P2PFA reacts to comments made by Adair Turner

Further to comments made this morning on Radio 4’s Today programme about the peer-to-peer lending industry, Christine Farnish, independent chair of the P2PFA said:

“Anyone who has followed our industry closely will see that this morning’s comments fly in the face of the evidence. “Since the industry began, default on loans are low, measuring between 2-3 per cent. We only lend to creditworthy consumers and established small and medium sized enterprises. Strict credit underwriting rules apply to all our members and this should not be confused with higher risk forms of crowdfunding or lending to sub-prime customers.”

“All members of the P2PFA operate with high standards of transparency and business conduct. This includes publishing their full loan books on their websites and providing clear information on all fees and charges to both investors and borrowers. I would challenge anyone to find this level of transparency in any other part of the financial services market.”

“Our most recent figures show that the P2PFA has collectively lent more than £4.4 billion as an industry. This is built on strong operating principles as an industry and our ability to challenge the existing ways of lending and borrowing.”