In common with other P2P loans, the expected returns on Money Platform loans may vary over time. They are not comparable with a bank savings account where the return is fixed and low risk. P2P loans are higher risk than a bank savings account and there is no minimum guaranteed return. P2P loans have the potential to generate higher or lower returns when compared to low-risk investments. They are suitable for investors who have a high-risk tolerance.
In common with all P2P loans, The Money Platform’s loans are not covered by the Financial Services Compensation Scheme (FSCS) . This is different from a bank, for example, which is covered by FSCS. This means that if you incur losses on your investments with The Money Platform you cannot make a claim for compensation from FSCS
When you invest in a Money Platform loan, you are entering into a direct contract between yourself and the borrower. For data protection reasons neither party is provided with the name of the other party, instead each is assigned a unique customer number. Under the contract, The Money Platform is the agent appointed to administer the contract on behalf of borrower and lender. Accordingly, the lender is exposed to the credit risk of the borrower only. The Money Platform does not provide a guarantee on the loan and has no liability to repay the loan in the event that the borrower defaults on the loan
100% of your capital is at risk when you invest in P2P loans such as Money Platform loans. There is no security on the loan from the borrower, there is no guarantee from any 3rd party, and there is no guarantee from The Money Platform. If a borrower defaults, The Money Platform will carry out its duties as loan administrator to recover the amounts due under the loan agreement, however The Money Platform will not reimburse any amounts owed.
The Money Platform is authorised by the Financial Conduct Authority (FCA) to operate a platform to arrange P2P loans (our legal entity is Gracombex Ltd, FCA registration number 716455). The FCA does not provide any guarantee on loans. If you have a complaint then in the first instance the FCA rules require you to contact The Money Platform with your complaint first. If you are not satisfied with the outcome you can then make a complaint to the Financial Ombudsman Service (FOS)
Unlike some other P2P platforms, The Money Platform does not provide a secondary market for lenders to sell their loans before maturity. All loans are held to maturity or until repayment if later. There are no other websites, secondary markets or mechanisms for a loan to be sold
In the event that The Money Platform enters a wind down scheme, the company’s wind down plan will be invoked, details of which can be found on our website here. Under the wind down plan, the company will undertake its usual loan collection efforts for 6 months from the date of starting wind down. No guarantee is provided on the repayment of loans in wind down and they are subject to the same repayment risks as usual. All capital is at risk during wind down, the same as it is when the business is operating as a going concern
The terms of your loans are set out in a loan agreements between you and the borrowers.In the event of any disagreement between the information above and the loan agreement, the terms of the loan agreement shall prevail.