Gruff
Posts: 63 
Likes: 68
|
Post by Gruff on Sept 27, 2017 16:51:46 GMT
27 Sep 2017
"We have been trying to trace the borrower to no avail, we have left the number of messages and emails to contact us. If the loan falls 4 months in arrears then there is a great possibility that the loan will be defaulted. We will continue to trace the borrower for payment and will update lenders when we have any further information and we thank investors for their patience."
I don't know what to say anymore, I really don't, arrggggghhhhhhhh..
Loan 24668
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Sept 27, 2017 18:24:17 GMT
I don't see the problem as the chap is clearly very busy making money and far too busy to deal with minor silly details such as repaying FC (us!). Absolutely no need to default this loan now as my bank manager would be more than happy to wait for 4 months before possibly defaulting my commercial loan...there may be those cynics amongst us that think he may have done a runner given that he seems to want to be uncontactable. I guess this loan falls into the "balanced" category?
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Sept 27, 2017 21:36:35 GMT
It seems to be an 'A' loan and so could be 'conservative'. A 60 month non-limited borrower in a retail business - according to the loan book. But did make 10 repayments before ceasing. Maybe they mean missing 4 repayments (3 months late) rather than four months.
|
|
maxmarengo
Member of DD Central
Posts: 96
Likes: 28
|
Post by maxmarengo on Sept 28, 2017 12:24:00 GMT
Reading through the new Terms and Conditions I see that if the assets recovered after a default do not cover the cost of recovery, FC will ask us to pay the difference.
|
|
Gruff
Posts: 63
Likes: 68
|
Post by Gruff on Sept 28, 2017 15:06:05 GMT
It seems to be an 'A' loan and so could be 'conservative'. A 60 month non-limited borrower in a retail business - according to the loan book. But did make 10 repayments before ceasing. Maybe they mean missing 4 repayments (3 months late) rather than four months. Got a response from FC on this. It is 4 months, effectively 9th November before a default is considered; that would mean 5 payments will have to be missed. That's a lot of patience to be thanked for
|
|
Gruff
Posts: 63
Likes: 68
|
Post by Gruff on Sept 28, 2017 15:20:13 GMT
Reading through the new Terms and Conditions I see that if the assets recovered after a default do not cover the cost of recovery, FC will ask us to pay the difference. Where did you come across this? I have only come across the following "12.11. In the event that the Security Holder's costs and expenses are not paid out of proceeds recovered from the Borrower and any Guarantor, you agree that you will pay all the costs and expenses reasonably incurred by the Security Holder in proportion to the amount of your Loan Part as a percentage of all outstanding Loans secured by the same Security. Y ou will only be responsible for payment of such costs out of the proceeds of any recovery from the relevant Borrower and Guarantor." If you're correct, then that's a system ripe for abuse, and I'll be selling up PDQ.
|
|
|
|
Facepalm
Sept 28, 2017 18:31:36 GMT
via mobile
Post by grahamreeds on Sept 28, 2017 18:31:36 GMT
Has anyone fired off a question to FC about this and what do the other sites with similar business model do? However, to me it reads: if the recovery costs us £500 and the borrower and guarantor gives us £400 you get jack  . Which also means: if the recovery costs us £500 and the borrower and guarantor gives us £600 you get to share £100 between you (next to jack ). |
|
|
|
Post by p2perrr on Sept 29, 2017 7:37:53 GMT
T&Cs
11.12. If we have designated a Loan as a property finance loan that is secured by Security, the Borrower will, at its own expense, execute and do all necessary things to perfect and protect the Security before and after enforcement. Security granted in connection with property finance loans will be held by Funding Circle Property in accordance with clause 11.6. If the realisation proceeds from the enforcement of property finance Security are not sufficient to discharge all of the Borrower's obligations, each Investor will only be entitled to receive its proportionate share from the realisation proceeds after the relevant Security enforcement costs have been paid. If these costs cannot be recovered from the Borrower, each Investor must pay the Security Agent and the Security Holder's costs on a proportionate basis.
