The Lendy Action Group (LAG) has raised over £50,000 for its legal fund with just 17 days left to reach its £75,000 target.
After peer-to-peer lender Lendy entered into administration in May last year, a group of disgruntled investors set up an action group the following month.
Then in January, LAG launched a crowdfunding campaign to raise money for a qualified solicitor to challenge a proposed ‘recovery waterfall’ which they claim would disadvantage some investors.
The fund was originally looking to raise over £25,000 and as much as £75,000, but after smashing the £25,000 target early on, the group has been setting its sights higher.
As of this morning it has reached £51,231 from 984 pledges with 17 days left of the crowdfunding campaign to hit the £75,000 target.
Lendy has operated via two structures – it began with model 1 whereby investors lent to Lendy itself which then gave the money to borrowers, and then the lender switched to model 2 from 2015 which involved investors starting to fund P2P loans directly.
RSM has decided that the model 1 group will be defined as creditors while the model 2 group are investors.
This means with regard to the distribution of recovered funds, they will be treated differently.
There is a minimum donation of £5 to the fund but LAG has suggested a contribution of £1 for each £1,000, however, has also said that investors should contribute as much as they afford.
Last week, following the backlash from investors, RSM applied to the court for legal advice on the proposed distribution waterfall model for the recovered funds.
RSM said it had received several comments from Lendy investors which it was considering, and took note that the action group will be representing the investors’ interests as part of the court application.