MoneyThing - FAQ's
Directors have appointed Tom Straw and Milan Vuceljic of Moorfields Advisory Ltd as Joint Administrators of MoneyThing Capital Limited and MoneyThing Security Trustee Limited effective today, 21st December 2020.
An Administration is a UK insolvency procedure designed to protect a company whilst the Administrators try to rescue it through a sale and if that is not possible, by realising the assets of the Company for the benefit of the creditors.
Only Licensed Insolvency Practitioners can be appointed as Administrators to manage the Company’s affairs during an Administration.
What happens now that the Joint Administrators have been appointed?
The Joint Administrators together with the Directors of MoneyThing, who have agreed to provide whatever assistance is required on an ongoing basis and assist in a smooth transition, plan to continue the orderly wind down of the loan portfolio and returning monies to lenders. The plan has been designed to minimise the impact on the business creditors and other stakeholders, including lenders and borrowers.
How long is the Administration likely to last?
An Administration will continue until the platform loans have been resolved. An Administration lasts for up to 12 months; however, it can be extended if required by the Joint Administrators.
I have a claim against the company. How do I submit my claim?
The Administrators will write to all known creditors of the company and invite them to provide details of what they are owed. Routinely claims will not be acknowledged at this stage in the proceedings, but further information will be provided in due course as to the prospects of receiving any payment in respect of such claims.
Are the FCA aware of that Administrators have been appointed?
Yes, the FCA are aware and have provided their consent. As a regulated firm MoneyThing are required to keep the FCA informed of all material factors that affect it’s business, which will continue with the Companies in Administration.
I have invested in an Innovative Finance ISA (IFISA) on MoneyThing’s platform – will the administration impact on the tax-free status?
If customers have questions regarding tax on their investments, they may wish to contact HMRC or seek independent financial advice. It is important to remember that IFISAs do not have Financial Services Compensation Scheme (FSCS) protection.
The Joint Administrators will be providing an update to IFISA customers through the MoneyThing website/ portal in the new year. The Joint Administrators will be contacting HMRC to request guidance on how IFISA’s will be affected by their appointment.
Will investors be able to get compensation from the FSCS?
The activities of P2P firms are not covered by the FSCS.
Do I need to use a third party to get my money back?
Companies may approach customers of MoneyThing, offering to help them bring claims against the Companies. Please note for the majority of MoneyThing’s clients, there is no benefit in involving a third party in making a claim. Any customer who believes they have a complaint or a claim against the firm should contact the Joint Administrator’s in the first instance.
Will I still be able to access the MoneyThing Portal?
The Joint Administrators will continue to operate the MoneyThing Portal so you will still receive updates on your investments and apply to withdraw any funds that become available in the normal way. An update has been provided to lenders on the MoneyThing Portal, if you access your account in the normal way this will be available.
I want to withdraw my uninvested funds, how long will this take?
The Joint Administrators have completed their reconciliation of the lender client account and confirm that they are satisfied that there are no irregularities with the account. In addition, the Joint Administrators no have the ability to process payments.
It is the Joint Administrators’ intention to process lender payments at least once a week, the cut off for payments will be 5pm on a Wednesday to ensure that a withdrawal request made via the MoneyThing Portal is made the next week. Payments may be made more frequently, particularly when the Joint Administrators have received a capital repayment from a borrower.
Should your withdrawal request for uninvested funds be in respect of funds that you require urgently, please email firstname.lastname@example.org and email@example.com to advise of your situation so that a urgent payment can be considered.
When can I expect an update on the loans I have invested in?
The Joint Administrators have been establishing the current positions with each of the loans and expect an update will be provided on all loans by 31 January. Where there is a material development prior to 31 January on a particular loan, an earlier update may be provided.
Going forward loans which are not subject to recovery proceedings will be updated monthly, or more frequently where there is a significant development on a particular. Loans subject to recovery proceedings these will be updated no less than quarterly or more frequently where there is a significant development with a particular loan.
Lenders will continue to be advised of borrower repayments and the MoneyThing platform updated in the usual manner.
Any other customer enquiries should be directed to firstname.lastname@example.org.
As a borrower, do I have to continue to repay my loan(s)?
Borrowers continue to be bound by the terms of the loan agreement facilitated by MoneyThing. If you have any questions, please direct them to the Joint Administrators.