In future, all P2PFA members will calculate defaults on their loans in a standard way, helping consumers compare between platforms and to strengthen standards of industry disclosure.
The new default rate calculation is currently being implemented and will be published on each individual P2PFA member’s website.
This is one of a number of steps being taken by the P2PFA to strengthen standards of consumer information disclosure. Default rates in the sector have been very low to date, but the P2PFA see it as crucial that default information is fully disclosed in a meaningful way, especially as the sector grows and matures further.
Commenting on the new measure, Christine Farnish, Independent Chair of the Peer-to-Peer Finance Association, said:
“Information on loan default rates is crucial information for consumers looking to lend on peer to peer lending platforms. Having a standard measure helps ensure that this important data is presented in a transparent and fair way and ensures that loan default data is honestly presented. Consumers can trust P2PFA members to uphold high standards and treat them fairly. If you want to lend on a peer-to-peer lending site you should look for the P2PFA logo."
