Page last updated: 01 July 2021

Peer-to-peer lending borrowers


Normally if you want to borrow money direct from the public, the FMC Act requires you to issue a product disclosure statement.

  • You do not need to prepare these documents if you are using a licensed peer-to-peer lending provider. Instead, you will provide information about your loan request to your provider so they can present your request for investors to read.
  • Licensed providers are not obligated to accept you as a borrower. They will run some checks on you and if you've got a bad credit history they may decide they won't help you find money.
  • If you are accepted, you will become a client of the peer-to-peer lending service. The provider will ask you to sign a client agreement that details what you need to do so the provider can monitor and check you.
  • The service provider can charge for their services.


Fair dealing

You will need to comply with the general fair dealing provisions in Part 2 of the FMC Act. The basic obligations you will have are:

  • being who you say you are.
  • not providing inaccurate address and contact details.
  • being honest about what you are going to use the money for. 

More information about Peer-to-peer lending service providers obligations and compliance.