|
Post by nardge on May 24, 2024 9:54:23 GMT
Good morning folks.
Having been in P2P for a while, I'm currently looking to invest with Unbolted. However, on signing up, it mentioned words to the effect of the "risks of litigation, fraud, and insurance costs". I don't recall these being mentioned when signing up to other previous P2P platforms.
Could someone briefly shed a light on each of these?
Can a borrower take the lender(s) to court and sue them such that they a) lose their capital or worse still b) lose their own wealth outside of Unbolted? Or is it Unbolted that would be taken to court and sued?
I am already familiar with the other risks - lack of liquidity, borrower's defaulting, platforms going bust etc
Thanking you in advance.
With Kind Regards.
|
|
|
Post by Badly Drawn Stickman on May 24, 2024 10:06:32 GMT
Read this ThreadFairly well discussed in the above thread. Should explain things for you.
|
|
|
Post by nardge on May 24, 2024 10:10:18 GMT
Thank you!
|
|
michaelc
Member of DD Central
Posts: 5,344
Likes: 2,874
|
Post by michaelc on May 24, 2024 12:37:53 GMT
Good morning folks. Having been in P2P for a while, I'm currently looking to invest with Unbolted. However, on signing up, it mentioned words to the effect of the "risks of litigation, fraud, and insurance costs". I don't recall these being mentioned when signing up to other previous P2P platforms. Could someone briefly shed a light on each of these? Can a borrower take the lender(s) to court and sue them such that they a) lose their capital or worse still b) lose their own wealth outside of Unbolted? Or is it Unbolted that would be taken to court and sued? I am already familiar with the other risks - lack of liquidity, borrower's defaulting, platforms going bust etc Thanking you in advance. With Kind Regards. In a comical oversimplification, the answer sadly appears to be yes a party can go to court to seek the names of any lenders and presumably then sue them. I'm sure someone has thought this through far more than me, but wouldn't a solution be for the FCA/government to propose that lenders of any FCA regulated site cannot be sued by their borrowers for any matter relating to the loan. They must sue the platform directly. That would still be p2p in my book but just with some additional legal protection for the lenders. Whether or not the lenders should be known or not to the borrowers is another matter to be sorted out. Its one of the reasons I decided to get out of p2p some years ago (with one exception). The processes is taking years due to illiquidity of the assets (the loans).
|
|