Lendy writes to the FCA asking for help after a borrower threatens to sue
Lendy has appealed to the Financial Conduct Authority for help after a major borrower threatened to sue both the company and 5,000 of its investors, the Financial Times reports.
What is more the peer-to-peer property lender may already face millions of pounds of losses after analysis from the FT found that almost two thirds of borrowers failed to repay their loans on time.
The borrower in question has threatened a £10m damages claim against Lendy for unfairly giving notice on loans and for failing to receive further funds in line with its contract.
The case is said to impact 5,000 investors who lent £8.2m to offshore companies linked to a family trust in the British Virgin Islands, primarily to develop a residential project in Marylebone in West London.
In the letter Lendy wrote that “the situation is novel and is unfolding on a day-to-day basis, hence our urgent request” for a meeting to enlist “support”.
Lendy was founded six years ago in Portsmouth, and initially lent against marine assets like boats before moving into property.
A Lendy spokesman said: “At no point does Lendy ask for help or assistance from the FCA.
“The request for the meeting was part of Lendy’s regular procedures as an FCA-regulated firm.”