Good article.

For people based in the UK, there is a similar service called Zopa. I have been investing (i.e., making funds available for loans) there since September 2008 - makes me a pioneer. My investment was small and the returns have been way better than a bank deposit (even after accounting for bad debts)

Zopa is open for UK residents only (UK bank account and proof of residence). They have come a long way since I started especially on managing credit risk. I have never taken out a loan - I can only comment as an investor. In the early days I spent quite a bit of time choosing which class of risks to take (A, B and C). With the new Safeguard Fund one does not need to worry - Zopa looks after everything

I would suggest it is a strong way to build up regular savings setting aside a specific amount each month or each time you have spare cash. However, you do have to bear in mind that loan durations are quite long - 3 to 5 years - so it is absolutely a savings vehicle for the longer term.

Check it out here http://mymark.mx/Zopa - an affiliate link