Flexible peer to peer lending & borrowing

General

GENERAL QUESTIONS & ANSWERS

What is this website?

This website is an "Online Peer to Peer Borrowing & Lending Marketplace for Unsecured Personal Loans".

It is where people who wish to borrow money, "borrowers", are matched with those who wish to lend money to earn interest, "lenders". Using one or more of the credit reference agencies and national fraud databases, we verify the ID, the loan proposition and the credit reference of the borrower. We analyse the available data, our credit risk decision engine executes our credit model to determine whether the borrower is an acceptable credit risk and allocates a credit score and hence an interest rate for the loan. "Peer to Peer" lending is sometimes called "marketplace lending", "social" or "online direct lending", or simply abbreviated to "P2P" lending.Whether the borrower is seeking a one year loan of £1000, or needs to borrow £7,500 for 5 years, lenders become a part of that loan to the borrower. This site is managed to effect such transactions for both lenders and borrowers, in a fair environment for the participants.

Who owns and manages this website?

Madiston plc owns and manages this website. Tim Simon is the Chief Executive and a brief biography of him and the management team is to be found in the "Meet the team" menu item.

How long has Madiston plc and this website been around?

This website launched in 2014 and Madiston plc was incorporated in May 2005.

How is this website regulated?

We aim to operate at the highest standards for lenders and borrowers. Madiston plc, the parent company of this site, has been granted:

  • Full Permission from the Financial Conduct Authority (FCA) to run an "electronic platform in relation to lending" No. 724098.
  • Approval to act as an Innovative Finance ISA Manager from HM Revenue & Customs.
  • Data Protection Registration with the Office of the Information Commissioner No. Z9599911.
  • Member of CIFAS the UK's fraud prevention service No. 653. 

The company registration number of Madiston plc is 05441652 and its VAT registration Number is 872 6970 79

Madiston plc's registered office is at 41 Ashley Road, Walton on Thames, Surrey, KT12 1HG, England, UK

How do I participate?

Have a look around the site taking note of the Safety & Risks information. Then select "Need a Loan?" or "Money to Lend?" and simply follow the instructions on the screens as they take you through the lending or borrowing process.

Do Madiston employees or directors borrow or lend on this website?

Employees of Madiston plc may use this site for lending or borrowing on exactly the same basis as any other user. Directors of Madiston plc may not borrow on the site, but they may lend, again, on exactly the same basis as any other user.

How does lending and borrowing work on this site?

Borrowers can get a personalised quotation, providing the interest rate range that is likely to be offered, without leaving a mark on their credit record.  To apply for the loan, the Borrower then completes a Loan Request summarising the borrowing requirement, how much to borrow, for how long and some financial information: monthly income, monthly expenditure and existing loans.

The loan request is then reviewed and we carry out various credit and other reference checking and ID verification to assess and then assign the credit grade appropriate to the borrower's circumstances. Many potential borrowers and loan requests do not stand up to our scrutiny and are rejected. This is usually because of credit reference or affordability issues.

Approved Loan requests are then fulfilled with lenders' funds that match the criteria.  The borrower is offered the loan at the interest rate and has the opportunity to accept or decline the loan.

See "How it works" for more information.

What will I pay for using the service?

Please refer to the menu item "Fees" for all the details.

Is my personal data safe & secure?

Madiston plc is registered on the Data Protection Register with the Office of the Information Commissioner (Registration No. Z9599911) and therefore both this website and Madiston plc according conform to the UK data protection laws.

We will never disclose any personal data other than that which is required for the correct running of the site.  Full details of what information we require for you to become a Lender or Borrower, how we use that information, what will be made available to other members or third parties, are all set out in the Terms & Conditions that users confirm agreement to when registering.

Please review the Website Use Terms or use this link to go direct to the Privacy policy.

What personal information can be seen by other users?

