Lendy investors have nearly £2.5m sitting in unclaimed funds
More than 10,000 Lendy investors have unclaimed available funds in their platform account, totalling nearly £2.5m, the administrator has revealed.
An update from RSM said that there are 7,987 investors which are anti-money laundering (AML) verified and have the withdrawal function enabled, with a total of £1,032,048 sitting in their accounts.
Another 588 investors are AML verified but unable to withdraw funds, for example because there is no bank account linked, RSM said. These funds total £808,675.
And finally, there are 1,506 investors that failed the verification process and are unable to withdraw £618,487.
“Investors are encouraged to check their Lendy platform accounts and, if available, process a withdrawal request for the entire balance shown as your ‘available balance’,” RSM said.
RSM said that it will continue liaising with individuals who have not fulfilled the AML checks but warned that these are a manual exercise so will take some time to complete.
It urged people who have changed their bank account details to get in touch and provide evidence of the changes.
Following the resolution of a ‘cost protocol’ court case in January, distributions were recommenced on 5 January 2023. Since then, RSM said it has processed distributions totalling £16,325,303.
Lendy was a peer-to-peer property lending platform that fell into administration in 2019 with more than £160m outstanding in its development finance and bridging loan book. At least £90m of those funds were in default at the time of its collapse.
The administration process has been lengthy due to the complex nature of the Lendy business model, as well as a number of court cases regarding the way in which money should be distributed.
Earlier this week, it emerged that RSM had successfully applied to extend the administration process until 23 May 2025.
In January, RSM revealed that the administration process has incurred £5.2m of costs so far.