29 May 2017
Visit cib.db.com

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

22 January 2016  |  5997 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  |  7654 views  |  5 comments | 17 tweets | 10 linkedin

Related blogs

Create a blog about this story (membership required)
visit vasco.com/news/PSD2-compliant-solutionsvisit www.niceactimize.comvisit www.response.ncr.com

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
14802 views comments | 54 tweets | 82 linkedin
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
8293 views comments | 12 tweets | 24 linkedin
R3 raises $107mR3 raises $107m
7834 views comments | 17 tweets | 16 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
7640 views comments | 13 tweets | 22 linkedin
Digital payments to drive social justiceDigital payments to drive social justice
7639 views comments | 24 tweets | 12 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job