pickles
Member of DD Central
Posts: 94 
Likes: 57
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Post by pickles on May 13, 2017 17:08:37 GMT
This has to be the dodgiest default on the platform.
Top notch credit score, 70 years trading, just gone from two offices to seven, turnover rising from £1m to £5m over three years, with healthy profits...
They then take out half a million loan plus 200k from FC (plus where else??) and an £800k overdraft and declare themselves bankrupt. I guess as a solicitor you'd know how to get away with it!
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Post by nickdavies on May 13, 2017 18:22:50 GMT
The comments bellow the Law Society Gazette article from 16 March are, shall we say, interesting.
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Post by grahamreeds on May 14, 2017 8:12:26 GMT
For those who don't get the LSG, could you post linkage to article online or share a scan of the page.
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Post by nickdavies on May 14, 2017 8:23:03 GMT
Posting a link might break the forum rules but try searching on say B** C** law gazette.
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fp
Posts: 1,008
Likes: 853
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Post by fp on May 14, 2017 11:44:28 GMT
I'm not in the loan, but curious to read the article to get a feel for how things are going, if someone could inbox me the name of the borrower it would be appreciated.
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pip
Posts: 542
Likes: 725
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Post by pip on May 14, 2017 15:59:45 GMT
I'm not in the loan, but curious to read the article to get a feel for how things are going, if someone could inbox me the name of the borrower it would be appreciated.Me too please 
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voss
Member of DD Central
Posts: 153
Likes: 84
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Post by voss on May 14, 2017 17:41:06 GMT
"I'm not in the loan but curious to read the article to get a feel for how things are going" - I'm sure it's not just schadenfreude!
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fp
Posts: 1,008
Likes: 853
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Post by fp on May 14, 2017 18:01:49 GMT
"I'm not in the loan but curious to read the article to get a feel for how things are going" - I'm sure it's not just schadenfreude! Just to be clear, its more a case of having a 5 figure sum in the SME income fund, so the way FC deal with matters does have a bearing on my investment there.
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dorset
Member of DD Central
Posts: 281
Likes: 187
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Post by dorset on May 15, 2017 16:17:36 GMT
The loan was defaulted in December 2016 after only two payments. The practice was sold in March 2017. Not sure where the money from the sale went but as of today two of the partners have declared themselves bankrupt and a bankruptcy hearing is scheduled for the third. The SRA are investigating and the official receiver is conducting preliminary investigations into prior transactions and possible evasion.
This was an A+ loan for over £200k and will be a real test of how aggressively FC pursue a loan that stinks to high heaven. It also raises major issues of the nature of FC's DD in classifying the loan as A+ rather than E-
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sussexlender
Member of DD Central
Cheat seeking missile
Posts: 550
Likes: 916
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Post by sussexlender on May 16, 2017 6:31:43 GMT
Hi dorset.
Many thanks for the update which is very helpful.
Regards, SXLR
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Post by gidoppp01 on May 16, 2017 9:12:36 GMT
The loan was defaulted in December 2016 after only two payments. The practice was sold in March 2017. Not sure where the money from the sale went but as of today two of the partners have declared themselves bankrupt and a bankruptcy hearing is scheduled for the third. The SRA are investigating and the official receiver is conducting preliminary investigations into prior transactions and possible evasion. This was an A+ loan for over £200k and will be a real test of how aggressively FC pursue a loan that stinks to high heaven. It also raises major issues of the nature of FC's DD in classifying the loan as A+ rather than E- I don't like the defaults. I believe the only incentive FC is fees. One is funding the loan to 100% as quickly as possible and selling the loan on the secondary markets asap. The real thing I don't like about FC is the statistics, it only gets updated every quarter, hence they have 3 months to play with the numbers.
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oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
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Post by oldgrumpy on May 16, 2017 9:52:38 GMT
A+ band and defaulting after two payments. So much for Funding Circle's expertise in assessing borrower risk. Top tier (not) like that other solicitor!
Good job I lend nothing now based on what FC says and does.
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dorset
Member of DD Central
Posts: 281
Likes: 187
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Post by dorset on May 16, 2017 12:43:10 GMT
Given that £22k of this loan was funded through the BBA then the taxpayer (ie all of you readers) is also on the hook for this one.
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Post by nickdavies on May 18, 2017 9:00:11 GMT
Given that £22k of this loan was funded through the BBA then the taxpayer (ie all of you readers) is also on the hook for this one. My guess is that the taxpayer was on the hook from the beginning. They bought an estate agents out of administration last year. It was in hock to the revenue for £422,000, and that's not half of it. One wonders who the revenue are chasing now.
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