ptr120
Member of DD Central
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Post by ptr120 on Jun 6, 2016 17:43:28 GMT
I've just placed a bid on a new FC loan part and was asked to accept terms and conditions. I know that I've not placed a bid on an SME loan for a while, so I might have missed this, but there were a few things in the terms and conditions that caught my eye:
1) The borrower has to pay interest from loan close - has pre-acceptance now been implemented?
2) Repay early, but less then 8 days before the next installment is due? You owe another month
3) Once a sum has been outstanding for 7 days or more, Funding Circle will charge an administration fee of up to 15% of the overdue amount (where borrowers are 4 or pore payments late)
Has anyone else who is a bit more clued up of FC terms and conditions noticed this - I had a quick scan through the T&C but the above points were the only ones of interest that I spotted
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Post by transo on Jun 6, 2016 17:52:11 GMT
I've just placed a bid on a new FC loan part and was asked to accept terms and conditions. I know that I've not placed a bid on an SME loan for a while, so I might have missed this, but there were a few things in the terms and conditions that caught my eye: 1) The borrower has to pay interest from loan close - has pre-acceptance now been implemented? 2) Repay early, but less then 8 days before the next installment is due? You owe another month 3) Once a sum has been outstanding for 7 days or more, Funding Circle will charge an administration fee of up to 15% of the overdue amount (where borrowers are 4 or pore payments late) Has anyone else who is a bit more clued up of FC terms and conditions noticed this - I had a quick scan through the T&C but the above points were the only ones of interest that I spotted I've not seen any notification of an update, though was requested to accept an update just over a month ago so it might be that one. From memory 1) This has always been true, interest has been due from the earlier of the date the loan is accepted and drawn down or the date the loan finished (i.e. reaches 0:00:00 on the counter, not when it fills) 2) Not sure about this, I thought borrowers always had to pay interest in full for the next month if they repaid early, even if it was only a day or two after their last repayment. 3) I believe this has always been the case, not that I've seen any evidence of this being applied and certainly no evidence of it benefitting anyone other than FC (which is the only party the Ts&Cs imply would benefit).
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SteveT
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Post by SteveT on Jun 6, 2016 18:36:47 GMT
There were definitely amended T&Cs we were obliged to accept today before bidding. However, given the modest sum I now entrust Fiddling Conditions with, I couldn't be bothered to investigate further (not least because there was a rare Lesser Spotted Dubious E-loan displaying at the time)
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andyp
Stubborn Yorkshireman from the rhubarb triangle
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Post by andyp on Jun 6, 2016 19:34:26 GMT
Young Jack has just posted a link to a blogpost on the changes. I hope this doesn't break any forum rules link to FC term change blogpostI can't work out if this is their clumsy attempt at addressing late property loans or not and have asked for more explanation (never their strongpoint!) |
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Post by GSV3MIaC on Jun 6, 2016 19:51:59 GMT
I think it's quite legit to post it (JMHO). I note that it doesn't say anything about we lenders getting anything from this (except a better funded collection team), so no, it doesn't address penalty interest on later property loans, as far as I can see.
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SteveT
Member of DD Central
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Post by SteveT on Jun 6, 2016 20:47:36 GMT
Basically ISTM that FC will be taking (and keeping) a greater % of whatever payments a guarantor manages to make on any future defaulted loan. How that justifies the claim that it's not coming out of monies due to lenders is beyond me.
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blender
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Post by blender on Jun 6, 2016 22:51:41 GMT
Young Jack has just posted a link to a blogpost on the changes. I hope this doesn't break any forum rules link to FC term change blogpostI can't work out if this is their clumsy attempt at addressing late property loans or not and have asked for more explanation (never their strongpoint!) Just what we wanted. For all new property loans if they pay nothing at all for 90 days after they should have paid us all back, they will also have to pay FC up to 15% (where up to includes zero) of everything they owe us. That's much better. I do like to see FC failure rewarded.
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