The Lendy Action Group (LAG) and the FundingSecure Action Group (FSAG) have asked their members to sign their backing to future letters with the Financial Conduct Authority (FCA), Treasury and other groups by 17 May.
LAG said that the correspondence has more weight if it is supported by a united group, rather than individuals, so it wants to declare who has signed up to the FSAG and LAG groups and that the groups have their unequivocal permission to write/communicate on their behalf.
The groups are asking for approval in writing to FSAGFCA@yahoo.com. Lenders have been asked to give their first and last name, say they give their full support to the FSAG and LAG and if they live in the UK and feel comfortable doing so, to give the name of their MP, his/her political party and constituency.
The groups said any questions should be sent to the same email address and asked members if they have funds in Lendy or FundingSecure to divulge the amount that was frozen as of 1 May 2021 in each company and state whether it is Lendy or FundingSecure.
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The LAG and FSAG asked all those lenders that wish to have their names associated with these proposed letters, to give FSAG their written consent to add their name at the bottom of the letters the groups are to write.
They asked members to forward the information about the opt-in for letter to any other Lendy or FundingSecure investors they know that aren’t part of the groups.
The groups told their members to only opt-in if they are fully satisfied with the proposed way forward and said if they do not feel happy, or are not in 100 per cent agreement with the terms, then to please not support it.
The groups said the opt-in for their letters of correspondence is not an alternative to everyone making their own representation, so investors should also continue to chase up the FCA on their own accord as every letter they receive adds to the chance of success.
The LAG and FSAG said a copy of the letter(s) will not be published by the FSAG, as last time a letter was published in good faith on the platform for the lender’s information, the joint administrators quoted the letter in court.
“We are to write to the above letters of complaint highlighting the multiple failures of the FCA in regards to both Lendy and FundingSecure and seeking a public inquiry into the purported lack of supervision demonstrated by the FCA in regards to both these companies,” the LAG and FSAG said in a post on the P2P Independent Forum.
“This is especially pertinent for FundingSecure, where the FCA approved a change of control procedure in October 2018. We can only hypothesise that not all the protocols could possibly have been followed by the FCA prior to granting the change of control.”