P2P6 ???

[Amethyst]

What does that mean ?

FCA

High-cost short-term credit is proposed to be a definition in the Glossary of the
Handbook:

‘a regulated credit agreement:
• which is a borrower-lender agreement or a P2P6 agreement;
• in relation to which the APR is equal to or exceeds 100%;
either:
i. in relation to which a financial promotion indicates (by express words or
otherwise) that the credit is to be provided for any period up to a maximum
of 12 months or otherwise indicates (by express words or otherwise) that
the credit is to be provided for a short term; or
ii. under which the credit is due to be repaid or substantially repaid within a
maximum of 12 months of the date on which the credit is advanced;
• which is not secured by a mortgage, charge or pledge; and
which is not a home credit loan agreement, a bill of sale loan agreement or a
borrower-lender agreement enabling a borrower to overdraw on a current account
or arising where the holder of a current account overdraws on the account without
a pre-arranged overdraft or exceeds a pre-arranged overdraft limit.’

I'm guessing they just mean P2P as it is the only mention of P2P6 in the entire FCA consultation document

[CleverClogs]

Re: P2P6 ???

It's probably just a typo.

Seen any fnords yet?

[Gorang]

Re: P2P6 ???

Typo by the looks of it as I think that it will be meaning "person to person" agreement when the same line is already going on about "borrower-lender agreement"

[Amethyst]

Re: P2P6 ???

thanks guys, I did think that but didn't want to just assume, being as it is an official FCA consultation document...thought maybe it was something new fangled to do with short term high cost credit. P2P doesn't feel right there somehow. The question is 'do you agree with the formal definition of short term high cost credit' ....

[Gorang]

Re: P2P6 ???

'do you agree with the formal definition of short term high cost credit

‘a regulated credit agreement:
• which is a borrower-lender agreement or a P2P agreement;
• in relation to which the APR is equal to or exceeds 100%;
either:
i. in relation to which a financial promotion indicates (by express words or
otherwise) that the credit is to be provided for any period up to a maximum
of 12 months or otherwise indicates (by express words or otherwise) that
the credit is to be provided for a short term; or
ii. under which the credit is due to be repaid or substantially repaid within a
maximum of 12 months of the date on which the credit is advanced;
• which is not secured by a mortgage, charge or pledge; and
which is not a home credit loan agreement, a bill of sale loan agreement or a
borrower-lender agreement enabling a borrower to overdraw on a current account
or arising where the holder of a current account overdraws on the account without
a pre-arranged overdraft or exceeds a pre-arranged overdraft limit.’

P2P doesn't feel right there somehow.

would that not be relating to "loan sharks" (for the want of better words) maybe as they seem to rule out every other(or most of other) borrowing avenues further down, BUT I am only guessing

being as it is an official FCA consultation document

Can you email/phone them just to double check and confirm its a typo ???

As we are just guessing here and as you say

maybe it was something new fangled

I personally would NOT rule that out either

Sorry, I'm not helping here:doggieyes:

[CleverClogs]

Re: P2P6 ???

P2P doesn't feel right there somehow.

Power 2 Penurize ? fnord :rofl:
Peer 2 Peer ? (a sort of loan distributed among a number of creditors)

The question is 'do you agree with the formal definition of short term high cost credit' ....

Do they agree with the common understanding of usury?

[FlamingParrot]

Re: P2P6 ???

thanks guys, I did think that but didn't want to just assume, being as it is an official FCA consultation document...thought maybe it was something new fangled to do with short term high cost credit. P2P doesn't feel right there somehow. The question is 'do you agree with the formal definition of short term high cost credit' ....

P2P refers to peer-to-peer lending: http://www.which.co.uk/money/credit-...ding-websites/

http://www.p2pmoney.co.uk/

The text from the glossary refers to a regulated credit agreement which could be either a borrower-lender agreement (a traditional agreement) or a peer-to-peer agreement (a new fangled type of credit structure).

[Gorang]

Re: P2P6 ???

would that not be relating to "loan sharks" (for the want of better words)

Well I was close with my words then ........... not ....... or was I?? ..............You decide........ pmsl

http://www.which.co.uk/money/credit-...ing-explained/

Peer-to-peer lending explained

With Best Rate savings accounts and Best Rate cash Isas struggling to beat inflation, peer-to-peer lending sites are an alternative to the banks that could see you achieve a better rate of return on your investment.

What is peer-to-peer lending?

Peer-to-peer lending sites match up savers, who are willing to lend, with borrowers - either individuals or small businesses.

Rates can be better than those offered by banks - as high as about 16% for savers, and as low as about 5% for borrowers on a five-year loan.

However, high rates come with added risk, most notably the fact you might struggle to get your money back if a site goes bust because peer-to-peer sites aren't covered by the Financial Services Compensation Scheme (FSCS) which guarantees your savings up to the value of £85,000