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Post by xjlc on May 6, 2020 14:23:58 GMT
Hi guys
I've been lurking and reading everything on here lately, thank you for all the insightful information. I'm a 5 figure lender sat in the withdrawal queue right now.
Something I can't seem to find a clear, detailed answer online about is:
What exactly are the borrowers responsibilities if RS folds? Thus far I understand another company is likely to take over the loans. At that point, if borrowers don't pay back what we've loaned - will they have CCJs, enforced payback through bailiffs etc against them? Even if the loans are unsecured? Or can they duck out at that point and it'll be the moral few who continue to repay?
I'm trying to understand the process and steps should that happen, and I hope some of your guys' knowledge and experience will help shed light on it, just for my curiosity if anything.
Thanks
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Post by Ace on May 6, 2020 14:42:53 GMT
The borrowers legal obligations to pay won't change. How hard they would be chased is unknown. My guess is that defaulted loans would be sold off to collection agencies, but RS has been doing that anyway.
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chris1200
Member of DD Central
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Likes: 508
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Post by chris1200 on May 6, 2020 14:58:18 GMT
Hi guys I've been lurking and reading everything on here lately, thank you for all the insightful information. I'm a 5 figure lender sat in the withdrawal queue right now. Something I can't seem to find a clear, detailed answer online about is: What exactly are the borrowers responsibilities if RS folds? Thus far I understand another company is likely to take over the loans. At that point, if borrowers don't pay back what we've loaned - will they have CCJs, enforced payback through bailiffs etc against them? Even if the loans are unsecured? Or can they duck out at that point and it'll be the moral few who continue to repay? I'm trying to understand the process and steps should that happen, and I hope some of your guys' knowledge and experience will help shed light on it, just for my curiosity if anything. Thanks You might want to have a read of this. All platforms have to have such a plan these days and it should be accessible on their website. www.ratesetter.com/globalassets/fca/12-2019-wind-down-plans.pdf
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Post by xjlc on May 6, 2020 15:10:55 GMT
The borrowers legal obligations to pay won't change. How hard they would be chased is unknown. My guess is that defaulted loans would be sold off to collection agencies, but RS has been doing that anyway. Gotcha'. That's the part I've been unsure of. Collection agencies would then go the standard route, right? Not repaying would heavily impact their credit score? Possibly lead to CCJs etc? So there would be good incentive to repay?
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Post by xjlc on May 6, 2020 15:12:25 GMT
Hi guys I've been lurking and reading everything on here lately, thank you for all the insightful information. I'm a 5 figure lender sat in the withdrawal queue right now. Something I can't seem to find a clear, detailed answer online about is: What exactly are the borrowers responsibilities if RS folds? Thus far I understand another company is likely to take over the loans. At that point, if borrowers don't pay back what we've loaned - will they have CCJs, enforced payback through bailiffs etc against them? Even if the loans are unsecured? Or can they duck out at that point and it'll be the moral few who continue to repay? I'm trying to understand the process and steps should that happen, and I hope some of your guys' knowledge and experience will help shed light on it, just for my curiosity if anything. Thanks You might want to have a read of this. All platforms have to have such a plan these days and it should be accessible on their website. www.ratesetter.com/globalassets/fca/12-2019-wind-down-plans.pdfThanks for the link. I have had a read of that before, I'm still unsure of to what extent that'll really be enforced, or what the genuine situation may look like VS what an ideal world would be. I wasn't around for the Lendy collapse and hoped someone may have been who can share the finer details.
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chris1200
Member of DD Central
Posts: 827
Likes: 508
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Post by chris1200 on May 6, 2020 15:17:30 GMT
Thanks for the link. I have had a read of that before, I'm still unsure of to what extent that'll really be enforced, or what the genuine situation may look like VS what an ideal world would be. I wasn't around for the Lendy collapse and hoped someone may have been who can share the finer details. It's not really possible to say that because x happened with Lendy or y happened with Collateral, z will happen with RateSetter ( if things were to go wrong). Generally, as Ace says, it definitely isn't the case that borrowers get out of any obligations. But how this is managed depends on the situation. It could be an orderly wind-down of sorts, or it could be a more messy administration. In all cases, though, there should be someone enforcing against the loans in some shape or form.
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Post by xjlc on May 6, 2020 15:23:29 GMT
Thanks Chris. That makes sense. I'll tone down the nosiness and see how it unfolds!
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chris1200
Member of DD Central
Posts: 827
Likes: 508
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Post by chris1200 on May 6, 2020 15:39:05 GMT
Thanks Chris. That makes sense. I'll tone down the nosiness and see how it unfolds! No need to tone down anything! Just a lot that we can't know for sure. None of us imagined what has happened in the Collateral debacle...!!
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