markm
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Post by markm on Oct 7, 2018 17:24:40 GMT
Has anyone submitted a formal Complaint and had a reasonable response from FS - i/e/ more useful than the evasive replies received via Live chat?
I'm will be raising major concerns about their lack of enforcement of default procedures for loans that are in many cases over a year overdue.
When the loan term is 6 months and the LTV increasing daily I can't see how they justify this being in 'the investors best interest' and I would like to know how they justify this (to the FCA if necessary after this complaint is made).
There are also various examples where where a loan has had interest paid for renewal after an initial term but then just left to overrun without any default imposed or renewal subsequently required (e.g. I'm in the Property in Trust - Renewal Loan - and when I enquired about whether there was any long stop for a loan to be put in default was told no - so presumably FS think they can keep investors funds invested indefinitely and the 6 months term is just a bad joke.. they've even given up on the monthly updates for that loan!
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arby
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Post by arby on Oct 7, 2018 17:51:05 GMT
That comaint is too generic. All FS need to say is that in their opinion, or the opinion of a broker/expert in the respective field, that there's a greater chance of full recovery through a slow and patient process as opposed to instantly placing the asset in an auction with no reserve.
Additionally, you've ignored the fact that the regulators are equally (arguably more) interested in protecting the borrower. They would definitely have something to say if FS started defaulting loans quickly without demonstrating that they have given the borrower every possible opportunity to meet their obligations.
Do FS sometimes show too much patience? Maybe, but it's not as simple as you made out. If you are going to make a complaint, then I'd advise concentrating on some specific examples.
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Post by brightspark on Oct 7, 2018 17:59:12 GMT
Has anyone submitted a formal Complaint and had a reasonable response from FS - i/e/ more useful than the evasive replies received via Live chat? I'm will be raising major concerns about their lack of enforcement of default procedures for loans that are in many cases over a year overdue. When the loan term is 6 months and the LTV increasing daily I can't see how they justify this being in 'the investors best interest' and I would like to know how they justify this (to the FCA if necessary after this complaint is made). There are also various examples where where a loan has had interest paid for renewal after an initial term but then just left to overrun without any default imposed or renewal subsequently required (e.g. I'm in the Property in Trust - Renewal Loan - and when I enquired about whether there was any long stop for a loan to be put in default was told no - so presumably FS think they can keep investors funds invested indefinitely and the 6 months term is just a bad joke.. they've even given up on the monthly updates for that loan! If you lodge a complaint FS is obliged to respond within a fixed time - have look at guidance notes issued by the Financial Ombudsman for how to set about it. you would need to be arguing that there had been gross negligence rather than the expression of an opinion that things were taking rather a long time.
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adrian77
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Post by adrian77 on Oct 7, 2018 18:57:48 GMT
I am very annoyed about the Landrover loan - we were told "As this means this is effectively a guaranteed return of 8% for 6 months investment"
well here we are over 4 months past the repayment date!
And we have had
well that is not going to happen is it - I anticipated a large Tory landside in the last election - didn't happen but I was not asking people to invest their money based on my anticipations.
I have twice complained to FS and all I have had is can be paraphrased as "we have no information but will ask for an update" - brilliant!
Any advice for the best way for me to escalate this - for me this is very close (at best) to deception.
I just hope this damn vehicle is appreciating rather then depreciating whilst in storage
As for the powerboat fiasco - don't get me started
Sleeper alert - I have more than a nibble in this one.
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SteveT
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Post by SteveT on Oct 7, 2018 21:01:30 GMT
I have twice complained to FS and all I have had is can be paraphrased as "we have no information but will ask for an update" - brilliant! Any advice for the best way for me to escalate this - for me this is very close (at best) to deception.
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debaura
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Post by debaura on Oct 7, 2018 21:17:48 GMT
I have complained to FS through the process and got a letter back from director Richard Luxmore.
