P2P lenders have been debating the definition of default as many investors seek standardization; Peer-to-Peer Finance Association (P2PFA) members define a default when a loan is 45 days overdue and begin recovery collection at 120 days; non-P2PFA platforms have varying standards that fit with their business models, ranging from two consecutive months to 180 days to three missed payments; in the banking industry banks do not have a standard definition, focusing more on delinquent payment collections than actually labeling a loan in default. Source
