Lendy sends apology to investors

In an email to investors the peer-to-peer lender admitted it can make “substantial improvements” to its recovery process.

Lendy sends apology to investors

Lendy has emailed an apology to its investors for the repayment process being “significantly behind expectation” on some loans.

The peer-to-peer lender admitted it can make “substantial improvements” to its recovery process, while it identified governance, financial controls, liquidity, collections and compliance as areas it’s looking at.

Lendy said: “We are well aware that some investors have expressed their concern, both in the media and on public forums, about the slow pace of repayments on some loans that they have made through the Lendy platform.

“We accept that there have been delays on repayments and we want you to know what actions we have taken to resolve those loans affected by deferred repayment.

“We have undertaken a thorough review of our recovery process to improve the speed at which recoveries are undertaken and ensure that we are using all the right tools to maximise recoveries.

“We have identified areas where we can make substantial improvements to our recoveries process which is why I am writing to you now.

“The core areas that have been addressed are: Governance, Financial Controls, Liquidity, Collections, Compliance[.]"

Lendy was in the news in October after appealing to the Financial Conduct Authority for help after a major borrower threatened to sue the company and 5,000 of its investors.

The email added: “Whilst improving the performance of recoveries is a priority for Lendy, we are also looking to enhance the quality the communications we provide to investors, following the concerns you have raised.

“I hope this will bring assurance that we are absolutely committed to making improvements in our service and faster and better recovery rates are at the core of that process.”