thanks accountsdragon

Paul Scholes |
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.

ireallyshouldknowthisbut |

Paid gross

Paul Scholes |
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.

ireallyshouldknowthisbut |

If HMRC staff can engineer

uktaxpal |

More Peer to Peer

aalogan |
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An alternative to Zopa

BryanS1958 |

well done on 7% and a useful service to business

carnmores |
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Alternatives

Paul Scholes |
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Web-based

Tim Robinson |
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the gainsayers

carnmores |
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If it walks like a duck

uktaxpal |

uktaxpal, are you in business

Fred Smith |

There is no DSCS protection.

uktaxpal |

If it walks like a duck?

Huw Williams |

is uktaxpal

carnmores |
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Investment Opportunity

mdsevers |

Investment Opportunity

mdsevers |

@mdservers

Paul Scholes |
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