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Peer2Peer Finance News | May 27, 2019

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Lendy apologises for pace of loan repayments

Lendy apologises for pace of loan repayments
Marc Shoffman

LENDY has written to investors to apologise for repayment delays and has pledged to improve its governance, financial controls, liquidity, collections and compliance.

Investors on the peer-to-peer property lending platform have been concerned about high levels of arrears in recent months.

Furthermore, a borrower has threatened to sue both the platform and its investors for £10m, claiming Lendy unfairly put £8.2m worth of loans into default.

The claim – which originated in response to Lendy beginning recovery proceedings against the borrower – has been described by the platform as “vexatious” and with “little prospect of victory.”

Read more: Lendy continues hiring spree

Liam Brooke, chief executive of Lendy, has written to investors to apologise that repayments have been “significantly behind expectation.”

“We are well aware that some investors have expressed their concern, both in the media and on public forums, about the slow pace of repayments on some loans that they have made through the Lendy platform,” he said.

“We accept that there have been delays on repayments and we want you to know what actions we have taken to resolve those loans affected by deferred repayment.

“We have undertaken a thorough review of our recovery process to improve the speed at which recoveries are undertaken and ensure that we are using all the right tools to maximise recoveries.”

He said improving the performance of recoveries is a priority for Lendy, as is communicating better with investors.

Read more: Lendy widens access to wealth product amid IFISA launch