Only your username can be seen by others so please ensure that your chosen username does not give away your identity. For example, if Fred Bloggs chose a Username of "fredbloggs" or Joe Smith used his email "joesmith@email.com" for his Username, then both would give away their actual identity, but "cheekylender5" or "whodunit" as usernames would be ok! 

How do credit grades work?

When a borrower has been credit referenced he or she will be allocated a credit grade which reflects their personal circumstances and this determines the interest rate at which any loan will be offered.

How can I keep up-to-date with my money & accounts situation?

There are extensive facilities for managing your borrowing and/or lending here including:

General Account - Statement of money in and out, facilities for paying in and withdrawing money.

Borrowing Accounts - Actions required, active loan requests and their offers, current loans details, declined and rejected listings, all time totals, drill down to loans, loan slices, lender contracts, repayment plans, instalment history, individual loan accounts, direct debit repayments scheduled.

Lending Accounts - Lending dashboard, account summary current and historic, sources and uses of funds, principal repayments, interest repayments and other interest income, fees deducted and not yet deducted, audit trails.Loan Book - Summary of all lending with drill down to loan slice details, repayment plans and individual loan slice accounts.

Can I choose which emails I receive from the site?

As your lending or borrowing progresses you will receive confirming emails for all actions. Some of the confirmation emails, for the most important events, are mandatory, but you can customise which optional confirming emails that you wish to receive, on your Profile, the Email Preferences tab.

Is there a tax liability with this activity?

For borrowers there is no taxation effect but for lenders there may be depending upon your personal circumstances. 

At the end of the tax year we will make an annual interest income statement available for you to download. This will show the total gross interest you've received over the tax year.  For a lender lending as an investment activity (as opposed to a business) and because interest is paid to you without any deduction of tax, you may have to make a return of interest income to Her Majesty's Revenue & Customs ("HMRC"). There are links below to information on the GOV.UK website to help you determine the correct level of tax. For instance, from 6 April 2017, the Personal Savings Allowance for a basic rate tax payer, allows you to earn up to £1,000 in savings income tax-free and it's £500 tax-free for higher rate tax payers. It is now also possible to offset losses suffered on unpaid peer to peer loans against interest earned on other peer to peer loans.

Information on Personal Savings Allowance on the GOV.UK website: https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowanceInformation on taxation in Peer to Peer Lending on the GOV.UK website: https://www.gov.uk/guidance/peer-to-peer-lending

How can I contact your team to get help?

There is a host of information on the tooltips, How it works page and in the FAQs.  If we haven't answered your query there, please get in touch via the form on the Contact Us page.  We will endeavour to respond promptly during normal UK based office hours 0900 to 1700 hours Monday - Friday.  Outside normal office hours we will respond as soon as we can on the next business day. 

Borrowers

BORROWERS' QUESTIONS & ANSWERS

How much can I borrow?

You can borrow from £1,000 to £7,500 in £10 increments subject to credit referencing. Details of what is currently available are set out on the Loans & Lending - What is available.

Over what term can I spread my repayments?

You can borrow for terms from 12 to 60 months in three months increments subject to credit referencing. Repayment instalments will always be made monthly. Details of what is currently available are set out on the Loans & Lending - What is available.

What interest rate will I pay?

Initially, you can get a personalised quote by entering a few details about yourself.  This won't leave a mark on your credit record but it will enable us to see whether you will qualify, and, if so, give you a rate range for any loan that you're likely to be offered on the site.  Once you have that rate range, you can decide to continue and submit a loan request.  At this point we will ask you more questions and carry out a full credit reference which will be visible on your credit record.  When the ID, affordability and credit checks are complete, and lenders' funds satisfy your loan, you will be offered the loan at a rate that reflects your personal circumstances. You may accept or decline the loan. 

How will my repayment instalment schedule be calculated?

