Lending Club is a person-to-person lending website that's intended to be an alternative to banks in which both borrowers and investors can receive attractive rates. For the investors, there's no rate guarantee and there's no FDIC insurance. The rates depend on borrowers not defaulting.
Jonathan at MyMoneyBlog has been tracking his returns at Lending Club since 2007, and he has a new post which provides an update
. His data shows that returns keep dropping for loans going from 1.5 to 3 years old. He reviews the data and discusses claims by Lending Club that new standards should help with future loan performance.