11025
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Post by 11025 on Sept 19, 2017 15:21:04 GMT
I am interested to know if when a P2P borrower defaults on a loan and the item has to be reclaimed there is any marker put against them or any effect to credit score etc as you or I would receive if we defaulted on a bank loan ?
Hopefully someone in the know can enlighten me
thanks
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fp
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Post by fp on Sept 19, 2017 15:30:14 GMT
A lot of that would boil down to what action the platform takes against the borrower I would expect, it could lead to insolvency courts in the case of and SPV set up for a property development for instance, this would leave a mark on the directors cards at CH for anyone searching info to drop on, or int he case of individuals it could maybe result in a CCJ if the lender pursued the debt through the courts successfully,
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11025
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Post by 11025 on Sept 19, 2017 15:38:17 GMT
thanks for the reply -
I see the CCJ bit , but didn't know say for instance if the recovery process went ahead without a court ruling and there was a short fall that was taken by the platform and the Lenders would there be any mark or way that other platform or lender could recognise this borrower as a potential future problem for them ?
cheers
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Post by davee39 on Sept 19, 2017 15:47:13 GMT
I am guessing a bit here, but when you mention 'item reclaim' you could be referring to a pawnbroking loan, or I assume, a secured personal loan.
With a pawnbroking loan the item is pledged as full value for the loan, there is no obligation on the borrower to repay, subject to forfeit of the pledge, (hence no black mark) and the lender assumes all risks when valuing the pledge. I was with FS in the early days when all loans were pawnbroking loans, but I have not followed the higher rate/ higher risk platforms recently.
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11025
Member of DD Central
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Post by 11025 on Sept 19, 2017 16:10:38 GMT
thanks
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