P2P lending

[_V_]

I sold all mine at the start of the panic, no losses, low exit fees. Before the stampede.

https://www.contractoruk.com/forums/...ml#post2740382

It was more obvious than a Boris lie that during a pandemic, people are not going to be paying their loans, and some kind of debt forgiveness was going to be implemented.

[jamesbrown]

It was bleeding obvious from the very beginning that P2P lending was a fairweather enterprise.

[d000hg]

I have a year's ISA in a P2P lending scheme. When this kicked off I set it to stop re-investing and return payments to the cash account, as a compromise between selling it all which incurs penalties.
I also realised our overall position was weighted a bit too far away from cash - stocks, P2P, property - and this will free up more cash in case of emergency. P2P is still about 20k:1k loans:cash but as it turns out mortgage holidays and being about to take out a mortgage just before it all turned bad has freed up a chunk more cash.
I'm going to leave the P2P converting back to cash though until we see what's what.

[northernladuk]

I got out of P2P when Lendy (formerly SavingsStream) started to look bad but still have money tried up with them waiting for the receivers to finish up.

I thought that news would start the slow decline of P2P's on any platform. Unfortunately it was too soon to see if it would die naturally but only needed an economy hiccup for the others to go down hill, let alone all this.

IMO it's the start of the end for a lot of these P2P platforms. People are going to have to start getting used to the idea they aren't going to see much of their money IMO. Great model when the world is going well, unsustainable when it's not.

[Old Greg]

“ Savers have put £830m into RateSetter accounts but now face a long wait if they want to withdraw. Before the crisis, RateSetter generally took just one day to return cash to investors seeking their money back, but they now take more than a month.

About £6bn is tied up in P2P platforms in the UK, but the crisis has been the biggest challenge the sector has faced. Another big player, Funding Circle, has told savers that while they will still receive interest, they can no longer withdraw their capital, and Zopa has stopped approving new loans in its riskier categories and raised costs for borrowers.”

UK's biggest peer-to-peer lender cuts rates 50% to prepare for loan defaults | Money | The Guardian

Loan defaults? Stop talking the country into a recession.

[AtW]

“ Savers have put £830m into RateSetter accounts but now face a long wait if they want to withdraw. Before the crisis, RateSetter generally took just one day to return cash to investors seeking their money back, but they now take more than a month.

About £6bn is tied up in P2P platforms in the UK, but the crisis has been the biggest challenge the sector has faced. Another big player, Funding Circle, has told savers that while they will still receive interest, they can no longer withdraw their capital, and Zopa has stopped approving new loans in its riskier categories and raised costs for borrowers.”

UK's biggest peer-to-peer lender cuts rates 50% to prepare for loan defaults | Money | The Guardian