Quakle website to shutdown

November 25th, 2011

The Quakle website was offline for a while this month, and it went unnoticed until today when MRC_London posted on the Zopa forum that Quake had posted further information.  As you can see from the information below the website will be offline from the end of this month, so we thought we would repost the information here for future reference.

Dear Quakle Members,

We are sorry to tell you that we are going to close the website by the end of November, after new loan applications were stopped several months ago. This follows last month’s announcement and will also cover a few questions that we have anticipated. The thread remains open for further questions for as long as the website is active.

This decision was made after considering the difficulties to seek expansion funds in a currently crowded market and to find potential buyers with the proper skills and authorisations for a loan book that is fairly small.

In order to make this as less painful as possible, we have spent the past couple of months to set up the tools that would enable the transactions to be processed while the Quakle website is off.

Payments to the lenders’ bank account will be made every first Monday of the month for the money that was collected in the past whole month. We recommend lenders to make sure that their bank account details are up-to-date now because changing your bank account information once the website is closed may result in significant delays in getting your money back.

Late payer accounts will continue to be chased by the debt collection agency - CCSG – and when some money is recovered via the collection accounts, it will be processed in the same way as the other payments.

We managed to secure a server facility that will be used to maintain contact with you via email. The address to be used is the current contact address [removed by P2P Money] and will be open for queries and questions for existing members only. We kindly ask you not to communicate this address to third parties. When requesting details about a particular loan, we ask you to provide the following information :

- your ID number located in ‘My Account’ or your screen name,

- the screen name of the borrower you are talking about or the loan ID,

- the amount of money you have lent in total to this person, i.e. the money owed to you before any repayment from the borrower.

This will also enable us to send details of your loan book every month in your email box. We provide this information so that you are not ‘blind’ and have a good idea of the money that is owed to you, however, the exact amount may be different because of the costs from the debt collectors. Unfortunately, with this system in place, we couldn’t get an easy way to take them into consideration.

I will also personally review the debt collection costs from time to time and make sure they are kept to a minimum.

Kind Regards,Josselin, Quakle Team

This is sad news indeed, but I suspect that while Quakle is the first P2P provider that is closing, it won't be the last.  However on a more positive note the major players are continuing to show a very large year-on-year growth.

Earn £25 with Funding Circle

November 21st, 2011
Funding Circle

There is just under 6 weeks left in order to sign-up with Funding Circle in order to qualify for their £25 gift voucher, if you have lent out £1000 or more by 31st January 2012*.  That is an automatic return of approximately 2.5%, on top of the good rates available over at Funding Circle.  A £25 gift voucher would be a good start to the year.

* Terms and conditions apply.

YES-secure to rebrand itself

November 20th, 2011

After my recent post on YES-secure suggesting they had gone quiet, today they have announced some changes and that they are looking to rebrand themselves at the start of January 2012.  Here is the full post on YES-secure.

1) We are working on launching business lending and are currently evaluating operation our BETA business lending platform. We will focus on marketing this new service once we have also completed our current rebranding process by the end of this year.
2) We added an application fee to encourage borrowers to make more complete and serious applications. We will now revise this application fee to be nominal £5 for consumers and £50 for businesses.
3) We are completing a new branding and reorganisation of our website which we expect to launch from the beginning of January 2012. We would welcome our members feedback on changes in website organisation under the topic "Website rebranding suggestions".
4) We are continuing to learn and improve our internal processes including underwriting, fraud mitigation and debt collection.
5) YES-secure is fully committed to be the first P2P Lending Platform that supports and encourages both Consumer and Business Lending.

Dr Chandra Patni

This announcement also confirms that YES-secure are reducing their £20 non-refundable application fee to £5, and this may after I posted an few links on their forum suggesting they may not be complaint with the law.  It is also interesting they are looking to improve their "fraud mitigation" which itself raises some more questions.

YES-secure go quiet

November 18th, 2011

There has been a lot of comment on the YES-secure forum that (ironically) there has been no communication from YES-secure themselves.  Below is a posting from MRC_London on the YES-secure forum that sums up the situation:

It is now very nearly six weeks [since my last posting on this topic]. In that time just a single loan has been disbursed (listing expiry 13th Oct) with the previous two disbursements having listing expiry dates of 2nd Oct and 29th Aug respectively. (Just to reinforce the point that is just 2 loan approvals from all the Sept, Oct , & early Nov listings)

There has however been a steady (although not spectacular) stream of £20's being supplied to YS for the privilege, in most (?) cases, of being denied a verified listing.

As things stand this evening, we have the pitifully small collection of 2 live listings, 1 expired listing awaiting borrower acceptance, and 3 listings awaiting underwriter approval. With no listings awaiting verification prior to go live.

On this evidence, together with the lack of recent communiqués from YS commenting on strategic direction, I stand by my opinion that we are witnessing a "soft closing" of the platform.


After the recent demise of Quakle there is understandable concern surrounding the fate of YES-secure after lenders started posting that they had experienced higher than expected bad debts so early on in the loan.

P2P Money has attempted to contact YES-secure to ask about bad debts, and we are still awaiting a response.  We hope the situation can be resolved quickly and we await a positive response from YES-secure.

Predicted vs. actual bad debts

November 17th, 2011

Most peer-lenders give predictions on what bad debt a lender should expect either annually or over the lifetime of a loan.  Unfortunately the occurence of a bad debt isn't spread uniformly over the period of a loan.  For several years Zopa was reporting 0.05% lifetime bad debt until the credit crunch hit.

P2P Money has analysed the major peer-lenders and published an analysis of actual bad debt against predicted bad debt, along with a figure indicating how well they performed to estimates.  This will be tweaked over time as more data becomes available.

In summary, all of the major peer-lenders that have published data have performed better than their estimates.  This is good news, but as some of these lenders are expanding quickly, some loans won't have been around long enough to go bad.  I will let readers draw their own conclusion on any companies that haven't provided any data.