After having recently swollen its ranks through the addition of Lending Works, the P2PFA has now lost a member.
Wellesley & Co. has become suddenly and conspicuously absent from the P2PFA’s “Members” page. AltFi has learnt that the rapidly growing, asset-backed lending platform has elected to resign from the organization. We’re led to understand that that the resignation stems from a dispute caused by a number of misalignments between Wellesley’s conduct and the rules of the P2PFA.
The rift appears to have been formed around a couple of the platform’s marketing actions, with Wellesley’s “Savings Bond” residing at the heart of the issue. The P2PFA’s “Rules Governing the Use of Platforms” include the following stipulation:
“Members may lend their own money on their platform, provided that each Member which does lend its own money on its own platform clearly discloses that fact to its customers. Members should not borrow or raise funds through their own platform.”
The Wellesley Savings Bond was launched in late July. The capital raised by the bond was to be used to “expand the business” – with the goal of markedly increasing the Wellesley platform’s lending capacity – as well as to invest in property and other secured opportunities.
Neither side appeared willing to budge over the Savings Bond, and this ultimately was the key factor in Wellesley’s decision to withdraw its membership by way of resignation.