Zopa exits peer-to-peer lending to focus on banking
The Guardian - Peer-to-peer lending
by Rupert Jones
2y ago
Company tells its 60,000 existing P2P investors it will be handing them back their money It once hoped to make banks a thing of the past by cutting them out of the equation, but now Zopa is shutting down its “peer-to-peer” (P2P) lending arm after 16 years – so it can concentrate on being a bank. The company has contacted its 60,000 existing P2P investors to let them know that it will be handing them back their money – leaving them to find a new home for their cash at a time of ultra-low savings rates ..read more
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RateSetter savers claim investments are being sold off 'on the cheap'
The Guardian - Peer-to-peer lending
by Rupert Jones
3y ago
Small investors say the ‘big boys are making the money’ as Metro Bank takes over their loans Savers with money in one of the UK’s biggest peer-to-peer (P2P) websites are crying foul, saying their investments are effectively being sold off “on the cheap” to a bank that will pocket the returns they would have enjoyed. The dispute concerns RateSetter, a P2P platform where those with savings lend cash to other individuals in return for an agreed rate of interest. Metro Bank bought RateSetter last year and is expected to take over its book of almost £400m in loans in a separate deal. Peer-to-peer ..read more
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Peer-to-peer lending: ‘I’m 19,050th in the queue to get my savings back’
The Guardian - Peer-to-peer lending
by Rupert Jones
3y ago
A surge of requests to withdraw funds amid the Covid pandemic has led to a huge backlog Coronavirus – latest updates See all our coronavirus coverage A saver who has been trying to get her money out of the UK’s biggest “peer-to-peer” (P2P) website since August has been told her request is 19,050th in the queue for withdrawals. Michelle Johnson* signed up with RateSetter in 2019 and invested a total of £1,000. After changes at the firm in the summer, she asked to withdraw her money – but months later she is still trying to get hold of the bulk of her cash. Peer-to-peer (P2P) websites bypass t ..read more
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UK's biggest peer-to-peer lender cuts rates 50% to prepare for loan defaults
The Guardian - Peer-to-peer lending
by Patrick Collinson
4y ago
RateSetter borrowers seek payment deferrals because of coronavirus crisis Coronavirus – latest updates See all our coronavirus coverage The UK’s biggest “peer-to-peer” (P2P) lender, RateSetter, has slashed the interest rates it offers to savers by half as it prepares for a wave of loan defaults in the wake of the coronavirus crisis. Savers on the RateSetter platform – who are technically lenders matched up over the internet to borrowers – have been told their interest rates will be reduced by 50% until the end of 2020. The Max 4% account will be cut to 2%, while the Access account will drop ..read more
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Peer-to-peer lender Funding Secure goes into administration
The Guardian - Peer-to-peer lending
by Kalyeena Makortoff Banking correspondent
4y ago
Pawnbroker’s 3,500 investors waiting to hear how much of £80m in loans will be recovered Peer-to-peer pawnbroker Funding Secure has collapsed, leaving thousands of investors at risk of major losses. The Buckinghamshire-based company ran into trouble after an increased number of borrowers struggled to pay back their loans. Funding Secure also became embroiled in a fraud lawsuit involving the art dealer Matthew Green, who the lender claimed owed it about £3m. Related: Too hot to handle? Don’t be burned on P2P or mini-bond loans ..read more
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Peer-to-peer lender Funding Circle warns over revenue amid Brexit fears
The Guardian - Peer-to-peer lending
by Jasper Jolly
5y ago
Platform reins in riskier loans as confidence falls among small businessesShares in Funding Circle slumped by 29% after the peer-to-peer lending platform slashed its forecasts for revenue growth in the face of economic uncertainty caused by Brexit.Funding Circle said it was reining in riskier loans, cutting its expectations of revenue growth for 2019 from 40% to 20%. Peer-to-peer lenders work by matching small and medium-sized businesses seeking loans with individual investors willing to lend for a return. However, financial institutions now fund the majority of the Funding Circle’s loans ..read more
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Too hot to handle? Don’t be burned on P2P or mini-bond loans
The Guardian - Peer-to-peer lending
by Rupert Jones
5y ago
The collapse of LC&F shows that investments boasting high returns also come with big risksTread carefully if you’re thinking about investing in peer-to-peer lending or “mini-bonds”– the risks are high and you could lose your money. That was the message this week from the financial watchdog, which issued a robust warning to consumers days before the Isa deadline.The Financial Conduct Authority’s comments follow the collapse of mini-bond firm London Capital & Finance (LC&F), whose 11,600 investors have been warned to expect as little as 20% of their money back. They had invested a to ..read more
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