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One of the most annoying things - and one of the reasons why P2P Money exists today - is that information on peer-lending in the press can at best misleading, and at worse wrong. Peer-lending is - to most people - an unknown concept which needs further explanation. It can't be compared directly with classic savings, but unfortunately it is, giving rise to further confusions.
Peer-lending isn't risk free, and some lenders have experienced negative returns, however that was either due to poor diversification (spreading your money around) or problems with the peer-lender itself. Unfortunately negative stories sometimes carry more weight than positive ones.
I would strongly encourage potential lenders to review the lending rate comparison which shows the rate the lender can expect to get after fees, bad debts and taxation. I have personally written reviews on the major peer-lenders in the UK and published actual bad debt information, so potential lenders can see how a company is performing to their estimates. P2P Money won't publish data we don't believe is correct or reliable.