Lendy.co.uk a P2P lending service is going bankrupt after a few years of operations...
I spend a lot of time thinking about alternatives to #Banking
. I'm not really sure how I feel about this story yet. I first heard about it in the last few minutes of the FT #Podcast
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It appears that the Lendy company had been scaling operations up significantly since about January of 2016
. Financially, they looked honorable. Theoretically, they seemed as feasible as ride-sharing services. They knew people with money, and people that needed money, so they were a glorified dating service that matched up people with capital to enterprising people. What could go wrong?Lendy’s overdue loans hit 68% of book as FCA monitors £8m lawsuit
Two thirds of active loans issued by Lendy are now overdue while the peer-to-peer lender has also resorted to asking the Financial Conduct Authority (FCA) for help in a multi-million-pound contract dispute with a borrower.
I can't help but prejudge this by thinking that they took the higher risk type enterprises that banks wouldn't—probably for damn good reasons
—and with that higher risk, they didn't secure methods and plans to negotiate fair, reasonable, and equitable repayment of such risky endeavors. I sincerely hope they get their endeavor straightened out because alternatives to centralized banking are important in an egalitarian world.