(Yicai Global) Dec. 14 -- Users of Renrendai recently complained about difficulties in reclaiming their investments from the Chinese peer-to-peer lending pioneer.

Users can apply to get back just 65 percent of the principal via the platform’s emergency transfer channel with no interest, China Fund Daily reported yesterday, citing a lender who said it was difficult to get a withdrawal application approved.

But Renrendai’s customer service department said the Beijing-based platform has no funding problems and the emergency channel was a convenient way for users to cash out quickly.

When an investor’s money matured, it was previously added to their balance. If redeemed in advance, the lender was charged 2 percent to 3 percent of the principal. But to comply with national regulations, the platform has removed the advance withdrawal option on fixed-term services issued or renewed since Sept. 27, 2018.

Chinese regulators began a crackdown on P2P lenders in 2018 due to illegal fund-raising and frequent closures. Their ranks have dropped from a peak of more than 5,000 to just three last month.

Founder Yang Yifu said last month that he hoped lenders would trust the firm and the emergency channel is the best solution for now, though Renrendai does not expect lenders to use the channel but to wait for another three years for the firm to work out a solution to allow them to get back 100 percent of their principal.

Renrendai had a loan balance of about CNY25.1 billion (USD3.8 billion) and 188,065 investors as of Sept. 30, according to its own statistics. Of that, CNY63.2 million (USD9.7 million) was overdue, accounting for 0.22 percent of the total.

Formed in 2010, Renrendai was one of China’s first intermediary online lending platforms. It secured USD130 million in A-round financing in 2014, with USD65 million from Shanghai Trust Bridge Partners Management and the rest from other backers.

Editor: Peter Thomas