The quiet launch may be intentional - the community link does not work and there is a noticeable lack of legal documents and agreements which typically accompany financial sites. There are six borrower listings but all appear to be test listings. I attempted to register as a lender but did not receive a confirmation email. I was also unable to find a customer service phone number or way to contact the company through the site.
Here is their pitch to borrowers:
If you need a personal loan, a wedding loan, a small business loan, a debt consolidation loan or a school loan, Swap-A-Debt is your answer. Our Lender network makes the process very painless and very simple, while offering rates that are far lower than bank rates.
And the pitch to lenders:
On one hand, your bank pays you 2% interest on Your money; on the other hand, the same bank lends YOUR money to others at 8% to 18% interest rate. It seems a bit unfair. Don't you think? Swap-A-Debt makes the lending process simple and gives you the power to make well-informed decisions about whom to lend, so you can act as your own virtual bank! Use any Compound Interest Calculator, and you will see that in a 5-year period you can get 600% more on your money when you join Swap-a-Debt's Lender network.
The site touts five main features:
- Lend and Borrow Money on a peer-to-peer basis - this p2p lending action appears to be much like Prosper's auction style format. I was unable to find any mention of fees. Borrower's credit profile information is visible to all visitors unlike Prosper which only shows this information to registered lenders.
- Credit Rating - According to Swap-A-Debt, their credit rating system is "one of the quickest, most advanced, easy-to-use credit access systems in the industry." You can access information credit report information from all three major credit bureaus.
- Credit Doctor - This service is advertised to be able to settle collections and judgments for pennies on the dollar, remove inaccurate items from your credit report, increase your credit score and improve your credit. This service is "guaranteed" to improve your credit. The fee arrangement for the credit doctor service can be found here.
- Send Money - This service appears to be similar to PayPal.
- Payday Loan - This service may be outside of the p2p lending arrangement.
Swap-A-Debt's filings with the SEC occurred on the same day this month and within days of each other last month. If Swap-A-Debt received regulatory approval perhaps Prosper is not far behind.
Swap-A-Debt is a publicly traded company and trades under SWPD.PK. Marco Garibaldi is the CEO and Edward DeFeudis is the President.
Swap-A-Debt becomes the third p2p lending site to register operations with the SEC ahead of Prosper. Lending Club is the largest and most prominent. Pertuity Direct launched earlier this month.