Managing Your Money 

How to be savvy with peer-to-peer lending

How to be savvy with peer-to-peer lending

There are some concerns circulating around peer-to-peer (P2P) lending as an investment. The sector was subjected to an investigation by the financial services regulator, the Financial Conduct Authority (FCA), whose report did not paint the prettiest of pictures. The FCA is concerned that many P2P investors do not fully understand the sector, nor how important it is to choose the right platform. Some platforms price loan interest rates on investors' behalf, which means you're at the whim of someone else's risk management protocols. If you choose a P2P platform that gets this wrong, then you might be taking more risk than you initially intended.

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