ThinCats places P2P loans business into run-off

The lender has moved instead to an institution-only funding model.

The shift has come after the Financial Conduct Authority (FCA) introduced new rules to protect P2P investors. 

Landbay last week joined the lenders exiting the P2P market and has since returned money to investors.

ThinCats has put its P2P operation into run-off and closed it to new investors. Existing investors will continue receiving interest and capital repayments as usual on the loans they hold.

ThinCat’s P2P systems, controls and staff will stay on ensuring investors’ interest and capital is collected when due or otherwise actively recovered.

The lender will continue providing loans to UK small and medium-sized businesses with institution-backed products.

The new FCA rules limited the maximum deposit of ordinary investors in peer-to-peer loans to ten per cent of his or her assets, unless the investor has taken regulated advice. They provided for investors knowing they are not covered by the Financial Services Compensation Scheme (FSCS) and they introduced stricter advertising rules.