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Fruitful stop making P2P loans
Fruitful, who launched earlier this year, are have stopped taking new funds. Existing lenders have been refunded 75% of their capital with the remaining 25% to follow. The company will be focusing on servicing "a small number of long term investors" rather than "retail investors".
Here is the statement on their website:
First, thank you for asking! But no we’re not going bust, we’re changing direction.
Fruitful will continue to be a marketplace for borrowing and lending.
The thing that’s changing is the type of investor peers. Instead of individual retail investors, we’ll be partnering with a small number of long term investors who want long term and very low risk investments. Typically these investments will pay very low yields which aren’t attractive to individual retail investors.
So by enabling new types of investors to lend directly to borrowers, we’ll be leveling the playing field so people like you can make huge savings on the money you borrow.
Find out more about our unbeatable rates for Buy-to-Let mortgage borrowers.
Fruitful have also proved the answers to frequently asked questions:
Why can’t I access the last bit of my money now?
The remainder of your money is out on loan.
Since we’re not accepting new investments, the secondary marketplace (that enabled the withdrawal feature) has been closed off — meaning you cannot sell your loan parts off early.
You’ll continue to earn interest on the remaining balance of your Fruitful account.
Once these amounts have been settled, you’ll receive your remaining balance, plus the interest you’ve earned and you’ll be able to see this on your Fruitful dashboard.
How long will the process take?
We’re working to get the outstanding loan balances fully remortgaged (and repaid to you) within the next 12 months. Of course, we’ll be keeping you updated every step of the way.
Have I lost any of my money?
As of writing (23rd October, 2015), we’re still working to offload the remaining mortgage balances on loan. As a bonus, you’ll continue to earn interest on these loans each month until they are settled.
Fruitful is being discussed on the P2P Independent Forum.