RUMOURS of restrictions on Lendy’s regulated activities have been confirmed by the Financial Conduct Authority (FCA).
An update to the City watchdog’s financial services register shows that it has imposed an asset restriction on the peer-to-peer property lending platform.
The notice on Lendy’s listing said that the firm must not “in any way dispose of, deal with or diminish the value of any of its assets and must not in any way release client money without in either case the prior written consent of the authority.”
This update confirms rumours that Lendy had been ordered by the regulator to seek its permission each time it wants to make a repayment.
A spokesperson for Lendy said it was not in a position to discuss the platform’s dealings with the FCA.
Lendy has been plagued by rising levels of arrears on its platform.
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 was triggered by Lendy beginning recovery proceedings against the borrower – has been described by the platform as “vexatious” and with “little prospect of victory.”
It also emerged earlier this month that several senior members of staff who were appointed last year have now left.