Perhaps our Banks are a better choice – Social lender Quakle goes bust


Poor credit assessment blamed for demise of short-lived company, which aimed to give savers better than average returns.

Social lending website Quakle has gone bust, it has emerged, just over a year after launching. The site, one of a number of such sites, also referred to as peer-to-peer lenders, closed to new business in April. It has now sent emails to customers advising them of its closure.

Social lenders offer people the opportunity to lend money to borrowers at an interest rate agreed by the person lending. They can potentially offer better returns on your savings than conventional savings accounts.

The three biggest names in this market are  ZopaRatesetter and Funding Circle. These three companies have also set up a trade body called the P2P Finance Association, which aims to set minimum standards of protection for social lending customers.
It’s estimated that £192 million has been lent via these websites over the past 18 months.
However, none of these companies are part of the Financial Services Compensation Scheme, which protects up to £85,000 of deposits if a company fails.
Quakle was not a member of the P2P Finance Association.

How Quakle came a cropper

Following the news of Quakle’s demise, Giles Andrews, CEO of Zopa and Chairman of the P2P Finance Association, said: “Quakle choose to ignore all of the available personal and business credit information, and instead apparently used customers’ social media profile and rankings to determine the risk they posed.

“As we believe most of the Quakle loans defaulted, clearly this was a big mistake. As the amount of money involved was quite small, we would hope that Quakle and its backers have repaid the money their lenders have lost.”

It’s believed that customers only lent around £16,000 via the site before its demise.
Quakle have not responded to our requests for comment on this story.

The Association says its three members use “fit and proper credit risk assessment processes” to assess borrowers. And it is working with the Government on regulation for the industry.

The Office of Fair Trading says it is monitoring developments in the social lending industry.

There is of course a sound business reason to invest in social media activities. If your company is missing the cutting edge of sophisticated social business to engage with your customers then perhaps you need to use the services of boutique social media recruiters. CNA Executive Search can help you find the talent you need via targeted recruitment engagement techniques. Give us a call on +44 121 702 1481 to find out more or email Gavin Chase, Social Media Headhunter  at gavin.chase@cnaint.com.

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About ChaseOneAssociates

The 'Betting' Headhunter | Social Media Headhunter The war for talent will get more intense as available human capital reduces over the next decade. The demand for consultancy orientated talent acquisition & recruitment services from experienced, proactive and knowlegeable recruitment search professionals and head hunters will intensify, specifically from those who offer niche offerings around specific markets. Are you seeking top permanent or interim performers in igaming, gambling, betting and casino or seeking social media specialists via proactive search methodologies: Chief Fraud & Risk Management Officer Head of Networks & Security IT Director, Online Gaming Global Trading Director Group HR Director Operations Director International Business Development Director Managing Director Marketing Director Senior HR Business Partner Chief Operating Officer Product Development Director eGaming Operations Manager Finance Director Social Media Marketing Manager Social Media Account Manager Digital Marketing Executive Director of Social Media Social Media Business Development Social Media & Community Manager In House Social Media Recruitment Manager VIP Development Director SEO Manager VP Customer Experience Operations Director, International Director of Regulatory Affairs Interim Mobile Application Manager CTO COO CFO CSO perhaps we should be speaking in order to ensure that your business has access to them. I do not work with job boards but am a proactive head hunter with 20 years experience recruiting in your market! Explore your next job or career challenge! Its all about your aspirations... Email: gavin.chase@cnaint.com Mob: 44(0)7838 206602 DDI: 44(0) 121 702 1481 Skype: the.betting.headhunter Speaker at The Fordyce Forum 2009, Las Vegas. Trained 20 years ago by James Caan of The Dragon's Den fame and Doug Bugie, current CEO of Antal
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