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Peer2Peer Finance News | August 25, 2019

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Rebuildingsociety reassures investors over account security

Rebuildingsociety reassures investors over account security
Marc Shoffman

REBUILDINGSOCIETY has been allaying investor concerns after withdrawals on the platform were sent to users under a different account name.

Investors withdrawing funds from the peer-to-peer business lending platform yesterday saw the money sent from Huddle Capital, prompting confusion on the P2P Independent Forum.

A spokesman for Rebuildingsociety told users on the P2P Independent Forum that Huddle Capital was an appointed representative of the company, but this created more worries that client accounts were accessed without user permission, a claim denied by the platform.

“The funds have been correctly attributed to all recipients,” a spokesperson said.

“There was an error in processing the transaction. This has already been addressed following company policy and there is no need for lender concern.”

The platform later added that no personal details were passed to any other company.

“Funds were sent to Rebuildingsociety’s lenders from a Rebuildingsociety controlled client account with the incorrect sender account details,” it added.

Daniel Rajkumar, managing director of Rebuildingsociety, told P2P Finance News, this was not an IT glitch, but a human error.

“The withdrawals were from a Rebuildingsociety account, labelled Huddle CLNT,” he said.

“We are introducing dual authorisation from appointed representative accounts as a measure to mitigate recurrences.”

The platform gained full authorisation from the Financial Conduct Authority in February and has since launched an Innovative Finance ISA.

It currently offers average interest rates of 9.8 per cent and has lent £11.6m to date.

It has been a tough time recently for IT glitches on P2P platforms. Investors were unable to make deposits on Collateral earlier this week, while Lendy has had similar issues. Both have since been resolved.