Until February this year, it all sounded terrific: A new Individual Savings Account (Isa), which instead of offering cash savers as little as 0.5% a year, would instead offer returns of up to 6%, tax-free.

Yippee!

But just weeks before launch day in April, Lord Turner, the former boss of the Financial Services Authority, let off an intellectual grenade designed to inflict serious damage on the whole idea of what is known as Peer-to-Peer (P2P) lending.

Speaking onĀ Radio 4, he predicted that over the next five to ten years there would be huge losses for P2P lending platforms, which would make the banks look like “lending geniuses”.

Article source: BBC, Business, 26th March 2016,

http://www.bbc.co.uk/news/business-35881629

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