- any losses would not be covered by the Financial Services Compensation Scheme.
- FCA is attempting to clamp down on poor practices in the peer-to-peer sector after finding that many investors did not understand the risks involved in funding loans
- FundingSecure offered retail investors annual returns of up to 16 per cent by funding property development and pawnbroking loans.
- did not use borrowers’ credit scores when making lending decisions, instead relying on the value of the assets used as security
And defaults would rise precisely when the value of the collateral (only variable taken into account) would be crashed as well. Super pro-cyclical.
Wondering if those working for the company understood this though, or if people need to maintain certain distance to capture the scam nature of the biz model.
FundingSecure was backed by BlackRock, not sure who invested in Lendy. These “backers” will lose all of the investment.
” UK property finance company Lendy collapses
Failure raises prospect of multimillion-pound losses for investors who lent to developers”
“The sector has experienced several high-profile scandals and collapses in the US and Asia, but only a handful of small companies such as Collateral, TrustBuddy and Be The Lender have encountered significant problems in Europe. ”
- AZ overturns election judgement to verify signatures
- Fifty More US Banks on the Verge of Failing
- A Full Blown US Conflict With Iran at Israel’s Insistence Is Approaching
- I am surprised a Japanese magazine would allow this to run, but it is correct…
- Inter-Bank Lending Has Stopped And We’re On The Verge Of A Crash
- “The Banks Are Melting”, And Signs Of A Major Credit Contraction Are Already Starting To Emerge
- ‘Largest Satanic Gathering in History’ Will Require Masks and Vaccinations
- New York Times: “Stolen Valor: The U.S. Volunteers in Ukraine Who Lie, Waste and Bicker. James Vasquez, in fact, was never deployed to Kuwait…”
- Bibi Netanyahu Squashes Embarrassing Anti-Christian Bill
- The market is being held up by 7 companies