A further warning about P2P…

Money Mage
Jan 31 · 2 min read
Mainstream P2P Emergency Funds are running dry. If you didn’t know: your capital is at risk.

Back in October I warned about P2P and the proliferation of affiliate links to dodgy P2P providers.

It was patently obvious that ‘returns of 30%+’ were too good to be true.

The collapses of FCA Regulated P2P lenders in the UK should have been enough of a warning sign. Let alone companies domiciled in Georgia.

Kuetzal vanished. Probably a scam. Now Envestio has vanished.

The blogs full of affiliate links vanished too. Torn down. noindexed.

robots.txt
Disallow: envestio-review.html
Disallow: kuetzal-review.html

Colour me surprised. Remember:

‘If it sounds too good to be true, it probably is

You can diversify away from P2P risk to a degree. Hold only a small portion of your portfolio. Hold in a number of P2P providers. Sure. However, the chances of getting stung by a ‘sounds too good to be true’ Ponzi scheme in the P2P field is high.

Here is another warning: Mainstream P2P is on the edge of a cliff.

The liquidity even in FCA Regulated P2P lenders in the UK is atrocious.

The Times reports Zopa and RateSetter emergency funds are running dry. These are two of the biggest P2P lenders in the UK.

Getting your money out if one of these providers collapses is going to take months. If you see any at all. Are you prepared for that eventuality?

Personally, I hold nothing in P2P.

This post is a Medium exclusive by moneymage

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Money Mage

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