The repayment instalment schedule is calculated on the outstanding loan principal at the instalment payment date. With each instalment there is a small amount of the loan principal repaid and this reduces the interest charge for the next month. Because each monthly payment is fixed, the amount of principal that is repaid will increase slightly each month and the interest will reduce.

What information do I have to give to become a borrower?

To participate on this site you need to be:

UK resident on the Electoral Roll - this excludes residents of the Isle of Man and the Channel Isles.

Over 18, but you will need at least three years of credit history and therefore you probably need to be over 21.

Holder of UK Bank Account

You will also need to provide your:

Name & AddressResidential Status & Previous AddressEmail AddressGenderDate of BirthHome & Mobile Telephone NumbersMarital StatusNationalityOccupationEmployment DetailsSpecific Answers to Financial Status Questions

How will you check my credit reference?

To borrow on this site, you agree the borrower terms which grant us permission to run a credit reference check at one or more of the UK's credit reference agencies (e.g. Equifax, Call Credit, Experian).

If you request a personalised quotation we run an Identity Verification search and a Credit Quotation search. The latter search will be visible to you and us on your credit records, but will not be visible by others and will therefore not affect your credit rating. 

When you create a new Loan Request, a Credit Application search is run (just as any other credit provider or bank will do) and this search is visible to other credit providers on your credit records and hence might affect your credit rating. We may require sight of some documents of physical proof, bank statements, payslips, etc.

Repaying a loan via our site and making all the repayments on time will have a positive effect on your credit rating.

Can I get a loan if I have a bad credit record?

On this site, no, you probably cannot. However, there are various ways to improve your credit rating and/or remove any errors that you might have in your credit reference. For advice on this try: 

This is Money - How to Improve and Protect your Credit Rating

Money Saving Expert - How to Improve Your Credit Rating

When you're sorted, then come back. Good luck!

 

How do you decide if my borrowing proposition is acceptable?

The bar is set quite high on this site for creditworthy borrowers.  Your loan request information and credit score must be above our minimum level for acceptance.  Following our assessment via the credit risk decision engine, we will advise you immediately if your loan request information and/or your credit score is insufficient. It may be that we request some more information or confirmations from you.

If all is good the loan request will be matched with appropriate lenders' funds and when the loan amount is fully funded, a loan offer will be made which you may accept or decline.

What will I pay for using the service?

Please refer to the page "Fees"  for the detail.

How do I sign up as a borrower?

Have a look around the site taking note of the Safety & Risks information. Then select "Need a Loan?" and simply follow the instructions on the screens as they take you through the borrowing process. 

 

What personal information is visible to others on this site?

Only your username can be seen by others so please ensure that your chosen username does not give away your identity.  For example, if Fred Bloggs chose a Username of "fredbloggs" or Joe Smith used his email "joesmith@email.com" for his Username, then both would give away their actual identity, but "CheeryBorrow_5" or "RhubarbPie" as Usernames would be ok!

Can I edit my loan request?

You can edit a loan request before it is approved by selecting the Edit Listing button next to your Loan Request on Your Borrowing Account.

Can I cancel a loan request?

No, once it is approved and published it has to run its course.

However there is no obligation for you to accept any resulting loan if you have decided not to go ahead with it. 

How can I keep up to date with my borrowing, repayments and accounts situation?

There are extensive facilities for managing your borrowing including:

Borrowing Account - Actions required, active loan requests and their offers, current loans details, declined and rejected listings, all time totals, drill down to loans, loan slices, lender contracts, repayment plans, instalment history, individual loan accounts, direct debit repayments scheduled.

My loan request has expired. What happens now?

If your loan request is fully funded you now have 48 hours to decide to Accept or Decline the loan. If the interest rate is acceptable and you are able to accept then open the Loan Request and click the "Accept" button. If you do not want to accept the loan then click the "Decline" button and enter your reason for declining.

If I accept, how long does it take to get the loan?

It could take between 1 and 3 working days.

Can I change my mind after accepting a loan?

