Lendy Ltd was a UK-based peer-to-peer (P2P) lending platform that operated from 2013 to 2019. The platform facilitated loans to property developers, with investors providing funding in exchange for returns on their investment. In 2018, Lendy faced financial difficulty and went into administration in May 2019 owing approximately £165 million to investors.
Following an investigation by the Financial Conduct Authority (FCA), it was found that Lendy had breached several FCA regulations and failed to properly manage its loan book. As a result of Lendy’s collapse, many investors have suffered significant financial losses.
The FCA has since tightened regulations around the peer-to-peer lending industry to help protect consumers. Claims are currently being handled by the Financial Ombudsman Service but are not being accepted by the Financial Services Compensation Scheme (FSCS). However, we anticipate that their doors will be opened shortly to receive these claims.