Folk2Folk’s response to Adair Turner’s criticism of the P2P industry

“To lump all P2Ps together and suggest they take a laissez-faire approach to risk is grossly inaccurate and revealing of Lord Turner’s lack of understanding of the broad nature of the P2P sector.  There are a number of very different providers operating in the P2P arena and we would encourage customers to do their research and make sure they understand the difference between them.

“In the case of Folk2Folk we have a clearly defined and simple product where risk is limited by taking significant security against the loan (60% LTV on a forced sale basis) and an in depth analysis by experienced credit individuals.  We don’t just rely on algorithms but look at the full picture of the person – their reputation and standing within their local community. To date Folk2Folk has a zero default record. We place value on understanding our customers and build strong relationships with them via our high street branches.”

– Jane Dumeresque, Folk2Folk CEO