The Distance Marketing Directive gives a borrower the right to change his/her mind within a 14 day period from accepting the loan. In this case please get in touch via the form on the Contact Us page.

Can I change my instalments or repay the loan early?

Yes, the Change in Instalment Plan ("CIP") facility exists for you to change your instalments or repay the loan earlyTo qualify for CIP your loan must have received at least one successful repayment according to the original repayment plan.

I've already got a loan via your site, can I take out another?

We will review the situation based on the credit referencing and other details and inform you as to whether a second or subsequent loan is possible.

What happens if I miss an instalment and/or cannot repay my loan?

If you miss an instalment because your Direct Debit fails you should contact us as soon as you become aware this has happened. You should make the payment directly to the account as soon as you can. There is a fee for a Direct Debit failure, please refer to the Fees menu item for the details .

How you manage your loan repayments can impact your credit record positively or negatively so it is important to avoid making repayments late or missing repayments or failing to repay your loan so it goes into "default" status.  Please contact us immediately if you are struggling to make your repayments.

Please click here for details about default on loans

Lenders

LENDERS' QUESTIONS & ANSWERS

How much can I lend?

You can lend from £10 to whatever you want, no maximum limit. Details of the loan products currently available are set out on the Lending Investment Products page. If you are "lending as a business" you need to hold appropriate permissions from the Financial Conduct Authority for consumer credit and Anti-Money Laundering ("AML").

Over what term can I spread my lending?

You can choose the Lending Investmet Product that suits your requirements.  For example, choose "36 Month Term" to participate in loans with 12 to 36 month terms.  Choose "60 Month Term" to participate in loans of more than  36 months to 60 months.  Repayment instalments including interest are paid monthly.  Details of the loan products currently available are displayed once you have selected "Money to Lend?" from the Home page.  You will also find them on the "Investment Products" link in the left side menu when you have completed registration as a lender.

 

What interest rate will I get?

The interest rate that you receive depends on the Investment Product/s you select. The Lending Investment Products are shown once you have selected "Money to Lend?" from the Home page and the current rates will be displayed with each Investment Product.  You will also find them on the "Investment Products" link in the left side menu when you have completed registration.

All interest rates displayed within Investment Products are shown as annualised rates, net of platform or service fees, assuming re-investment of principal repayments and before tax.

Please note that interest is paid to you without any deduction of tax, so you may have to make a return of interest income to Her Majesty's Revenue & Customs ("HMRC").  There are links below to information on the GOV.UK website to help you determine the correct level of tax.  For instance, from 6th April 2018, the Personal Savings Allowance for a basic rate tax payer, allows you to earn up to £1,000 in savings income tax-free and it's £500 tax-free for higher rate tax payers. It is now also possible to offset losses suffered on unpaid peer to peer loans against interest earned on other peer to peer loans.

Information on Personal Savings Allowance on the GOV.UK website: https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance

Information on taxation in Peer to Peer Lending on the GOV.UK website: https://www.gov.uk/guidance/peer-to-peer-lending

How do I get a tax certificate?

Lenders can access tax certificates by logging into their account and selecting "Your Details" from the left side menu.  The tab "Tax Statements" enables you to download the tax statement for the latest financial year or you can select Start and End dates to generate your own report.

How will I receive my interest & principal repayment instalments?

When the borrower accepts the loan, the first repayment instalment will be one calendar month from the acceptance of the loan and the second and subsequent repayments monthly thereafter. 

The instalment repayment schedule is calculated on the outstanding loan principal at the instalment payment date. With each instalment there is a small amount of the loan principal repaid and this reduces the interest charge for the next month. Because each monthly payment remains the same, the amount of principal that is repaid will increase slightly each month and the interest will reduce. You can also view the detailed repayment schedule for each loan that you make.

What information do I have to give to become a lender?

