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Peer-to-peer lender RateSetter joins £2bn club




By Ryan Weeks on 28th July 2017


RateSetter hits £2bn in cumulative lending, becoming the third UK-based peer-to-peer lender to do so.

 

The “big three” peer-to-peer lenders in the UK continue to cement their position. RateSetter has just become the third platform to tick over the £2bn milestone in cumulative lending, according to AltFi Data. Rivals Funding Circle and Zopa each passed the £2bn mark earlier this year, and now stand at around £2.5bn apiece.

 

The milestone comes at a tricky time for RateSetter. The platform is currently in the midst of a month-long window during which it will offer fee-free sell-outs to investors, provided that there is sufficient liquidity in the marketplace to allow for it.

 

The sell-out offer was made a few weeks ago in tandem to the publication of new information about the firm’s former wholesale lending partners. Wholesale lending in peer-to-peer lending has effectively been banned by the FCA – a move that was cemented by a now-infamous letter sent by the regulator to platform CEOs in March.

 

RateSetter’s claim that it is in the process of winding down its wholesale lending activities was recently corroborated by AltFi Data analysis, which showed that these loans have now all but disappeared from its loanbook.

 

But some investors have nevertheless been spooked. “This whole debacle has got my confidence in a spin,” wrote one Twitter user. 

 

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