The lending club scam is some thing that has not happened but many people who are investors in this club have not lost cash. There are other people who try to make it look like a scam. This is because of the reality that this is not a method of lending and borrowing that is in the traditional techniques. It is not even an institution, but these days, the SEC has made it to adhere to particular guidelines and the entire procedure of lending and borrowing is going on in a smooth manner. There are numerous individuals who invest in this scheme and there are numerous others who borrow cash in this scheme.
So, where did the term lending club scam start appearing? There was a time when the borrowers did not repay the money on time and then the investors had to make them pay up. This is when the people who had been not happy with the methods started poor mouthing the whole scheme by calling it with numerous names and one of them was lending club scam. This does not mean that the entire scheme does not have any risks at all. Just like so many of the other monetary programs, this kind of lending also has some risks related with it. The main danger is that the person who has borrowed the money may not repay on time or they may not repay at all. Though this is a main risk that is what all the monetary schemes are all about. If you invest in high danger goods, you will also be in a position to have a chance of earning high returns.
Many of the investors who have put their money in this scheme have been in a position to get a lot of returns and the amount that the investor has got is about 12%. So, this is a great investment method. Although there had been some underhand dealings in the initial stages, the SEC has produced certain that the whole process of lending and borrowing is going on smoothly. All the problems have been ironed out and this scheme has become a genuine one exactly where the lenders as nicely as the borrower stand to gain. So, if you are preparing to invest into this scheme, then you do not have to be concerned about the lending club scam simply because it is only a word coined by those who had been dissatisfied with the returns.
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