Post by ablender on Nov 8, 2015 12:24:20 GMT
This question will be relevant to all platforms.
When a platform says that they hold the lenders' money which is not invested in a segregated client money account which is protected by The Financial Services Compensation Scheme, as any other bank account would be:
does this mean that each individual lender will get the benefit of the full compensation scheme? OR
all the lenders of a particular platform share that compensation scheme limit (I cannot remember how much it is)?
What triggered my question is the fact that lots of platforms that I have tried (lent through), use Barclays as their bank to hold client money. Now, thinking about how we try to diversify our lending, not only by lending to different borrowers and loans but also by using different platforms, I was wondering, if this single bank had to get in trouble how much of a risk will this represent to us? Has anyone thought about this? Any comments to share?
When a platform says that they hold the lenders' money which is not invested in a segregated client money account which is protected by The Financial Services Compensation Scheme, as any other bank account would be:
does this mean that each individual lender will get the benefit of the full compensation scheme? OR
all the lenders of a particular platform share that compensation scheme limit (I cannot remember how much it is)?
What triggered my question is the fact that lots of platforms that I have tried (lent through), use Barclays as their bank to hold client money. Now, thinking about how we try to diversify our lending, not only by lending to different borrowers and loans but also by using different platforms, I was wondering, if this single bank had to get in trouble how much of a risk will this represent to us? Has anyone thought about this? Any comments to share?
