PROPERTY-BACKED peer-to-peer lender FundingSecure has tightened up its processes so that investors who will no longer receive a day’s notice on renewals.
Last month the P2P platform emailed all its investors to inform them of the changes to the process.
Previously the firm had given investors a day’s notice prior to issuing a renewal. This allowed investors additional time to select whether they wish to roll over their investments.
“Unfortunately, this has created some operational issues as the new loan commences one day after the interest has been received,” said the email.
Read more: A rewarding opportunity
“Therefore, with immediate effect, we will no longer provide a day’s notice on loans that are due or past due. Investors will still have six months to decide and select their renewal option prior to the loan falling due.
“An email notification will still be sent out, but it will be for a loan that is coming ‘later that day’.”
FundingSecure said that in cases where a loan is renewed early, it will still provide 24 hours’ notice.
“It was mainly because there was a large number of investors who felt it was unnecessary because they were getting an email one day but were unable to do anything about it until the following day,” Nigel Hackett (pictured), director at FundingSecure, told Peer2Peer Finance News.
Read more: FundingSecure hits £220m lending milestone
“Unfortunately, if someone decided to renew a loan we had to fund a day’s interest, which was unfair on borrowers and investors.”
Hackett said that only two investors had contacted the company to request a return to the old system whereas over 20 had shown their approval.
In addition, he said FundingSecure was always looking at ways to improve its system but the priority for all changes was to maintain the site’s security and safety.