Former chairman of the financial regulator Adair Turner has warned about peer-to-peer (P2P) lending, predicting "big losses" in the coming decade a week after the sector experienced its biggest investment failure. Turner (pictured) told BBC Radio 5 Live's Wake Up To Money programme he worried automated processes and a lack of good credit underwriting will mean people are bound to lose money from their investment....
Sir Adair Turner , the former chair of the Financial Services Authority , yesterday sensationally told Radio 4 ’s Today programme that “ the losses which will emerge from peer - to - peer lending over the next five to ten years will make the bankers look like financial geniuses ” . However , the P2P ##FA were quick to fire back , with Christine Farnish , independent chair of the P2PFA stating : “ Anyone who has followed our industry closely will see that this morning ’s comments fly in the face of the evidence . Since the industry began , default on loans are low , usually between 2 - 3 % . We only lend to creditworthy consumers and established small and medium sized enterprises … ”