Prosper Capital LLP in liquidation: how Crowd2Let investors claim FSCS compensation
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Prosper Capital LLP, the FCA-authorised firm behind appointed representative Crowd2Let Capital Limited, went into creditors' voluntary liquidation on 1 June 2026. FSCS opened its claim service for Prosper Capital investors on 16 July 2026 - here's what happened, who's likely covered, and how to claim without paying anyone a fee.
Key takeaways
- Prosper Capital LLP (FRN 453007) entered creditors' voluntary liquidation on 1 June 2026, after the Financial Ombudsman Service upheld complaints about property investments made through its appointed representative, Crowd2Let Capital Limited (FRN 743371).
- FSCS is now accepting claims against Prosper Capital relating to Crowd2Let's activities, but is still investigating whether claims qualify for compensation - that assessment may take time.
- If your claim qualifies, compensation for investments is up to £85,000 per eligible person, per firm (the limit for firms that failed after 1 April 2019).
- It's free to claim with FSCS, and you keep 100% of any compensation if you claim directly rather than through a claims management company.
- If you already have an open complaint with the Financial Ombudsman Service, you don't need to do anything yet - FOS may contact you about transferring your file.
- Watch for scams: fraudsters target customers of firms that are in the news, so verify any unexpected contact before acting on it.
What happened to Prosper Capital and Crowd2Let?
Prosper Capital was an FCA-authorised alternative investment fund manager, regulated since 2006, that arranged deals in property investments, Enterprise Investment Schemes and other alternative investment funds. It acted as principal to an appointed representative, Crowd2Let Capital Limited, which carried out property investment activity under Prosper's regulatory umbrella.
The Financial Ombudsman Service upheld complaints about property investments made through Crowd2Let. After taking professional insolvency advice and reviewing its financial position, Prosper stopped trading, and its designated members placed the firm into creditors' voluntary liquidation on 1 June 2026. Jeremy Karr and Simon Killick of BTG Begbies Traynor (Central) LLP were appointed joint liquidators. Prosper has applied to cancel its FCA authorisation, and that application is subject to FCA review - the firm remains authorised and subject to FCA oversight in the meantime, though the FCA does not regulate the liquidation process itself.
Am I covered, and how much could I get back?
FSCS protects customers when an FCA-authorised firm fails and can't meet valid claims. It opened its claim service specifically for Prosper Capital claims relating to Crowd2Let's activities on 16 July 2026. That's a narrower scope than "anything to do with Prosper" - if your investment or complaint runs through Crowd2Let, this is the route that applies to you.
Two things worth understanding before you claim:
- FSCS is still investigating. Submitting a claim now doesn't mean it's immediately assessed - FSCS says it's determining whether claims against Prosper/Crowd2Let meet the qualifying conditions for compensation, and that this may take some time.
- The compensation limit is £85,000 per eligible person, per firm, which applies to investment firms that failed on or after 1 April 2019. Whether your specific loss is covered depends on the type of investment and FSCS's eligibility criteria - not every investment product is protected.
What should I do right now?
| Your situation | What to do |
|---|---|
| You invested through Crowd2Let and haven't complained anywhere yet | Submit a claim directly to FSCS using its online claim service - it's free. |
| You already have an open complaint with the Financial Ombudsman Service | Don't take action yet - FOS may contact you to ask permission to transfer your file to FSCS. You'll still need to submit an FSCS claim, but won't need to resupply evidence already in your FOS file. |
| You have an existing, unresolved complaint directly against Prosper | Put the details in writing to the joint liquidators (contact details below) rather than the firm itself. |
| You get an unexpected call, email or text about your investment | Treat it with caution, even if the caller knows details about you - end the contact and reach out to the liquidators or FSCS through official channels instead. |
| Someone offers to "help" you claim for a fee | You don't need them. FSCS and the Financial Ombudsman Service are both free to use, and claiming direct means you keep 100% of any compensation. |
How do I contact the joint liquidators?
