registerme
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Post by registerme on Aug 4, 2015 16:57:01 GMT
"We’re making some small changes to our investor T&Cs this week, mainly to clarify how the marketplace works and to comply with regulation. Please see below for details:
Investor terms & conditions
* Changes to clauses 1.10 to 1.14 to clarify that money must be paid in from, and withdrawn to, a bank account in the name of the Funding Circle account holder.
* A change to clause 5.1 to clarify that we can make changes to loan conditions in respect of future loans, as long as we notify investors of such changes and they do not adversely affect investors.
* Changes to clauses 10 and 12 to clarify that any debt collection activity is carried out by Funding Circle Limited.
* Amendments to clauses 13.2(a) and (e) to make clear that we can, in the interests of all investors, terminate membership of Funding Circle if our marketplace is not being used for the purposes for which it is intended.
*Some small changes to clause 25 (clauses 25.3 and 25.4) to clarify how we hold client money and how statements are provided.
If you have any questions about these updates please get in touch and we’ll be more than happy to help.
Enjoy lending,
The Funding Circle team"
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blender
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Post by blender on Aug 4, 2015 17:03:10 GMT
There are some fine judgements required in 5.1 and 13.2. I wonder who gets to make those judgements?
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Post by GSV3MIaC on Aug 4, 2015 19:41:28 GMT
13.2 could be a bit iffy since i don't think I've ever seen a black-and-white statement about what it IS intended for?!
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blender
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Post by blender on Aug 4, 2015 21:25:11 GMT
13.2 could be a bit iffy since i don't think I've ever seen a black-and-white statement about what it IS intended for?! Very - they will only need to start defining what it is intended for when they wish to remove someone who is using it in a way they do not like. Aggressive flipping? People deemed to be lending in a racist manner by excluding loans in W*l*s? Certain bots?
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sl75
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Post by sl75 on Aug 4, 2015 21:51:12 GMT
13.2 could be a bit iffy since i don't think I've ever seen a black-and-white statement about what it IS intended for?! One assumes that the amended version of 13.2 will contain that definition...
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registerme
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Post by registerme on Aug 4, 2015 22:15:22 GMT
It was 13.2 that caught my eye and caused me to post. I don't necessarily have a problem with FC protecting the integrity of the market, but, as blender and GSV have mentioned, I really have no idea what is meant by "if our marketplace is not being used for the purposes for which it is intended" actually means.
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fasty
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Post by fasty on Aug 4, 2015 22:17:57 GMT
blatant scrappyphobia?
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registerme
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Post by registerme on Aug 5, 2015 0:16:50 GMT
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blender
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Post by blender on Aug 5, 2015 8:57:57 GMT
On reflection, I think they may well be wishing to act against bots hoovering up the E loans. There is grumpiness in another place. But I think they will leave themselves maximum flexibility in the new T&Cs to decide on a case by case basis what the platform is not intended for - whilst trying to avoid defining what it is for. We shall see.
Scrappyphobia in FC - fear of those who lend or trade aggressively (including confrontational questioning of the borrower)?
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blender
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Post by blender on Aug 5, 2015 12:08:54 GMT
I have always thought that an unfair contract term, especially when the cash is held in loans and cannot be just withdrawn. Also the fact that they can change the terms unilaterally and you have no choice but to accept them, applying to your existing portfolio, or else not use the platform. Maybe with FCA regulation Favourable Conditions have to worry a bit more about their ability to assume and use arbitrary powers. I do hope so.
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blender
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Post by blender on Aug 6, 2015 8:21:42 GMT
v) for a purpose for which the platform is not intended or other than as a marketplace for lending to SMEs; ...
as expected the intended or not intended is not defined, other than as a marketplace for lending to businesses - which perhaps puts its use by a business of primarily trading in loan parts outside of the intended purpose.
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Post by GSV3MIaC on Aug 6, 2015 11:10:56 GMT
v) for a purpose for which the platform is not intended or other than as a marketplace for lending to SMEs; ... as expected the intended or not intended is not defined, other than as a marketplace for lending to businesses - which perhaps puts its use by a business of primarily trading in loan parts outside of the intended purpose. So we really shouldn't be lending money against large building projects then? Obviously not SMEs, since the government won't put the 10% SME contribution in. 8>.
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