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Social Lending: Loans From People, Not Banks

Discussion in 'BlackHat Lounge' started by beefsupreme, Jan 15, 2009.

  1. beefsupreme

    beefsupreme Junior Member

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    Occupation:
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    I came across this website called Zopa, which is a social lending site, a whole new concept.

    Basicly it's like lending money to your friends and family, except there's thousands of people who you can lend money to and from whom you can borrow. The rates are much better than banks because there isn't thousands of employees to pay, big branches to maintain and so on.

    Seems like a very interesting and promising concept. Currently Zopa is only available in the US, UK, Japan and Italy.


    I have only two questions about Zopa ... how safe is it, and how much money can a person borrow?

    I mean, banks can lend you 100's of thousands if you need to build a house or something. Right now I think Zopa is only good for small loans, like a few grand max. But when it gets really big I think it'll be possible to get larger loans. I see a bright future for social lending.


    Code:
    http://www.zopa.com

    What do you guys think?
     
  2. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    i see this going the way of the dodo...
     
  3. topsytips

    topsytips Regular Member

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    There are a lot of co-ops being established on the high street which operate a similar business model. Haven't checked out the rates but I would be inclined to go for the latter, if at all. Depends how much you are prepared to lose if the whole thing a) Isn't a scam and b) Doesn't go pop!! ;)

    EDIT: Not sure if you're looking to invest or borrow so guess that makes a difference...check out any hidden charges and terms and conditions if you borrow as you may not be afforded the same consumer protection that you are accustomed to!
     
    Last edited: Jan 15, 2009
  4. hawke

    hawke Power Member

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    It's just a credit union. Credit Unions are Owned by the Depositors(Account Holders). We have a couple here in Ohio. They are governed by the same Banking laws as traditional Banks.
     
  5. Rushpat

    Rushpat Registered Member

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    Similar to Prosper.com?
     
  6. helaughs

    helaughs Registered Member

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    Yeah very similar, both are a neat idea, but the business models suck horribly. To think that average people can accurately assess risk with only a credit grade is pretty absurd in my opinion. I would rather gamble on PPC marketing or something similar where at least I can control the risks that I am taking.
     
  7. winterraven

    winterraven Junior Member

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    its not new. I use prosper.com

    Unlike the stock market.... I have a 19% average interest rate on my money. Beat that!
     
  8. lewi

    lewi Jr. VIP Jr. VIP Premium Member

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    Urrrrm im going to look into this and see if i can make some money out of this without borrowing anything or without lending any money....

    anymore sites like this?? the less established the better?

    edit: also wondering how on earth these are made secure?