Netherlands

Recent peer-to-peer lending developments in the Netherlands

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Dutch Boober this week resumed full operations overcoming an imposed stop on lending. Lenders however now are facing even more restrictions. After a maximum amount of 39000 Euro was introduced for lenders earlier, a new rule now allows lenders to close no more than 100 loans. Since the minimum bid is only 5 Euro in the worst case that could mean, that a lender has to stop after lending out 500 Euro (100×5). Apparently this development means that the top lenders, responsible for 30% of Boober's total loan volume, are banned from lending more money. While lenders critizise this new development as overregulated forced by dutch regulator AFM, there is not much they can do about it. Theoretically each individual lender could apply for a license, but in practise license fees over 1000 Euro prohibit this move.

Frooble

After a failed launch in May p2p lending service Frooble.nl now wants to lauch with a new concept. Borrowers can seek short term loans of 1 to 3 month duration for amounts between 50 and 500 Euro. Apparently these parameters have been selected to avoid falling under the regulation of the AFM. It remains to be seen if Frooble can thrive with this business model.

Regulator forces Dutch p2p lending site boober to stop lending

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Dutch p2p lending site Boober.nl is in big trouble. A court in Rotterdam ruled that Boober needs a license, with the judge supporting the position of the regulating authority AFM. After Boober published its interpretation what this ruling means, the AFM clarified its position in a press release.

Under pressure Boober finally posted a statement on its homepage saying that while the site remains open and existing loans will continue to be serviced, Boober stops any lender bidding. Statement:

Beste Boober Gebruiker

In tegenstelling tot wat dinsdag en woensdag is gecommuniceerd heeft Boober gisteravond na overleg met de Autoriteit Financiële Markten besloten om de krediet-bemiddelingsactiviteiten voorlopig te staken. Dit wordt geëffectueerd door uitleners voorlopig niet de mogelijkheid te geven op leningen te bieden . De site blijft gewoon beschikbaar en het besluit heeft geen enkele consequentie voor lopende leningen.

Boober betreurt de ongelukkige wijze waarop zij met de markt heeft gecommuniceerd en verwacht begin volgende week meer duidelijkheid te kunnen verschaffen.

Boober's service was controversial in the Netherlands from the start. It was even subject of discussion of the Dutch national parliament.

An update on what will happen next is expected early next week.

Richard van den Toorn, publisher of the great site Booberwatch.nl has supplied P2P-Banking.com with this chronology of events: Continue reading →

Boober quarreling with regulator

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Dutch p2p lending service Boober.nl is quarreling with the regulating authority AFM. The AFM argues Boober needs a licence because it allows lenders in peer to peer lending to engage in commercial activities.

Boober CEO Guus Drijver denies that. He says that lenders can lend out only a maximum amount of 39000 Euro and even with an assumed interest rate of 10%, 3900 Euro profit per year could hardly be seen as commercial activity.

(Source: sprout.nl)

Lenders united!

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PIVN Netherlands 

In the Netherlands lenders have formed the 'Peer-to-peer Investeeders Vereiniging Nederland' PIVN.nl, which is an association of lenders of peer-to-peer loans.

The goals of the PIVN are:

  • periodic consultation with the p2p lending platforms
  • publishing information of interest to lenders
  • offering discussion forums
  • conducting comparisons between p2p lending services

At the moment Boober.nl is the only p2p lending service active in the Netherlands. PIVN states as one of it's goals to achieve lower fees for lenders (0.5% instead of the current 1%) at Boober.

Membership fee at PIVN is 5 Euro annually (approx. 6.50 US$). So far about 50 Boober lenders became members.