I recently did an audit of the loan comments associated with problem loans on one of my FC accounts, I counted 46 loans where updates were long overdue. Most of these FC had set a time frame that they would report back and have missed this by in most cases several months.
It does seem like reading the comments reminds you how little FC are doing on some of the recoveries. Possibly less than nothing.
It does nothing for your financial position, but raises your blood pressure a treat.
e.g. Number: 3603 "We S**** Do You Proud" is an interesting one.
I was somewhat annoyed by the comment, 15th May 2019: " ... The final report from the Liquidator shows that there were insufficient funds to make a distribution to
unsecured creditors. As the loan
was an unsecured loan to the business, the investors claim
ranks as unsecured; and there will be not be a distribution to investors." and "We will provide the investors with a further update in June 2019"
I gave FC the benefit of the doubt and raised this to their attention, other than a "we'll look into it" and a "How did we do?" survey email, nothing happened. No update to comments. No reply email.
So FC are okay with that apparent complete misinformation being on the loan comments.
Original Loan: "Asset security:
All asset security".
Original Loan: "The principal reason we are safe to lend to is that the loan
will be secured on the property to which it relates"
Oct 2013: "The loan is first and foremost
guaranteed on the property to which it relates, as well as the other tangible and intangible fixed assets held by R***** S******** Limited"
"Funding Circle (Staff): 27 Sep 2013 17:51 - The company director is providing a personal guarantee for £60,000 in addition
to the all assets security agreement. FC"
So I'd say that it
was a secured loan, with me so far? So when the loan went wrong, what happened?
Mar 2016: "Funding Circle
has a secured charge against the Borrower's assets"
14 Apr 16: "It has been noted that the Borrower's principal asset (ver which Funding Circle held security) was
sold prior to the liquidation with the proceeds of sale being utilised in the payment of various other debts. THe Liquidator is investigating this matter and will bring any available preference claims against third parties to recover funds due to Funding Circle/it's investors."
OK, this is that third party debt order stuff, right? As the borrower sold an asset they didn't actually have the right to, it can be recovered from the new "owner(s)".
"Mar 17: We confirm that the "Interim Charging Order" has now been made "Final" by the Court. Therefore, the
investors' position is now secured."
"8 May 17: It appears that there has been an overlap between the guarantor
selling the property and the court granting the Final Charging Order to us."
And that would be why they didn't bother providing the promised update in June 2019 -- it's too embarrassing to admit that they screwed up twice, let our "security" disappear, haven't managed to recover anything, and then tried to smooth over that mess with recent re-writing of history.
It's obviously seen as much better to just pretend it didn't happen, and have people comment publicly about how inept and inaccurate FC are. Like this.
Fumbling Carelessly. Shame on you!
