Funding Circle start sending out £25 gift vouchers

December 17th, 2011
Funding Circle

I've been reliably told that Funding Circle have started sending out the £25 gift vouchers for new users that have successfully lent out £2000 or more.  New lenders still have 2 weeks to sign up and lend £2000 by 31st January 2012, and they can do this via the new P2P cashback microsite.

P2P cashback site launched

December 14th, 2011
P2P Money

P2P Money have launched a cashback site that will allow new users to be rewarded for using peer-lending.  Currently Funding Circle and Zopa are featuring with rewards of £25 gift vouchers.  The Funding Circle offer will expire at the end of December so act quickly !

Quakle post-mortem

December 8th, 2011
Quakle

There have been articles over the last few days in the Daily Mail and This is Money entilted "Savings fears as loan firm Quakle goes bust" and today in the FT entilted "Peer-to-peer loans company closes" about the demise of Quakle.  This was bound to cause some waves, but I believe it is important to keep this in perspective.  Quakle itself made less than 0.1% of all peer-loans so it was tiny in comparison to the market leaders Zopa, Funding Circle and RateSetter.

I remember reading about Quakle on the Zopa forum and after looking at the model I decided it was not for me.  There appeared to be less checks performed on borrowers than would otherwise happen elsewhere.  Less than a year after launch Quakle closed to new business.  However this isn't the same as a bank going out of business as the contracts are between the borrower and the lender, not the borrower and the company, and are still legally enforceable.  Quakle's collection agency are still chasing payments, and further action can and will be taken against borrowers who don't pay, just like any bank.

The peer-lending industry remains strong and is continuing to grow.  There have already been announcements that there will be more new entrants to the peer-lending industry next year.  Lets hope that these new entrants will join the P2P Finance Association which requires all companies to ensure high minimum standards of protection for consumers.

Danesfield make changes

December 5th, 2011
Danesfield

Danesfield have also announced some changes to their peer-lending platform today.  Interestingly - excuse the pun - they will now be paying 1.75% AER on unlent funds.

I am writing to advise you of some major changes at Danesfield this week which will affect the way your funds are currently lent out, on our social lending forum.

We at Danesfield Finance (DFAI) have been listening to our members and in order that we may offer a better service to people looking to lend money through the social lending platform we have taken the decision to re vamp our web site.

From Wednesday 7th December any outstanding loan applications will be cancelled, this will release funds back into your lending accounts.

You will then have to log into your account and re allocate how you would like your funds to be distributed.

Our changes, we feel will help to get your funds lent out a lot faster, hence pay you the return you are looking for a lot quicker, we have also added another service for our lenders, which is, we will pay you interest of 1.75% on any un allocated funds in your lending account.

I am sorry about the inconvenience that this will cause, but we feel our new approach will safeguard both Lenders and Borrowers alike.

It is good to hear that their web site will be updated, as it is still showing data from April 2011.

Zopa tweaks borrower fees again

December 5th, 2011
Zopa

Zopa has taken a further decisive step to reduce fees again today, reducing the fees for A* borrowers wanting to take out a loan for £7500 or more over 36 months to just £10.  Last week the fees for a comparable loan would have been £130, so this is a huge reduction.