Friday, February 29, 2008

IOU Central halts operations to 'resolve a regulatory matter'

IOU Central, the first P2P lender in Canada, has suspended all new loan requests and stopped bidding on loans in order to "resolve a regulatory matter." This is the announcement on their website:

What Functionalities Are Available?

Please note that the posting of new loan requests and the placing of new bids on loans has been temporarily stopped. Any loans which have already closed and been funded will be repaid and serviced in accordance with the borrower and lender agreements.

Why Is IOU Central Operating With Limited Functionalities?

IOU Central is now operating with limited functionality while we resolve a regulatory matter. IOU Central is acting in a very new area. We are the first in Canada, although similar models are operating under similar regulatory environments in the US and the UK. We are modeled on those innovative enterprises. We are committed to working with all the relevant regulatory bodies in order for us to continue to offer this service to borrowers and lenders. We will take all measures necessary to ensure we are working in full compliance with all regulations.

When Will IOU Central Be Fully Operational?

We will notify all our users by email when the site is fully operational. If you are not already a user, you may register with us and we will notify you by email when the site is fully operational.

CommunityLend is also expected to open in Canada soon. In comments on Prosper Lending Review, Colin Henderson, the CTO and co-founder of CommunityLend has said, "We remain on plan for our upcoming launch as we work through it with our various partners."

(Thanks for the tip Wiseclerk)

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