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Post by thehappy1nvestor on Sept 11, 2014 19:52:43 GMT
From FC website: The borrower has paid £50,133, of the £53,953 of principal remaining on this loan, however, he is disputing the outstanding amount required to settle the loan in full. The borrower has been unresponsive to our requests for the final sum, so we are defaulting the loan in order to commence legal action against the guarantor. We will distribute the funds we have received today. An email has been sent to all affected investors.
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baldpate
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Post by baldpate on Sept 11, 2014 20:37:34 GMT
I don't have any exposure to this loan, so no personal axe to grind either way. I'm all for robust action against culpable defaulters, but I must say I'm surprised that FC would consider initiating legal action for what is (relatively) such a small sum : it doesn't seem a very cost-effective use of what must be limited in-house resources, when there are far greater offenders to be hounded pursued.
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blender
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Post by blender on Sept 11, 2014 21:14:52 GMT
I don't have it either, but I am starting to have sympathy with FC who are criticised for not chasing debts and now perhaps for chasing debts. The money belongs to fellow lenders, so I see FC's obligation to chase what they think they can recover of lenders' money, especially as this seems to be a case of won't pay rather than can't pay. Better to encourage them to take action in all cases, and let them make the case about limited resources and to attempt to justify going only for the low hanging fruit, imho.
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Post by bracknellboy on Sept 12, 2014 7:26:40 GMT
but on the other hand....they are defaulting the loan which means it goes to their recoveries group, which in turn means that they can charge fees out of any further recoveries (and presumably charge those fees on to the guarantor assuming he has the money to pay). They may not even be using their own in house resources for the legal chase, other than initiate and monitor. So one can argue no harm done to lenders on the loan, very small harm done to FCs resource availability, and worth threatening the relevant legal action to see whether it gets a response from the guarantor.
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wysiati
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Post by wysiati on Sept 13, 2014 20:36:41 GMT
From FC website: The borrower has paid £50,133, of the £53,953 of principal remaining on this loan, however, he is disputing the outstanding amount required to settle the loan in full. The borrower has been unresponsive to our requests for the final sum, so we are defaulting the loan in order to commence legal action against the guarantor. We will distribute the funds we have received today. An email has been sent to all affected investors. Any treatment of a distribution as a "Recovery payment" when the funds had already been received or when they were already known to be in the process of being prepaid is just cynical and potentially misleading. It still does not change the overall complexion of FC recovery efforts which remains one of the areas of operations with the most substantial scope for improvement. 
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