Published on November 7th, 2019 | by Jenny0
The latest news in the world of peer to peer lending
As the peer to peer market faces increased scrutiny due to the issues around Brexit and the UK’s future relationship with the EU many of the industries providers are struggling to keep the confidence of investors. Here is some of the latest news in the peer to peer world to stay up to date with.
Funding Secure enters administration
Funding Circle has entered administration with CG Recovery Ltd appointed as the administrator. The platform has been described as one of the country’s most secure peer to peer platform and had an estimated 3,500 investors with the company.
For those who have the money within the company, there has been a dedicated email set up to try and keep investors updated on the status of their money within the business. It is currently too early to say if investors will get their money back from the P2P platform.
Some have expressed concern, not over the money tied up in the loans, but others are more worried about the status of the personal data needed to set up a funding circle account. The platform requires a copy of legal documents like bank statements and ID’s to be scanned in order for the account to be sure.
Funding Circle investors are still struggling with the withdrawal of funds
For the past years, investors in this peer to peer platform have struggled with the withdrawal of their capital from the site. With some entering the 134th day of waiting, funding circle have also added a 1.25% withdrawal fee for the site. This has been seen by many investors as somewhat underhanded and, similar to crowdfunding property lender Ratesetter, is an example of a company adding fees retrospectively for investors.
China takes a strong stance against the peer to peer market
The market for peer to peer investments has not flourished everywhere, and China is one of the latest countries to start clamping down on providers. Over 40 peer to peer businesses have been forced to close down in the country. Part of the move has been forced by the nation’s financial hub of traditional banking institutions.
Stay here to keep up to date with the latest peer to pee
The world of peer to peer lending is constantly changing with new developments weekly. We are still in the relative infancy of the industries lifecycle, so staying up to date with the latest news is essential if you have any money within the P2P platforms. Please get in touch if you have any further questions.