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How much money would you borrow in a listing?Post here just how much money you would be looking for and for what purposes. Maybe even giving a hint as to what interest rates you would be expecting. Depending on the rates available, I just might try to get a car loan upon graduation, as I will likely have a secure job, but need a reliable car. Unfortunately, it seems like many of the Prosper.com listings are for people unable to get a decent loan rate, so I might end up better off at a bank. We'll see.
Submitted by Dan on Mon, 06/04/2007 - 21:30. categories [ ]
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Borrowing Amounts
I'll likely be looking to get amounts in the $2K-$10K range (one time purchases like new appliances, car repairs), hoping to get rates in the 6%-9% range in order to get a slight edge over what I know I can get from a bank.
Why all these regulations?
Hi Dan and everyone, I am curious why all these regulations? I mean, if Gab Goldenberg want to borrow as previous message say, and I am willing to lend it to him, and we agree on the rate, then we have a contract. Offer, Acceptance, Consideration. (for those who are in law, those are requirement for contract). So I do not see why I cannot lend to Gab without getting into any legal mess. Please give me a hint on why IOU Central and CommunityLend need all these laws?
Watch Out, We're Dealing With Money Here!!!
Calvin: That's exactly the problem facing these companies in the online banking environment. The old rules really don't apply too well to this newer uncharted territory.
I guess the problem is that the regulators want to (or at least attempt to) consider these institutions are "brokers". Now, I suppose that one does need a license to broker some goods, but not others. Anyone can broker the sale of computer mousepads if they want, but some goods are considered "special". If these "marketplaces" are considered to be "trading" "securities", then that is a problem. If they are acting as something else, then that is okay. Like you say, you'd assume that an intermediary trading/moving contracts around should be fine.
And then you have to ask other questions, like, how is Ebay allowed to operate here? Why is agreeing to send goods in return for money different than agreeing to send money in return for a bit more money? How about online property? Didn't you need a real estate license to broker real estate and other goods? I think the thing is that if the regulators (not necessarily the government, but their quasi-judicial enforcement departments) wanted to shut down Ebay when it first expanded into Canada, there would've been a huge upheaval. But if they try to shut-down these small players, they can just say, well, they're small and sketchy (even though Ebay, Craigslist, etc. once were), with little negative fanfare.
Does this all make sense? I doubt it does to anyone at all. Another complicating issue is that in Canada, the securities regulators are all provincially based, what is ok in one place, isn't in another. Only the banks are federally regulated. Even the massive US has one securities regulator, the SEC.
Sooooo... anyone want to get friendly with the friendly regulators of PEI (I'm sure they're all nice people there), and start a service there? I doubt they'd try to crush a new employer too hard offering high-tech services and investment.
And yet throughout all of this, there are tons of payday lenders somehow charging over 60% per annum more than you get loaned to you, which I thought was criminal in Canada???
I'll be looking to borrow
I'll be looking to borrow sums I couldn't make personally within 2-3 months. So looking at 10K+, by the time it gets here... BTW, nice blog idea.
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