Home > Uncategorized > Lendy. The serious danger to PTP lending

Lendy. The serious danger to PTP lending

Cowes, Isle of Wight, UK. 6th August, 2018. Crews and spectators at the Cowes week annual sailing regatta on the Isle of Wight enjoying the beautiful weather. Racing postponed until after lunch at the regatta due to a lack of wind but racing resumed after

The collapse of PTP lender Lendy has been well documented and its possibly the most high profile case in a disturbing string of recent failures. That is going to have an adverse effect on investors of course but more details of the administration have seeped out which could be very damaging indeed.

Investors are having to be braced for the fact that they could lose a considerable proportion of their investments. Peer to peer investments are “ring fenced” but this is not cast iron. In Lendy’s case considerable contracted fees are being taken out. The Telegraph article linked above gives the details but other media reporting is more sketchy

And thats the point. How many of you have taken a look at the linked article and examined the actual detail?

The key here is the headline news. I would be confident that other PTP lenders have more secure ring fencing but the detail would need examining. The problem for those lenders is to now alter perception. Potential Investors will simply read about the losses at Lendy and quite probably move on. They will consider that they know all they need to know. To add to the toxicity, a very prominent PTP lender has a gained a reputation for acting in a very hubristic manner towards investors.

This is bad news. PTP lending is a very important development in the world of finance and it needs to thrive but it’s going to be an uphill challenge.

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