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markm
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Post by markm on Oct 8, 2018 8:48:15 GMT
That comaint is too generic. All FS need to say is that in their opinion, or the opinion of a broker/expert in the respective field, that there's a greater chance of full recovery through a slow and patient process as opposed to instantly placing the asset in an auction with no reserve. Additionally, you've ignored the fact that the regulators are equally (arguably more) interested in protecting the borrower. They would definitely have something to say if FS started defaulting loans quickly without demonstrating that they have given the borrower every possible opportunity to meet their obligations. Do FS sometimes show too much patience? Maybe, but it's not as simple as you made out. If you are going to make a complaint, then I'd advise concentrating on some specific examples. Thanks for the response - yes I agree the complaint as I described it is too generic - I was just trying to get an initial idea if anyone had had a reasonable response through the complaints process. Maybe I just need to try and see what I get as some people have at least had a response... The specific loan I referred to in question has quite a bit more history to it - such that 'defaulting it quickly' doesn't really apply 1) originated as a standard 6 month loan August 2015 2) Renewed Feb 2016 (after 6 months) 3) Renewed and extended August 2016 (after 6 months) at which point I made my initial investment - partly due to the positive track record of timely repayments 4) Renewed Feb 2017 - When I increased my investment (again partly due to the track record of repayments) 5) The loan is due to repay or renew August 2017 but not this doesn't happen.... Then follows a string of ~ 30 updates... waiting for funds to renew, property marketed for sale - no offers... looking for alternative renewal funds... continuing to market... up to the last one in July 2018 "Although marketing continues there is still no firm offer on the table. We are continuing to investigate alternative options and hope to have some more specific information within the next two weeks." So it's over a year overdue, no updates for over 2 months - not even a long stop date when default will be initiated (according to FS customer support on Live chat). And I'd like some indication of when they will take any action to get my (our) money back for this '6 month' loan. Well I've pretty much written my complaints now so might as well put it in (!) but any comments welcome..
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Post by mrclondon on Oct 8, 2018 10:08:53 GMT
markm - I believe you are referring to Property in Trust - Renewal ( 3177181762) in its final incarnation. If you click on the 'Assets' tab you will see this text
There are also supporting legal documents attached to the loan to confirm this.
If the loan is defaulted it will be a 100% immediate capital write off as there is no asset to repossess and sell. This was known from the outset of the very first loan against this asset, redemption can only come from the sale of the asset by the borrower.
If you really feel making a formal complaint against FS is worthwhile, you might wish to consider if there are other loans that would stand moe chance than this one of a complaint being upheld.
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markm
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Post by markm on Oct 8, 2018 10:23:49 GMT
markm - I believe you are referring to Property in Trust - Renewal ( 3177181762) in its final incarnation. If you click on the 'Assets' tab you will see this text
There are also supporting legal documents attached to the loan to confirm this.
If the loan is defaulted it will be a 100% immediate capital write off as there is no asset to repossess and sell. This was known from the outset of the very first loan against this asset, redemption can only come from the sale of the asset by the borrower.
If you really feel making a formal complaint against FS is worthwhile, you might wish to consider if there are other loans that would stand moe chance than this one of a complaint being upheld.
Yes that's the on!. But if the default and forced sale route isn't an option for that loan - there must be some action that FS could take or effectively there is no security? FS seem to be suggesting (at least in the past) that there was some other action they could be taking I wondered if they 'defaulted' the loan whether that would at least increase the interest being charged and encourage the borrower to at least market the property at a price that might generate some interest in a sale... P.S. There is at least one other loan I'm in (Formby) which is in a similar (12 months past end date) status which might be a more standard complaint!
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adrian77
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Post by adrian77 on Oct 8, 2018 11:06:11 GMT
well here we are over 2 months later and still no more specific information
No offers for this property in this part of London? OK maybe not the asking price but I just don't believe this ...
This one looks very problematical to me - I am no property barrister but what happens if all members of a trust need to agree for a sale to proceed. The lender takes the money and laughs all the way to the bank?
Why does Whitehaven spring to mind?
Think I will add this one to my next FA league update.
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Post by mrclondon on Oct 8, 2018 11:17:13 GMT
No offers for this property in this part of London? OK maybe not the asking price but I just don't believe this ... I've just created a DDC thread with my notes on this one - the business operating in the ground floor retail unit beneath the 3 floor flat may be putting people off.
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Steerpike
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Post by Steerpike on May 22, 2019 14:34:28 GMT
If FS allow a loan to become seriously overdue, post no meaningful updates, and take no action to enforce default procedures it seems that, according to the terms and conditions, they can continue to assert for ever more that they "believe" that the best prospects for a recovery are to "continue to work with the borrower", even if such work is indistinguishable from inaction. Clearly, there is no argument against the beliefs of a FS Loan Manager however irrational. One of the reasons that almost all of the current loan book is totally illiquid. One can but snap at their heels. |
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Post by brightspark on May 27, 2019 16:23:40 GMT
Write off the loan(s). Close the account. Unpalatable truth. Sleep better.
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james21
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Post by james21 on May 27, 2019 16:42:05 GMT
I have raised formal complaints one of the directors signs the response, in sending it in I think you will know the what they will say, nevertheless it is important to complain, it may do some good, I would not be surprised if you asked them they said they dont get many complaints and assume most people are happy as they are
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petrichory
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Post by petrichory on May 27, 2019 16:45:54 GMT
Write off the loan(s). Close the account. Unpalatable truth. Sleep better. Is this your advice to a victim of fraud?
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