Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_1409239679
June 3 2019

4th Way ‘not surprised’ by collapse of ‘opaque’ Lendy

Marc Shoffman Industry News, News 4th Way, BondMason, Lendy, p2p, property

LENDY’S collapse highlights the issue with opaque investing, peer-to-peer lending analyst 4th Way has warned.

Neil Faulkner, co-founder of 4th Way, said the closure of Lendy was unsurprising, highlighting that it has previously failed to disclose information for the website’s comparison tables.

“While there are bound to be some good opportunities that are shrouded in mystery, it is typical of a great many opaque investment opportunities for them to fold,” he said.

“Indeed, every one of the most notable closures since the beginning of P2P lending have been from opaque, sometimes secretive and misleading, providers.

“The less notable closures have typically wound down so gently that they were hardly noticed by the press.

“Opaque investments also often land investors with losses before closing.”

Read more: Lendy administrator warns withdrawal restrictions will continue

Faulkner added that BondMason, which has also announced plans to close its alternative investment fund, had also not provided information on its people, processes and results.

However, he praised the alternative finance investor for admitting that it could not compete any longer.

“The greedy, head-in-the-sand option would be to lower interest rates and keep collecting fees as the middleman, or to extend lending to riskier types of loans that BondMason and its lenders don’t understand,” he said.

“Not all P2P lending sites behave with that level of responsibility.”

Stephen Findlay, chief executive of BondMason has rejected claims that the firm was opaque.

“We appreciate Neil’s comments about our actions being responsible and being in the best interests of our clients,” he said.

“We have always sought to put our clients first.

“But we have to disagree with Neil that our business has been opaque. We engage with clients and prospective clients in an open and clear way, as we have done from the outset.

“We contacted Neil in March 2016, shortly after we launched, and when he started his 4th Way service, to offer him a call to discuss our proposition.

“He didn’t respond to our email, and over the past three years he did not contact us to discuss our proposition in detail.

“Nonetheless, he could have found much of the information he desired regarding our ‘people, process and results’ on our website.

“Had he done his research, he may have found us less opaque.”

 

Victory Park Capital Specialty Lending NAV soars despite Woodford exit Lendy investors launch action group to ensure ‘fair representation’

Related Posts

THP_7598 (1)

Global News, Industry News, News, Property, Top 3

Property Bridges launches auto-invest product

Person Flying Car Over Declining Stacked Coins

Industry News, News, Top 3

Second charge mortgage and car finance markets contract

woman using laptop, searching web, browsing information, having workplace at home  / soft focus picture / Vintage concept

Industry News, News, Top 3

Kuflink launches search feature for select invest deals

Popular posts:

  • JP Morgan chief predicts shift to non-bank lending
  • FCA has increased surveillance over last 12 months
  • P2P veteran joins bridging lender
  • Recovery loan scheme opens today
  • SMEs warned they could be excluded from recovery loan scheme
  • Every IFISA that is open for investment right now
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by