Many view peer to peer lending sites with distrust which brings us to ask-are they effective? If you are a borrower then p2p lending sites are GREAT and effective. The lenders, though, tell a different story. One of the majorly cited problems with the sites is the inability to keep time-pay the lenders, and poor policy-making. Policies such as a fixed amount of income makes it hard for those turned down by banks and students to work with the sites. There have been cases where the site fails to deliver the money to lenders in time causing inconveniences which makes the p2p lending services lose the capital. There have also been cases where the companies close down after losing their money because of unreliable borrowers. This is after they lend money to bad borrowers who fail to honour the commitment to return the money. Many people have lost their money this way and they consider it charity. The companies also face credit crisis where they have no money to give the borrower with the regulatory pressure on them making them to close. This makes many of the p2p lending websites plainly ineffective.