newsdog Facebook

Investors to lose out in Lendy crash

News Summed Up 2019-12-03 05:30:00

Lendy, authorised by the Financial Conduct Authority, experienced a sharp rise in defaults before its collapse in May, at which point about 9,000 investors were owed close to £152 million AlamyPeople who invested in businesses via a failed peer-to-peer platform have discovered their money was not ring-fenced as promised, raising new questions for the City regulator. Lendy investors, who are owed more than £150 million, expressed shock and anger after administrators told them to brace for a much bigger hit than expected because a significant proportion of money they believe they are owed has been earmarked to pay off insolvency practitioners and creditors. The revelation has prompted dismay as it appears to fly in the face of the principles of peer-to-peer lending, in which investors’ money should be protected in the event of a platform failure so that it is not used to pay debts and the administrators’ fees. Lendy, authorised by the Financial Conduct…