Peer-to-peer Lender FundingSecure Enters Administration

FundingSecure, which offered loans against classic cars and Picasso paintings, has become the second British peer-to-peer lender to collapse in six months, the Financial Times reported. The decision to call in administrators at CG Recovery on Wednesday following rising defaults and legal issues leaves about 3,500 investors exposed to potential losses if the debts cannot be recovered. CG said FundingSecure’s outstanding loan book was worth about £80m and that it was too early to predict how much money they would be able to return to creditors and investors. The Financial Conduct Authority said all affected investors would be contacted by the administrators in due course, but any losses would not be covered by the Financial Services Compensation Scheme. Read more