MoneyThing has been put into receivership because it cannot afford the costs of litigation with a borrower.
The peer-to-peer business lending platform announced in December 2019 that it was ending its activities, blaming declining investor confidence and fierce competition in the low-risk business loan market.
But earlier this month, he warned that he may have to enter administration if it has not reached a settlement agreement with a borrower on whether it is owed a portion of an overdue loan.
“The directors of MoneyThing made this decision in order to protect the interests of the creditors of the companies as a whole,” MoneyThing said in an announcement on its website.
“We took into account the more difficult business conditions encountered in 2020 as well as litigation from a MoneyThing borrower.
“The co-directors will take responsibility for managing the affairs of the companies. They will continue the orderly liquidation of the remaining MoneyThing P2P loan portfolio, repay the funds to the lenders and conclude the business activities of the company.
“The appointment is not expected to have a significant impact on lenders or borrowers.
“The existing directors of MoneyThing will continue to provide full support to ensure a smooth transfer and will remain involved in the operational activities of the company, under the responsibility of the joint directors.”
Tom Straw and Milan Vuceljic of Moorfields Advisory have been appointed joint directors.
Investors will continue to be credited with principal and interest in accordance with the terms they have subscribed to, with updates continuing to be provided through the Lender Portal.
Investor inquiries should be directed through the P2P platform as usual, but if they have specific questions regarding the administration, they can contact the joint administrators by sending an email to: [email protected] or by writing to: Moorfields Advisory, 88 Wood Street, London EC2V 7QF.
The Financial Conduct Authority, which also announced the administration, said it was aware that some companies could approach MoneyThing customers, offering to help them file a complaint against the company and warned consumers to be cautious if approached by one of these companies.
He said that for the majority of MoneyThing’s clients, there is no benefit to involving a third party in presenting a complaint and any client who thinks they have a complaint against the company should contact the co-administrators first. place.