keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Post by keitha on Nov 5, 2019 8:57:14 GMT
comment on one of my loans
We have been informed that the business has entered a form of insolvency. We are trying to contact the borrower to determine how their payments will be made. We will inform investors of any further developments and thank them for their patience.
Nothing on companies house, why can't hey say CVA , liquidation etc etc
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Nov 23, 2019 13:13:37 GMT
Can anyone beat this one? (been sitting on it for a few weeks, so gobsmacked I forgot to post)
"From receipt of the Trustees most recent report a sale of the former matrimonial home has been agreed and is progressing. However, due to claims from the guarantor's wife and the level of costs and other liabilities it appears unlikely that there will be any return to unsecured creditors. We envisage to be able to make a further update in September 2020 when the next report will be due; unless there is a material change before this time."
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upperdeane
Member of DD Central
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Post by upperdeane on Nov 23, 2019 20:26:25 GMT
Can anyone beat this one? (been sitting on it for a few weeks, so gobsmacked I forgot to post)
"From receipt of the Trustees most recent report a sale of the former matrimonial home has been agreed and is progressing. However, due to claims from the guarantor's wife and the level of costs and other liabilities it appears unlikely that there will be any return to unsecured creditors. We envisage to be able to make a further update in September 2020 when the next report will be due; unless there is a material change before this time."
Fantastitic. LOL.
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Post by shanghaiscouse on Nov 25, 2019 11:53:49 GMT
Can anyone beat this one? (been sitting on it for a few weeks, so gobsmacked I forgot to post)
"From receipt of the Trustees most recent report a sale of the former matrimonial home has been agreed and is progressing. However, due to claims from the guarantor's wife and the level of costs and other liabilities it appears unlikely that there will be any return to unsecured creditors. We envisage to be able to make a further update in September 2020 when the next report will be due; unless there is a material change before this time."
in other words, they never considered if the guarantor had the financial capacity to fulfil the guarantee he was signing. i.e. they lent based on a worthless piece of paper. no surprise.
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blender
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Post by blender on Nov 25, 2019 13:02:02 GMT
FC does not take a charge on the guarantor's assets, and so is last in the queue. Long ago they had asset purchase loans, where they would take ownership of company assets bought with the loan. No longer. FC use the lack of security required as a selling point for the loans. Fill out a form, computer says yes and quotes the rate. Here's your (our) cash.
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sl75
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Post by sl75 on Nov 25, 2019 18:06:08 GMT
in other words, they never considered if the guarantor had the financial capacity to fulfil the guarantee he was signing. i.e. they lent based on a worthless piece of paper. no surprise. To my mind, the main points of a "director's guarantee" are: - to provide a form of protection against a slightly dodgy director extracting money from the business, and then later relying on the "limited liability" to be able to keep their profit whilst the lenders are left with practically nothing. - to ensure that at any time the lenders lose money, the director has also either lost money or had nothing to lose in the first place.
If directors had the financial capacity to fulfil the guarantee using relatively liquid assets, why wouldn't they the money to the business themselves, and not involve a third-party lender?
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blender
Member of DD Central
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Post by blender on Nov 25, 2019 19:20:04 GMT
in other words, they never considered if the guarantor had the financial capacity to fulfil the guarantee he was signing. i.e. they lent based on a worthless piece of paper. no surprise. To my mind, the main points of a "director's guarantee" are: - to provide a form of protection against a slightly dodgy director extracting money from the business, and then later relying on the "limited liability" to be able to keep their profit whilst the lenders are left with practically nothing. - to ensure that at any time the lenders lose money, the director has also either lost money or had nothing to lose in the first place.
If directors had the financial capacity to fulfil the guarantee using relatively liquid assets, why wouldn't they the money to the business themselves, and not involve a third-party lender?
Yes, to take your second point. A business owner would rather put his/her cash into a failing business, say to pay trade creditors and turn it around, rather than keep it to pay to lender creditors after it has failed. The guarantee may mean that the available cash is used up before the business fails. The guarantee is also a protection against the pre-pack insolvency.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Dec 11, 2019 18:05:50 GMT
Anyone else got this one (Commercial Mortgage loan)?
05 Nov 2019
We are expecting the loan to be repaid in full via a refinance within the next 4 weeks.
(I make that five weeks yesterday)
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Post by Badly Drawn Stickman on Dec 11, 2019 18:17:33 GMT
Anyone else got this one (Commercial Mortgage loan)?
05 Nov 2019
We are expecting the loan to be repaid in full via a refinance within the next 4 weeks.
(I make that five weeks yesterday)
Yes, nasty loan Never missed a payment and asset backed. Arguably the best loan on FC. Edit From memory defaulted on a technicality so not tradeable for the last few years despite always being up to date
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Dec 17, 2019 13:04:05 GMT
Anyone else got this one (Commercial Mortgage loan)?
05 Nov 2019
We are expecting the loan to be repaid in full via a refinance within the next 4 weeks.
(I make that five weeks yesterday)
Yes, nasty loan Never missed a payment and asset backed. Arguably the best loan on FC. Edit From memory defaulted on a technicality so not tradeable for the last few years despite always being up to date Another week has passed and still no sign of that refinance.
From memory the loan has not met repayments on time for quite a while and the repayment of capital was due back in May.
If that makes it the best loan on FC it says alot for the rest. (and weren't all the nasty property loans that have gone bad 'asset backed'?)
