The Lendy Action Group’s (LAG’s) crowdfunding campaign is less than £1,000 away from its £75,000 target, with two days left to go.
The group is made up of disgruntled Lendy investors who are raising money for a qualified solicitor to challenge a proposed ‘recovery waterfall’ which they believe would disadvantage some investors.
As of the early afternoon on Wednesday, LAG had raised £74,075 from 1,480 pledges – a steep increase from the £50,000 the campaign had raised just 15 days ago.
The dispute centres around whether Lendy customers are defined as investors or creditors, as the platform altered its business model in 2015.
Initially, investors lent to Lendy itself, which then gave the money to borrowers. But this was deemed not to be a P2P agreement, so in 2015 the lender restructured its model so that investors funded the P2P loans directly.
Lendy’s administrator RSM has proposed that the earlier group will be defined as creditors while the second group are investors.
This means they will be treated differently with regard to the distribution of recovered funds.
Following the backlash from investors, RSM applied to the court for legal advice on the proposed distribution waterfall model for the recovered funds.
The administrator said it had received comments from Lendy investors which it was considering and also noted that LAG will be representing the investors’ interests as part of the court application.