When you invest in debt via peer to per lenders like Prosper and Lending Club you aren't actually buying the persons debt you are purchasing a registered securi

When you invest in debt via peer to per lenders like Prosper and Lending Club you aren't actually buying the persons debt you are purchasing a registered security from the respective p2p company who is the actual holder of the debt. The security is structured in such a way that only the p2p company has the right to collect on the debt should the debtor default.