On 23 October 2019, FundingSecure Ltd, a regulated Peer-to Peer (P2P) firm, was placed into administration and has appointed CG Recovery Ltd as administrators.
Funding Secure operates a P2P lending platform through a website (https://www.fundingsecure.com/) facilitating crowdfunded loans which are used to fund the purchase and development of property, as well as pawn-broking style loans secured on items of value.
The administrators’ function is generally to act in the interest of the company’s creditors as a whole, and this must be done as quickly and efficiently as is reasonably practicable. The administrators will contact all affected parties in due course. For more information about the administration please use the following contact details:
- visit: www.cg.recovery.com/fundingsecure
- email: [email protected]
- write: CG&Co, Greg’s Building, 1 Booth Street, Manchester, M2 4DU
Who to contact if you are an investor
The administrators, CG Recovery Ltd, are now responsible for the business of Funding Secure Ltd. Among other things this means that they will seek to operate the P2P platform and credit investors with return of capital and interest as per the terms you have signed up to. Updates on how matters are progressing will be available on their website at (www.cg-recovery.com/fundingsecure).
What should investors do now?
The administrators will be contacting all investors in due course.
I have invested in an Innovative Finance ISA (IFISA) on FundingSecure’s platform – will the administration impact on the tax-free status?
The FCA is unable to comment on the tax status as this is a matter for HMRC. If customers have questions regarding tax on their investments they may wish to contact HMRC or seek independent financial advice. It is important to remember that IFISAs do not have Financial Services Compensation Scheme (FSCS) protection.
As a borrower, do I have to continue to repay my loan(s)?
Borrowers continue to be bound by the terms of the loan agreement facilitated by FundingSecure Ltd. If you have any questions please direct them to the administrators.
Do I need to use a third party to get my money back?
We are aware that some companies may approach customers of FundingSecure, offering to help them bring claims against the company. Be cautious if you are approached by one of these companies. For the vast majority of FundingSecure’s clients, there is no benefit in involving a third party in making a claim. Any customer who believes they have a complaint against the firm should contact the Administrator in the first instance.
Will investors be able to get compensation from the FSCS?
The activities of P2P firms are not covered by the FSCS.