Peer to Peer lending set to be regulated

Interesting article on peer to peer lending which is due to have some regulation in the UK.

http://www.lovemoney.com/blogs/the-economy-politics-and-your-job/politics-and-finance/18741/peertopeer-lending-set-to-be-regulated?source=1000564

Probably most importantly from a compensation perspective should a firm fail - that would be an important backup for any investor. Of course it is something everyone thinks about since the near fall of Halifax/RBS and the run on Northern Rock.

These sort of businesses are exactly the type of competition the mainstream banks need - cut out the middle man, who has for too long made too much money and offered poor loan deals.