Lendy enters administration

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Peer-to-peer lender, Lendy  has collapsed and Administrators at RSM were appointed by court order on Friday afternoon.

The lender is under investigation by financial regulators, and the Financial Conduct Authority (FCA) said the appointment was made “following action taken by the FCA”. “There is an ongoing investigation into the circumstances that have led to this action.”

There were concerns about the firm’s ability to meet the standards required of regulated firms, and the regulator tried to help it avoid a collapse.

The failure to do so means tens of millions of pounds of retail investors money could be lost.

Lendy has in excess of £160m in outstanding loans, and more than £90m is in default.

An update on Lendy’s website said it had limited information for creditors as millions of pounds of loans are behind on repayments, but not yet classed as non-performing.

RSM said it was “working closely with the FCA” and would outline its proposals “in due course”.