11.13. If we have designated a Loan as an asset finance loan, it will be used by the Borrower for the purchase of business assets. The asset finance loan will be repaid by the Borrower under the applicable conditional asset sale or lease agreement to Funding Circle Asset, which will act as asset financier for the assets. The Borrower is required to pay the asset procurement charge and finance arrangement charge for Funding Circle Asset. To manage any repayments set out at clause 12 (Enforcement of Security), Funding Circle Asset will hold and manage any sums realised from the sale of the assets. If the asset sale proceeds are not sufficient to discharge all of the Borrower's obligations, each Investor will only be entitled to receive its respective proportionate share from the proceeds. Funding Circle Asset is entitled to be paid for its costs from the asset sale proceeds. If these costs cannot be recovered from the Borrower, each Investor must pay Funding Circle Asset's costs on a proportionate basis.
I think these are what maxmarengo is referring to. (I did a facepalm when I read them ... and then promptly forgot all about it.)
|
|
Gruff
Posts: 63
Likes: 68
|
Post by Gruff on Sept 29, 2017 8:04:21 GMT
T&Cs 11.12. If we have designated a Loan as a property finance loan that is secured by Security, the Borrower will, at its own expense, execute and do all necessary things to perfect and protect the Security before and after enforcement. Security granted in connection with property finance loans will be held by Funding Circle Property in accordance with clause 11.6. If the realisation proceeds from the enforcement of property finance Security are not sufficient to discharge all of the Borrower's obligations, each Investor will only be entitled to receive its proportionate share from the realisation proceeds after the relevant Security enforcement costs have been paid. If these costs cannot be recovered from the Borrower, each Investor must pay the Security Agent and the Security Holder's costs on a proportionate basis.
11.13. If we have designated a Loan as an asset finance loan, it will be used by the Borrower for the purchase of business assets. The asset finance loan will be repaid by the Borrower under the applicable conditional asset sale or lease agreement to Funding Circle Asset, which will act as asset financier for the assets. The Borrower is required to pay the asset procurement charge and finance arrangement charge for Funding Circle Asset. To manage any repayments set out at clause 12 (Enforcement of Security), Funding Circle Asset will hold and manage any sums realised from the sale of the assets. If the asset sale proceeds are not sufficient to discharge all of the Borrower's obligations, each Investor will only be entitled to receive its respective proportionate share from the proceeds. Funding Circle Asset is entitled to be paid for its costs from the asset sale proceeds. If these costs cannot be recovered from the Borrower, each Investor must pay Funding Circle Asset's costs on a proportionate basis.
I think these are what maxmarengo is referring to. (I did a facepalm when I read them ... and then promptly forgot all about it.)
Cheers p2perrr If my interpretation of 12.11 is correct, investors liability is limited to the value of their loan part; as per grahamreeds insight 12.11. In the event that the Security Holder's costs and expenses are not paid out of proceeds recovered from the Borrower and any Guarantor, you agree that you will pay all the costs and expenses reasonably incurred by the Security Holder in proportion to the amount of your Loan Part as a percentage of all outstanding Loans secured by the same Security. You will only be responsible for payment of such costs out of the proceeds of any recovery from the relevant Borrower and Guarantor.I'll email FC to check (don't fancy owing money to collect money if you catch my drift) Edit: response from FC "The investors will never owe money and losses cannot exceed funds invested, this section in the terms and conditions explains that recovery cost are take from the recovery payment before the remaining recovery is distributed to investors." "If recovery costs are greater than the recovery payment taken the shortfall will be covered by Funding Circle and not the investors." I hope that clarifies things, one can lose all of one's investment but nothing more
|
|
|
|
Post by yorkshireman on Sept 29, 2017 15:29:20 GMT
How fascinating, I’d never heard the expression “facepalm” before reading this thread.  |
|
|
|
Post by p2perrr on Sept 29, 2017 20:44:21 GMT
"‘Eee by gum" then |
|
.
