wuzimu
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Post by wuzimu on Sept 22, 2021 9:06:43 GMT
21 Sep 2021"The personal guarantor in this case has been declared bankrupt and we do not anticipate any future recoveries. The case is now closed." This perfectly illustrates why waiting around for FC recovery actions against the borrower / Guarantor was always a waste of time, as it is for most large FC loan defaults. If you want your money back, I believe the only affordable way is to bring a complaint to FOS about the misrepresentations made by FC in the loan promotion and FC negligence as agent subsequently. Worked for me anyway. Good luck.
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deltron
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Post by deltron on Oct 2, 2021 16:59:34 GMT
Anybody here with enough in this loan (or other defaulted FC property backed loans) to be motivated to make a FOS complaint?
As a service to members of this platform I will share how I got my money back from FC plus interest.
Hi there, I've still got a grand in the London loan that I would very much like to see again. You mention that FC paid you back on the London loan before the FOM got involved - could I ask how you managed that?
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wuzimu
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Post by wuzimu on Oct 2, 2021 20:34:39 GMT
As the decision on the FOS website explains FC repaid my net loss plus interest @8% because as the FOS complaint progressed, I was able to show substantial misrepresentations in the loan promotion that FC could not deny. In that case they repaid me probably so the Ombudsman did not go into details in the final decision....which gets published.
If you want to know what the misrepresentations were....PM me if yr interested. Im not writing a skeleton complaint but I'll give you the heads up.
BTW if anybody reads the loan promotion, then carefully considers what happened, you will see many statements in the loan promotion simply weren't true.
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rogerthat
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Post by rogerthat on Oct 2, 2021 22:08:11 GMT
As the decision on the FOS website explains FC repaid my net loss plus interest @8% because as the FOS complaint progressed, I was able to show substantial misrepresentations in the loan promotion that FC could not deny. In that case they repaid me probably so the Ombudsman did not go into details in the final decision....which gets published. If you want to know what the misrepresentations were....PM me if yr interested. Im not writing a skeleton complaint but I'll give you the heads up. BTW if anybody reads the loan promotion, then carefully considers what happened, you will see many statements in the loan promotion simply weren't true. As far as I recall FC repaid approx 61% of the original capital with no interest. Can you confirm that your FOS complaint recovered the (your) missing 40% principal invested ? Was the 8% interest on your original 100% capital or just the 40%..(the reason I ask is..."Please also note that the repayments for this loan are interest only, with the principal to be repaid in full at the end of the 8 month term" Incidentally..I note on my FC loanbook portfolio that these loans are currently accredited with an A graded risk band. I stand to be corrected but im (almost) sure that these were 'marketed' as A+ Lastly, I'm wondering why your interest on whatever amount you got back (awarded) was 8%..were the original loans were at 10% ? [ see below] Late Edit...Has this got anything got anything to do with my previous sentence. "We are still awaiting the credit approved offer and will update investors once it has been received. We can confirm that interest on this loan has increased by 2% which is applicable from the date of expiry. 05 Aug 2016 18:31:27" (from the repayments tab) Thanks
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wuzimu
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Post by wuzimu on Oct 3, 2021 10:04:11 GMT
rogerthatThe calculations is as follows... Given the misrepresentations the remedy is the investment contract should be unwound... Compensation is (Amount invested plus 8% interest from date of investment to date of payment by FC) minus (any amount returned by FC including capital and interest) So the 8% interest applies to the whole capital sum for the entire period mentioned. Why 8%? I chose that number because it is the standard interest Courts use for outstanding debts. FC did not challenge it. A similar calculation was also used for compensating the misrepresented Liverpool P* Building loan. The published FOS decision actually describes a slightly more complicated calculation for interest for that loan, but FC were unable to work it out and did not pay the award...so I worked the calculation based on the method above, told FC to pay the amount I calculated... or Court (as FOS awards can easily be converted to an enforceable Court Judgement),, and FC paid.And that's an end to my time with FC. With all the compensation my overall return was about 9%, was that rate worth dealing with the FC notion of 'treating customers fairly'? Hahaha NO!!! ** I found misrepresentations for every property backed FC I hold - all defaulted. So I could have argued every loan with success I believe. But I only did the London and Liverpool loans because the others were such small amounts it was not worth the time.
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Post by lexx on Feb 18, 2022 18:25:41 GMT
Hi Wuzimu, I have tried to message you via this board but can only message staff members no idea why but I would like to know what the misrepresentations are so I can pursue FC for my short fall. My email is ***************
Eternally grateful,
Lexx
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Post by Ton ⓉⓞⓃ on Feb 18, 2022 18:32:00 GMT
Hi Wuzimu, I have tried to message you via this board but can only message staff members no idea why but I would like to know what the misrepresentations are so I can pursue FC for my short fall. My email is ***************
Eternally grateful,
Lexx
Hi there, you'll notice that your email address has disappeared. wuzimu can message you, New Users can't message other Users. Hope that's okay.
Also, normally when you "Follow" someone on the forum you reveal your email address to them.
Moderation team
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Post by lexx on Mar 16, 2022 19:19:37 GMT
I have followed him but still cant message can you email me from my account details.
Cheers,
Lexx
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deltron
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Post by deltron on Jul 27, 2023 14:12:24 GMT
So, FC have upheld my complaint against them for misrepresenting the security in the investor report. Their compensation offer was to return outstanding capital plus 8% p.a from the date of the last interest payment in 2016, and a "Goodwill Gesture" of £100 on top.
The key detail in the investor report is that M*****n supposedly owned and ran the apart-hotel. The value of the security all rested on that being true. But FC themselves confirmed this was not the case in their loan update on 30th November 2020. Another company had been given a lease to the hotel (the security) at a peppercorn rent and that company ran the business. The upshot of this misrepresentation is the drastic reduction in the value of the underlying security, which when the loan failed caused investors to lose approx 39% of their capital. Knowingly or unknowingly the whole loan was founded on a lie.
I wrote not much more than a paragraph in my complaint. Seven weeks later they ruled in my favour.
I've referred my complaint to the FOS because I believe FC should pay compensatory interest on the entire capital sum invested in these loans, not just the money 'lost' from the administration process.
If the total loan amount was £1.6 million then by my estimation FC have got away with not refunding around £650,000 of lenders' money. Tack compensation on to that and it's well over £1 million.
Have at it.
(Massive credit to Wuzimu for pinpointing the key details) (The section in bold is the entirety of the argument I put to FC. I won't be responding to DMs asking for more detail, because there isn't any.)
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wuzimu
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Post by wuzimu on Jul 31, 2023 12:09:56 GMT
Yo Deltron,,, the description of FC offer to compensate you..
I'd say its fair you should get your lost capital back Plus interest on all the capital from the end of the loan (defaulted) to the time 61% was returned ( some time in 2020?). Plus interest of 8% on the remaining 39% capital from the date the recovery part was paid to the date FC pay you this compensation now. Plus £150 for stress and inconvenience.
*This isn't exactly how FOS would frame the calculation, but the result would be the same. n.b. 8% is the interest rate applying in english courts to debt and £150 is the amount FOS would award you for stress if you asked for it .
If you explain this to FC they'll probly pay you. I'd consider doing this (send FC a worked calculation with the amount they owe you , (say worked to end Aug 23) As FOS will take 2 years to process your complaint.
That is how i have gotten satisfactory settlements from FC. They are as dozy AF, and can't do maths. So you have to work the total out for them, then I've found they pay to end complaint.
Well done tho.
Regards Wuzimu
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