As part of the process that the FCA is going through in the authorisation and regulation of the P2P sector they have asked the industry to make a number of changes to their terms and conditions. The industry is evolving fast, and Lendy will be implementing these changes over coming weeks, in order that it continues to remain at the forefront of developments.
The changes we are implementing include the way interest is paid during our post-loan term Tolerance Period, a new bonus accrual scheme to compliment the new cash back offer, which we are introducing on certain individual development tranches, disabling trading on non-performing/suspended loans, interest policy on loan parts put up for sale, and a new soon-to-be-released variable pre-funding model.
These changes are to ultimately improve consumer protection in the long term and, whilst requiring a change to some of our policies and platform in the short term, should create benefits for customers in terms of platform transparency, and improving the liquidity of the available loans.
We are moving towards the implementation of Cash Preferencing pre-funding on the platform. This will give priority for investors who have pledged and transferred funds, ahead of those investors who have pledged, but have yet to make a physical funds transfer to the platform. This is to enable those investors who have selected their investments, and have transferred funds quicker access to their chosen loans. This is also a fairer and more transparent method of arbitrating on popular loans or loan parts.