Zopa reduce borrower fee yet again

December 29th, 2011

Zopa have now reduced the borrower fee to £0 for all A* 36 month loans £7500 and over.  This probably to counteract the predictable rise in lending rates over the festive period.  Rates rise as borrower requests are not underwritten due to the longer weekends leading to a reduction in available funds in the markets.

Borrowers should act quickly to take advantage of these before rates rise in the new year due to an increase in demand.  P2P Money are still running a £25 cashback offer on Zopa loans.

Merry Christmas

December 24th, 2011

Merry Christmas from P2P Money.  We also wish one and all a prosperous new year.

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

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.