FSCS and peer-to-peer lending sites
4th September 2012
The Financial Services Compensation Scheme (FSCS) met with some of the main players in the peer-to-peer lending market recently. FSCS does not cover peer-to-peer lending. However, if the peer-to-peer site holds the investor’s money in a client account opened with an FSA authorised bank or building society FSCS will cover the investor up to £85,000 if the bank or building society goes bust. FSCS would require evidence of the investor’s entitlement and aim to pay back the deposit within seven days.