To participate on this site you need to confirm:

- UK residency and inclusion on the Electoral Roll - this excludes residents of the Isle of Man and the Channel Isles- aged over 18- details of UK Bank Account

- whether lending is for investment or business purposes

You will also need to provide your:

Name & Address
Email Address
Gender
Date of Birth
Home & Mobile Telephone Numbers
Occupation

Do you perform any checking on me before I can become a lender?

No, but once lending, subject to certain limits, we are obliged to perform all the normal verification checks as well as those required under the Anti-Money Laundering regulations

How does the site check the borrower's credit reference?

When a borrower creates a new loan request an ID verification and a credit application search is run, which is the same as any other credit provider or bank will do. We then assess the credit risk using our Risk Analysis Decision Engine (RADE). We only allow lending to credit worthy borrowers.

Can a borrower post a loan request if he or she has a bad credit record?

No, not on this site.

What will I pay for using the service?

Lenders receive the interest rate that is quoted on the lending product after deduction of any loan servicing fees. Please refer to the menu item "Fees"  for the detail.

How do I sign up as a lender?

Have a look around the site taking note of the Safety & Risks information.  Then select "Money to Lend?" from the Home page and simply follow the instructions on the screens as they take you through the lending process.

How do I deposit and/or withdraw money?

This site currently uses the Faster Payments system for money Deposits and Withdrawals.

To notify us of a deposit or request a withdrawal from your holding account, select the link "Pay In & Withdraw Money" from the left side menu and follow the instruction on the screen.

You can transfer money directly into our segregated Client Money Account at Barclays Bank.  Your Username must be in the reference field so that we can correctly identify your deposit.

How can I keep up to date with my lending and financial accounts situation?

There are extensive facilities for managing your lending here including:

General Account - Statement of money in and out
Lending Accounts - Lending dashboard, account summary current and historic, sources and uses of funds, principal repayments, interest repayments & other interest income, fees deducted and not yet deducted, audit trails.
Loan Book - Summary of all lending on active loans, active loan details with drill down to loan slice details, repayment plans and individual loan slice accounts.

It's more than a month and I haven't received a repayment from the borrower yet?

The first repayment may take up to 38 days to reach your account after the acceptance of the loan by the borrower. 

Subsequent repayments will always be monthly on or near the same day of the month.

The borrower seems to have paid more than I was expecting?

If this is the case then it is possible that your borrower has used the Change in Instalment Plan ("CIP") facility. CIP exists for the borrower to change instalments or repay the loan earlyTo qualify for CIP, a loan must have received at least one successful repayment, according to the original repayment plan.

What happens if the borrower doesn't pay an instalment?

If a borrower misses a repayment, in other words, a direct debit has failed, we will make contact with that borrower to find out why. We will endeavour to procure that a replacement payment is made as soon as possible. In the unlikely event that the borrower is unable to make further repayments, please refer to the next question.

What happens if the borrower defaults on the loan?

We will apply a structured process to the situation as set out on our page "Late & Missed Payments, Arrears and Default on a Loan"

Can I cancel or terminate a loan?

No, a loan is a contract and once it is running neither a lender nor a borrower can cancel or terminate the loan, it must run its course. However, the borrower may choose to repay the loan early or the lender may choose to withdraw funds.  In the lender's case, their loan parts would be offered for sale to other lenders.  See next question "Can I get my money back early if it is already lent out?" for more information on this.

Can I get my money back early if it is already lent out?

You can request to withdraw funds that have been committed to loans from the "Pay In & Withdraw Money" link on the left side menu.  Enter the amount you wish to withdraw and we will place your qualifying loan slices (up-to-date and not close to a repayment date) to the value requested, on the Secondary Market for sale to other lenders.  Please note that this is dependent upon other lenders being available to purchase those loan slices, so this cannot be guaranteed or may take time to conclude, and there is a fee for successful loan sales, please refer to the Fees page.

Have a question that isn't answered here? Please write it in the Contact Us form, to send to us.