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
Lawyer explained to the client about the law that must be brought against the court case.
November 13 2020

FundingSecure administration held up by pandemic and fee dispute

Marc Shoffman Industry News, News, Top 3 CG&Co, Funding Secure

The one-year anniversary of FundingSecure’s collapse has been marked by an extension to its administration, alongside court proceedings over a fee technically owed to the company from each loan.

Appointed administrator CG&Co had a three-year extension until October 2023 approved last month after it argued that the pandemic was delaying recovery and realisation attempts.

Court proceedings also started in October, regarding a five per cent redemption fee owed to the peer-to-peer pawnbroker on each loan, which is mentioned in its terms and conditions.

Read more: LendingCrowd not reopening to retail investors for ‘foreseeable future’

Investors have argued that they were not aware of this and others say it had been waived on various occasions.

Documents from CG&Co show it has sought legal opinion from three independent solicitors who say the fee is correctly levied and payable. The issue will now be decided by the high court in Manchester.

Evidence from each side on why the fee should or shouldn’t be paid is due by the end of this month and a legal direction will be issued 28 days after.

Read more: UK P2P lenders likely to hold off on public listings

FundingSecure entered administration in October 2019 after being overcome by litigation surrounding inappropriate allocation of investor money and a separate claim regarding fraud on a portfolio of art loans.

CG&Co identified several issues with how the platform was run including client money failures and loans being mis-labelled as performing when they were in default.

An update from CG&Co in May 2020 said £11.9m has been recovered so far, out of total investments of £67.5m.

Read more: P2P lending administrations ‘could take several years’

FCA expects a “significant” number of firms to fail in the months ahead Huddle Capital announces premiership rugby partnership

Related Posts

Woman putting coins on stack with holding money, Concept business, finance, money saving and investment

Industry News, News, Property, Top 3

CapitalStackers reaches £100m investment milestone

Businessman separates the wooden puzzle with a picture of money. The concept of financial management and distribution of funds. Saving and investing. Property division. Legal services.

Industry News, News, Top 3

Treasury launches £120m London Capital & Finance redress scheme

Business team greeting and finishing up a meeting, Two Business handshake of collaboration after discussing in team good deal of Trading contract for both companies, Finance, accounting, investment

Industry News, News, Top 3

Starling Bank ready to acquire a lending business

Popular posts:

  • Business Loan Network appoints administrators
  • Assetz Capital launches new bridging product
  • Funding Circle chief turns down £190,000 pay rise
  • PwC brings fintechs together for collaboration
  • FCA director says “there is more change to come”
  • New BBB boss was warned about “glass cliff”
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