Prosper Capital LLP enters creditors’ voluntary liquidation

The Financial Ombudsman Service (FOS) upheld complaints about property investments made through Crowd2Let, which was an appointed representative of Prosper.  

Having considered the financial position and received professional insolvency advice, Prosper stopped trading. Its designated members took steps to place Prosper into creditors’ voluntary liquidation. 

The Financial Services Compensation Scheme (FSCS) protects consumers when financial services firms fail. It is the compensation scheme for customers of UK authorised financial services firms. It has eligibility criteria for both the people and businesses who are covered.

If a claim is covered by the FSCS, eligible customers may receive up to £85,000.

Find out more about what the FSCS covers and compensation limits[1].

The FSCS is now open to claims for Prosper about the activities of its appointed representative, Crowd2Let.  

The FSCS is currently investigating Prosper to decide whether claims qualify for compensation.  

Find more information on the FSCS’s dedicated Prosper page[2].

If you want to make a complaint, contact the joint liquidators using the contact details above. 

If you have an existing complaint against Prosper, please provide details of your complaint in writing to the joint liquidators using the contact details above.  

If you have already referred a complaint to the Financial Ombudsman Service[3] (FOS), you don’t need to take any action at the moment. As Prosper is in liquidation, the FOS will contact you in due course about next steps.

You should proceed with caution if you are approached by a claims management company (CMC)[4].  

For most clients, there is no benefit in involving a third party in making your claim.  

If you use a CMC to help with your claim, the CMC is likely to seek a fee which may reduce how much money you get back.  

If you are considering using a CMC to help with your claim, we suggest you first discuss this with the joint liquidators using the contact details above.

Prosper is still authorised by the FCA and remains subject to supervisory oversight and our rules. The firm has submitted an application to cancel its authorisation, which is subject to review by the FCA.

The FCA does not regulate insolvency processes or the joint liquidators. The individuals appointed as joint liquidators are regulated by the Institute of Chartered Accountants in England & Wales (ICAEW). They must follow insolvency law and are answerable to the courts.

We are liaising as appropriate with the joint liquidators.