Years back (in like 2004 I think) I jumped into Prosper, the very first micro lending platform before the SEC jumped in to claim jurisdiction and opened a can of worms. I was amazed at the free market solution to lending, from reverse-auction bids on interest rates to the awesome credit details for lenders to make intelligent decisions on loan risk.
Around 2008, when the banks decided to shut down credit lines and jack credit card interest rates, Prosper provided a real alternative to the public. I loved it and made money along the way. Prosper also took he path of Lending Club and pushed into securitization and institutional clientele. I dumped my holdings about two years ago because all the tools they provided investors, they removed. I fear there will be a significant meltdown in the microlending market with a quick follow up by the regulators to eliminate the microlending maretplace.
the regulatory risks concern me as well. thank you very much for the reply!
stay tuned for more posts! More content soon ;D