21 January 2017
visit http://www.wolterskluwerfs.com

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

22 January 2016  |  5799 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  |  7314 views  |  5 comments | 17 tweets | 10 linkedin

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comhttp://www.financialcrimerisk.fiserv.com/aml?r=finextra

Who is commenting?

Top topics

Most viewed Most shared
Banks face big profit loss to digitisation - McKinseyBanks face big profit loss to digitisation...
16582 views comments | 94 tweets | 113 linkedin
Seven banks plan blockchain platform for SMEsSeven banks plan blockchain platform for S...
12958 views comments | 48 tweets | 44 linkedin
Accenture beats Brexit blues with largest-ever London startup programmeAccenture beats Brexit blues with largest-...
11119 views comments | 31 tweets | 20 linkedin
US fintech firms join forces to push data sharing via APIsUS fintech firms join forces to push data...
7331 views comments | 41 tweets | 40 linkedin
HSBC forms tech advisory boardHSBC forms tech advisory board
6574 views comments | 21 tweets | 23 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job