Orca has handed control of outstanding peer-to-peer investments back to the P2P platforms in question, after closing its investment aggregator platform to retail customers.
Orca started life as a P2P research firm, going on to launch an investment platform in 2018 and an Innovative Finance ISA (IFISA) in 2019 that invests across a range of P2P platforms. Chief executive Iain Niblock (pictured) said the new Financial Conduct Authority (FCA) regulations made operating harder as it was difficult to complete the new affordability assessments on behalf of each investor.
IFISA investors were given the opportunity to transfer to a new provider or close their ISA and get their money back.
Niblock said investors began to receive money in October with the final amounts paid earlier this month.
However, those with outstanding loans in arrears or default have been told to deal directly with the platform that made the loan.
“Orca isn’t in a position to write off those loans but at the same time we can’t continue administering these accounts,” Niblock told Peer2Peer Finance News.
“We have handed back control to clients.”
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Niblock said each investor effectively already has an account with each platform that Orca invested money in on their behalf.
He added that users would now also have to deal directly with the platforms to access information such as tax statements as it no longer has control or access to the accounts.
Orca invested in loans on platforms including Lending Works, Assetz Capital and LendingCrowd.
Some platforms, such as LendingCrowd, have already been in touch with investors.
“LendingCrowd has contacted those who have lent money via Orca on our platform to enable them to manage their accounts directly with us,” the platform said in a statement.
“This means that they will have full control of any funds, including those held within an IFISA, on the LendingCrowd platform.”