Why Did The Regulator Authorise Lendy?
Many investors are blaming the Financial Conduct Authority (FCA) for playing a part in their loses after it had to admit to authorising Lendy, despite concerns about its governance, systems and controls. The peer to peer lender collapsed on 24th May 2019 after struggling to cope with all the defaulted loans.
Who Are Lendy?
Lendy was first launched in January 2013 and gained FCA regulation on 11th July 2018. As a peer to peer lender it, paid returns of between 9-12% per year, which were usually between 3-12 months. The Loan book was valued at £152m, split across property development and bridging loans, which can be very high risk.
Lendy Under Microscope
Lord Myners, a former minister under Gordon Brown has put Lendy under the microscope and has asked if the FCA intends to issue compensation to investors. Lord Myners has questioned how Lendy was still able to pay dividends to its owner, Liam Brooke, despite the firm being investigated by the regulator.
Lord Myners has asked what actions the regulator took to protect people after they were made aware of issues with another peer to peer lender Collateral UK. He is also looking at trends between the collapse of Lendy, Collateral and London Capital & Finance.
What Are My Options?
If invested with Lendy and have suffered loan defaults, contact us today on 0800 061 4585 to speak with one of our highly experienced claims experts. We are ready to help you make a successful compensation claim.
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