RateSetter withdraws from P2PFA

The platform stated in a blog post that following an announcement to members last month, it had decided to withdraw from the P2PFA.

Last month, RateSetter told members that it had intervened directly with three of its borrowers: Vehicle Trading Group Limited, Adpod Limited and George Banco Limited.

The three interventions stemmed from RateSetter’s wholesale lending, which was discontinued in December 2016 and revealed it did not intend to intervene like this again. 

The platform gave members the opportunity to review investments even though the expected default rate on its outstanding lending remained unaffected. 

RateSetter added: “Membership requires adherence to the P2P Finance Association operating principles, including transparency. 

“No customer has experienced any loss from our actions, but we recognise that our actions breached the principles of the Association.”

The news comes after LendInvest also revealed it had left the P2PFA after announcing it had no short- or medium-term plans to add an Article 36(H) regulated platform to its investment offering.

Responding to RateSetter’s announcement, the P2PFA stated: “We understand the reasons why RateSetter has withdrawn from P2PFA membership and respect their decision.”