[Sean Cash]

move over IRA? That is dangerous territory.

Sounds wonderful...until you have a couple defaults. Then these investors are all of a sudden ignorant, unsophisticated and were tricked. Try telling FINRA in an arbitration that investing retirement funds into a deal where merchant has 500 credit, 10 NSF's and a lien was a sound, responsible & suitable investment.

Lending Club is already regulated by the SEC. Each loan is booked as a security and each security is issued with a prospectus about the deal. Each prospectus tells you about credit score, liens, income, and other stuff. It's the same thing as buying stock.

There are defaults but their loans are classified on a scale of A to G (G having the highest rate of return, highest risk, and highest default rate). Even class As have defaults, just fewer.