For questions about how the liquidation affects you specifically, or to register an existing complaint against Prosper, contact BTG Begbies Traynor (Central) LLP:
- Phone: 020 7516 1500
- Post: BTG Begbies Traynor, Level 33, One Canada Square, London E14 5AB
The liquidators are regulated by the Institute of Chartered Accountants in England & Wales and answer to the courts on the conduct of the liquidation - separate from FSCS's job of assessing compensation claims.
What evidence helps
- Any paperwork confirming your investment through Crowd2Let or Prosper: application forms, contract notes, statements
- Records of payments you made: bank statements, transfer confirmations, receipts
- Any correspondence with Crowd2Let or Prosper about the investment, including promotional material you were shown
- If you already complained to the Financial Ombudsman Service: your case reference and any decision or update you received
- A simple timeline of when you invested, what you were told, and when things started going wrong
How to structure a claim
Whether you're claiming with FSCS or writing to the liquidators, keep it factual: what you invested in, how much, when, what you were told at the time, and what has happened since. Attach your evidence rather than describing it. If you're submitting an FSCS claim, follow their online process directly - it's built to walk you through what's needed rather than requiring a free-form letter.
When and how to escalate
If you already have a complaint open with the Financial Ombudsman Service, which is free, let that process continue - FOS may transfer your file to FSCS with your permission rather than you starting again. If you haven't complained anywhere yet and your investment falls under Crowd2Let's activities, going directly to FSCS is the right first step, since Prosper itself is no longer trading and dealing with liquidators is a different process from an ordinary complaint.
Sources: FCA, Prosper Capital LLP enters creditors' voluntary liquidation (Last checked: 22.07.2026); FSCS, Prosper Capital LLP - failed firms (Last checked: 22.07.2026); FSCS, What we cover - investments (Last checked: 22.07.2026); Financial Ombudsman Service, Investment complaints (Last checked: 22.07.2026).
Not the first firm this has happened to
Firms exiting the market while owing customers money isn't rare - HeyRefund has covered similar situations recently, including Logbook Lending Limited entering administration and Anthony Jones (UK) Limited stopping regulated activity. If your money is tied up with an investment firm generally, our guide to pension and investment transfer delays covers a related set of escalation routes.
How HeyRefund can help
Claims like this come down to a clear paper trail: what you invested, what you were told, and what FSCS or the liquidators need to see to process your claim. HeyRefund helps you pull that evidence together and structure it clearly.
Everything above you can do yourself for free, direct with FSCS or the Financial Ombudsman Service. HeyRefund just makes the file easier to build and harder to get stuck on.
Frequently asked questions
What happened to Prosper Capital LLP?
Prosper Capital LLP, an FCA-authorised alternative investment fund manager, went into creditors' voluntary liquidation on 1 June 2026 after the Financial Ombudsman Service upheld complaints about property investments made through its appointed representative, Crowd2Let Capital Limited. Joint liquidators from BTG Begbies Traynor were appointed to wind down the firm.
Can I claim compensation if I invested through Crowd2Let?
FSCS opened its claim service for Prosper Capital, in relation to Crowd2Let's activities, on 16 July 2026. You can submit a claim now, but FSCS is still investigating whether claims meet the qualifying conditions, which may take some time. Eligible claims are covered up to £85,000 per person, per firm.
Do I need to use a claims management company?
No. FSCS claims are free to make yourself, and you keep 100% of any compensation if you claim directly. A claims management company will typically charge a fee to do the same thing, which reduces what you actually receive.
I've already complained to the Financial Ombudsman Service - do I need to do anything?
Not immediately. If you already have a case open with the Financial Ombudsman Service, it may contact you to ask permission to transfer your file to FSCS. You will still need to submit a claim to FSCS, but you won't need to re-supply evidence already in your FOS file once it is transferred.
This guide is general information, not legal or financial advice, and does not guarantee any outcome. Rules and time limits change. Complaining to a financial firm and escalating to the Financial Ombudsman Service is free, and you keep any compensation. HeyRefund is not a law firm and does not provide legal advice or claims-management services; it offers document-preparation tools based on real complaints data and Financial Ombudsman decision patterns. For advice on your circumstances, consider a free service such as Citizens Advice.