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....
Lord 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 lending geniuses”. However, the P2P lenders were quick to fight 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, measuring between 2-3%. We only lend to creditworthy consumers and established small and medium sized enterprises…”