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Post by Badly Drawn Stickman on Dec 17, 2019 13:37:36 GMT
Yes, nasty loan Never missed a payment and asset backed. Arguably the best loan on FC. Edit From memory defaulted on a technicality so not tradeable for the last few years despite always being up to date Another week has passed and still no sign of that refinance.
From memory the loan has not met repayments on time for quite a while and the repayment of capital was due back in May.
If that makes it the best loan on FC it says alot for the rest. (and weren't all the nasty property loans that have gone bad 'asset backed'?)
Funding Circle has a very impressive list of ill conceived badly managed loans, if we are talking about 6036 it has no place on that list. It will probably not get the capital fully repaid until next year (arguably penalty interest is being applied), but the scheduled payments were all made on time, hardly the usual measure of a bad loan. Show me a currently live loan on FC more likely to give a positive return and I will happily categorise it accordingly.
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p2pstephan
Member of DD Central
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Post by p2pstephan on Dec 17, 2019 14:18:42 GMT
Once in bad debt I do not think it can come out. It changes legal status and is owned by the recovery team. No idea what actually goes on in FC recoveries, but as far as I can see, for most loans, once it’s in "Bad debt" that's it ,write it off and move on. I looked at my account, 53 loans in bad debt (75 loan parts) and of my bad debts they have only managed to recover 3.5%. The account has been running for a year and a half. ANNUALISED RETURN = 3.1%. I have taken all my money out now and left the profit in. Now taking out the profit (About 2.5K) so cannot complain but it’s too much risk for 3%. If by magic all my bad debts came in then that’s another 5K profit and that would make the returns very nice indeed, but as I say, for me "Bad Debt"="money gone". The likely hood of recovery is low and the cost of recovery is high which mean we will not see much return on our bad debts.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Dec 21, 2019 16:17:43 GMT
Another week has passed and still no sign of that refinance.
From memory the loan has not met repayments on time for quite a while and the repayment of capital was due back in May.
If that makes it the best loan on FC it says alot for the rest. (and weren't all the nasty property loans that have gone bad 'asset backed'?)
Funding Circle has a very impressive list of ill conceived badly managed loans, if we are talking about 6036 it has no place on that list. It will probably not get the capital fully repaid until next year (arguably penalty interest is being applied), but the scheduled payments were all made on time, hardly the usual measure of a bad loan. Show me a currently live loan on FC more likely to give a positive return and I will happily categorise it accordingly. Yes, that's the one.
There's been another update:
20 Dec 2019
"We remain in correspondence with the Borrower's solicitors with regards to the settlement of the outstanding loan balance. The Borrower is in the process of refinancing externally in order to repay the outstanding Funding Circle loan and, whilst the lending application has been approved and is progressing, there are some residual matters outstanding with the prospective new lender's solicitors to finalise the lending process. We have been advised that the lending process is now likely to complete in January and have confirmed that we will be progressing to enforcement of our security to protect the interests of our loan investors if settlement is not effected within the next 4 weeks. We are hopeful that this matter will be outside of any legal process within this timeframe but will update investors in the new year. We thank investors for their patience."
Pathetic really. Best loan on FC? I don't think so!
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coogaruk
Hello everyone! Anyone remember me?
Posts: 703
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Post by coogaruk on Jan 3, 2020 11:56:51 GMT
Funding Circle has a very impressive list of ill conceived badly managed loans, if we are talking about 6036 it has no place on that list. It will probably not get the capital fully repaid until next year (arguably penalty interest is being applied), but the scheduled payments were all made on time, hardly the usual measure of a bad loan. Show me a currently live loan on FC more likely to give a positive return and I will happily categorise it accordingly. Yes, that's the one.
There's been another update:
20 Dec 2019
"We remain in correspondence with the Borrower's solicitors with regards to the settlement of the outstanding loan balance. The Borrower is in the process of refinancing externally in order to repay the outstanding Funding Circle loan and, whilst the lending application has been approved and is progressing, there are some residual matters outstanding with the prospective new lender's solicitors to finalise the lending process. We have been advised that the lending process is now likely to complete in January and have confirmed that we will be progressing to enforcement of our security to protect the interests of our loan investors if settlement is not effected within the next 4 weeks. We are hopeful that this matter will be outside of any legal process within this timeframe but will update investors in the new year. We thank investors for their patience."
Pathetic really. Best loan on FC? I don't think so!
And yet another two weeks have passed so far.
Why do FC persist in playing these seemingly never-ending games?
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coogaruk
Hello everyone! Anyone remember me?
Posts: 703
Likes: 463
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Post by coogaruk on Jan 15, 2020 14:28:16 GMT
Yes, that's the one.
There's been another update:
20 Dec 2019
"We remain in correspondence with the Borrower's solicitors with regards to the settlement of the outstanding loan balance. The Borrower is in the process of refinancing externally in order to repay the outstanding Funding Circle loan and, whilst the lending application has been approved and is progressing, there are some residual matters outstanding with the prospective new lender's solicitors to finalise the lending process. We have been advised that the lending process is now likely to complete in January and have confirmed that we will be progressing to enforcement of our security to protect the interests of our loan investors if settlement is not effected within the next 4 weeks. We are hopeful that this matter will be outside of any legal process within this timeframe but will update investors in the new year. We thank investors for their patience."
Pathetic really. Best loan on FC? I don't think so!
And yet another two weeks have passed so far.
Why do FC persist in playing these seemingly never-ending games?
This is getting ridiculous now:
14 Jan 2020 "We have sent a chase up email to the solicitors, to get an update on the refinance."
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