I recently read a lot about P2P lending sites and their favourable interest rates but the skeptic in me wants to get more opinion from real people here with experience (and not blogs that get affiliate profits) of using these sites.

  1. Was anybody using (or know about) P2P lending sites around the time of the last recession in 2008 and is it possible to withdraw your funds in a situation like this?
  2. Even with cashback guarantees, has anybody had any issues with loan failures or withdrawal problems?

In general I would like know about any users here that had a negative experience on these sites in relation to withdrawals and loss of income.

Edit: Based in europe

  • 2
    There weren't many P2P companies around then, but there were some... this article analyses their 2008+ performance: lendingmemo.com/p2p-lending-recession-performance (sorry, don't have time to work up a full answer).
    – timday
    Jun 12 '19 at 18:06
  • @timday thanks great link, exactly details I was looking for.
    – bp2010
    Jun 15 '19 at 15:12

This is anecdotal.

I invested $2,000 in Prosper loans in 2008. My annualized returns were -0.39%. Of 40 loans I made, 13 were charged off, and 27 were repaid in full. I deposited $2,000 and withdrew $2,012.16, including a $25 promotional signup bonus. I never had any problems with withdrawals.

  • Interesting, so in general no loss which is my only concern. Lower interest rates would be expected I was just thinking in the case of losing the full deposit.
    – bp2010
    Jun 15 '19 at 15:13
  • Note that I would’ve had a little bit of loss were it not for the signup bonus.
    – Cody
    Jun 16 '19 at 16:52

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