8th Carnival of P2P Lending: All-about-me edition

by Rocket Finance

Lending Club made some waves in the world of P2P lending last week with an announcement that they were suspending all new loans in order to give them time to “started a process to register, with the appropriate securities authorities, promissory notes that may be offered and sold to lenders through our site in the future”. I personally do not know what to make of this announcement. I was enjoying the Lending Club referral bonuses and all of the loans that I have made through Lending Club are current. We will have to wait and see. Until then, stop by and read Dough Roller’s assessment of the situation. DR has a fairly optimistic view of the news.

Lazy Man and Money is coming down on the negative side of the ledger with his post that succinctly states, “Lending Club is dead”. I hope he is wrong.

Chief Family Officer is glad that she waited to create a Lending Club account and has a pretty pessimistic view of Lending Club’s announcement. I just think that she might have just missed out on a great bonus. . .

An article about the recent downturn in the number of loans at Prosper was posted at the Prosperous Land Blog. It is safe to say that with the recent news from Lending Club, the trend at Prosper will be temporary. I immediately opened an account with Prosper and plan to make a loan or two in the next week.

Rate Ladder uses a graph to demonstrate the riskiness of making a loan to low credit grade borrowers. There is great potential return in making such loans, but I think the risk outweighs the benefits. I avoid borrowers with low credit grades the extra interest is not worth the extra risk – but you can make up your own mind.

Doug Fuller has an interesting post about upgrades to collections procedures at Prosper. His post appears on the Prosper blog itself and you can read about the positive steps that Prosper is making to insure your loans. What I really want is for the Prosper blog to post about the latest news from their competitor. . . PLR obtained a somewhat neutral statement from Prosper, but I prefer something with a little more punch. I want to see some fur fly or a take-over attempt or two. . . but that’s just me.

In an attempt to change the subject, Prosper Lending Review posts about an new P2P start-up company that is targeting college expenses. I work with college students and since they are notorious for their poor handling of debt. I do not plan to invest with Fynanz.

Personal Loan Portfolio rants about p2p borrowers who pay back their loan in a month or less. Why did they take out the loan in the first place? While you are reading the article, be sure to vote on the poll: Will Lending Club survive the quiet period?

Thicken My Wallet further dissects the Lending Club conundrum by surmising that Lending Club will return, but with greater regulation and overhead. I just hope that it does not cut into my profits.

So, in light of the latest news from Lending Club, I plan to shift operations to Prosper although my investment will be cautious. I will only use money that I can afford to ignore for a while.

What will you do with the latest news from the P2P lending world?

Business & Personal Loans. Great Rates. Prosper.

Photo by Rich Seattle.

  1. 12 Responses to “8th Carnival of P2P Lending: All-about-me edition”

  2. By DebtKid on Apr 18, 2008 | Reply

    Rocket! I’ll throw my two cents into the ring on Lending Club. I think people initially missed the boat on what’s happening.


  3. By Chief Family Officer on Apr 18, 2008 | Reply

    Sure, I might have missed out on a bonus – but honestly, I hate the lack of transparency that LC has had throughout this process, which just gives me the feeling that maybe LC isn’t a company I want to be involved with. DK has convinced me that it *might* be the only way for LC to do whatever they’re doing, but I still have my doubts.

    Thanks for hosting!

  4. By rocketc on Apr 18, 2008 | Reply

    Thanks, DK, I don’t usually like links in my comments, but yours is particularly relevant.

  5. By Tom on Apr 18, 2008 | Reply

    Rocket, great collection of articles. Thanks for hosting!

  6. By Lazy Man and Money on Apr 19, 2008 | Reply

    Yes, thanks for hosting – very well done indeed.

  7. By Brett @ Personal Loan Portfolio on Apr 19, 2008 | Reply

    Thanks for posting the carnival.

    I certainly did not intend for my post to be considered a “rant.” As I mentioned, early payments are understandable, but paybacks in one month or less are ridiculous and should be punished with a fee. I would also like to point out to people who are thinking about taking out a loan for one month that they are likely wasting their own time and money in addition to lenders’.

    If you are interested in more articles on the Lending Club quiet period I compiled lots of links here and here.

  8. By rocketc on Apr 19, 2008 | Reply

    Calling it a “rant” might be extreme, but I thought more people would read it that way. 🙂

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