Lending Works has only received one complaint from its 7,000 retail investors after implementing its normalisation period.
Lending Works has also suspended the use of its secondary market, and will temporarily divert all of its investors’ interest payments into Lending Works Shield, its provision fund.
“We’re delighted to report that the introduction of the normalisation period has been a success,” Nicholas Harding (pictured), chief executive of Lending Works said.
“The most important consideration is always the impact on customers, and customer feedback has been very encouraging.
“By far the majority of the calls and emails we have received have been from supportive customers that have praised our actions in dealing with the knock-on effects of Covid-19.
“Of almost 7,000 retail investors, we have only had one formal complaint on the matter – which further highlights how positively customers have received the announcement.”
Harding added that firms should be supporting their existing portfolios and ensuring that new lending is risk-averse, prudent and appropriately priced so that new loans perform well for investors.
“All lending sectors will suffer due to Covid-19,” said Harding.
“I feel it would be foolishly optimistic if a firm was not preparing for the worst.
“That said, any crisis will eventually end, and when this one does the winners will be those that are ready to assertively grow market share. And it this time that Lending Works is preparing for.”