Protecting your money

Protecting your money is our top priority, which is why we take the belt and braces approach. The Lending Works Shield offers threefold protection including a meticulous underwriting process, a Reserve Fund which covers missed loan repayments and a unique insurance arrangement which helps protect against losses due to borrowers defaulting.

  • Fraud or cybercrime

  • Accident, sickness or death

  • Redundancy or loss of employment

100% Money safely returned to lenders

Insurance cover

Unique to Lending Works

Reserve Fund

While the Lending Works Shield helps to protect our lenders, it does not remove our borrowers’ repayment obligations which remain due and recoverable by Lending Works. We partner with a reputable debt collection agency to help recover loan arrears.

The Lending Works Shield has ensured every capital and interest payment due to our lenders has been returned on time, however it does not provide a guarantee against losses on your loans. As with all forms of lending your capital is at risk.

The Shield in detail

The Lending Works Shield offers unrivalled lender protection courtesy of our unique insurance. However, this insurance is also underpinned by robust processes and other additional layers of protection in order to further safeguard your money.

Our Unique Insurance

We have gone to great lengths to find the best possible partners to safeguard your money. Our insurance - the first of its kind in peer-to-peer lending - is backed by three of the largest UK household-name insurers. On top of being regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), these A and B-rated UK insurers each have a balance sheet of more than £2bn. This means big, stress-tested insurers are protecting your money, rather than relying on a reserve fund alone.

Our insurance helps protect against:

Fraud and cybercrime

Loss of employment

Accident, sickness and death

Fraud and cybercrime

Our fraud prevention systems combine the knowledge of a broad group of industry experts including identity verification specialists, credit reference agency experts and Cifas, the UK’s leading fraud-prevention agency. However, in the unlikely event that our robust and sophisticated systems are penetrated and fraudulent applications are approved, our insurance provides an added layer of protection.

Loss of employment

Whether small numbers of borrowers default because of isolated unemployment issues, or large numbers of borrowers default because of systemic economic problems - such as a recession or financial market crash.

Accident, sickness and death

Our insurance helps protect lenders from the risk of missed payments and borrower defaults due to unforeseen circumstances such as accidents, sickness and death. While extraordinary situations such as these are quite rare, they do happen.

Other safety features include:

Meticulous underwriting

Reserve Fund

Ring-fenced Trust

Meticulous underwriting

Underpinning the Shield, our team of financial services experts ensure that only the most creditworthy borrowers are approved. To ensure this, they utilise the most effective underwriting techniques, including:

  • Credit checks - We perform a detailed review of credit files
  • Affordability checks - We check income, outgoings, bank accounts and debt
  • Identity checks - We use sophisticated software to verify identities
  • Fraud checks - We’re a member of Cifas and work closely with them to help prevent fraud

Reserve Fund

The Reserve Fund is held in cash, within an interest-bearing segregated trust account with NatWest, and is used to compensate lenders for any individual missed or late payments (arrears), helping to ensure you receive exactly what you’re expecting - on time. All monies within this account are kept exclusively for the purpose of protecting lenders against losses.

The Reserve Fund is topped up using a risk-weighted portion of the fees payable by each of our borrowers, and is maintained at a level sufficient to cover our expected rate of missed payments.

Ring-fenced Trust

The Trust is a legal structure specifically designed to ring-fence all your funds from our day-to-day operations in a segregated client bank account. This Trust is administered by a not-for-profit company, ensuring total transparency and security.

In the unlikely event Lending Works ceases trading, an agreement with a back-up services provider is in place, and this entity would manage the Trust, collect the debts due, and return all money owed to lenders.

LoveMoney recommends Lending Works

“'Safest' peer-to-peer platform just got safer”

Lending Works is a member of the P2PFA


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Lending Works wins Highly Commended at Moneywise Customer Service Awards 2015

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over 3 years

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over 5 years