21 November 2017
visit www.aciworldwide.com

TrustBuddy investors to lose a chunk of cash on appointment of debt collectors

22 January 2016  |  6223 views  |  1 cash

Bankrupt P2P lender TrustBuddy says investors will lose a quarter of their cash after handing over £24 million of outstanding loans to a debt collection agency.

The Swedish lender, which was midway through a rights issue on the Nasdaq OMX exchange and had recently entered the UK market, filed for bankruptcy last year after it emerged that the company had been using lenders' capital to pay off soured debts. Subsequent investigations revealed a £3.5 million black hole in the company's finances.

Stockholm-based law firm Lindahl was appointed to oversee the winding up and recovery of customer capital after the company filed for bankruptcy in October.

In a statement, the firm says the appointed debt collection agency will pocket 25% of the value of all outstanding loans recovered in return for taking on the loan book.

Comments: (1)

A Finextra member
A Finextra member | 25 January, 2016, 22:02

Sic transit Gloria Fintech

1 thumb up! 1 thumb up! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

P2P lender TrustBuddy shuts up shop over financial irregularities

P2P lender TrustBuddy shuts up shop over financial irregularities

16 October 2015  |  8107 views  |  5 comments | 17 tweets | 10 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.solutions.lexisnexis.comvisit www.atos.net

Top topics

Most viewed Most shared
Ripple boss predicts central bank adoption of blockchainRipple boss predicts central bank adoption...
18912 views comments | 29 tweets | 31 linkedin
Singapore central bank open sources blockchain prototypesSingapore central bank open sources blockc...
12902 views comments | 16 tweets | 29 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
11450 views comments | 15 tweets | 42 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
9234 views comments | 26 tweets | 37 linkedin
Barclays warns of unprecedented online fraud this ChristmasBarclays warns of unprecedented online fra...
8736 views comments | 15 tweets | 31 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job