Lending Club Troubles Show Why P2P Doesn’t Work

Comments (4)

  1. John says:

    thanks, very informative


  2. Jim says:

    Don’t you know what the credit rating of the people are that you are making loans to? You can give loans to people with high credit ratings which lowers your return. Or you can mix in a few people with lower credit scores to boost your returns.

    Loans to people with lower credit scores you’d expect to see more defaults especially during economic downturns. But they have historic data on that and you can factor it in.

    Is the author saying that LendingClub is lying about the credit scores/loan quality?


  3. james Young says:

    The short answer is YES


  4. lotuscat says:

    In the UK P2P is better regulated than in the US of A


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