Taking out loans the month before you go bust

I think you need to understand FCs business model better.  They NEVER take assets as security, even when they are available.  They only ever take a director's personal guarantee.  Therefore the last thing they want to do is to sue a director because then it makes the guarantee harder to enforce.  That's why you will rarely, if ever, see FC suing even obvious scammers.  Normally by then the scammer will have secreted away the money and the chances of getting anything back versus the cost of the action are remote.  Don't forget, FC charges are capped at 40% of any amounts recovered when it enforces security to cover the cost of a bunch of activities that are, from its point of view, a waste of time because losses don't fall on them, they only fall on investors.  So there is only really downside risk to them in pursuing recoveries, they don't stand to gain much as any gains would accrue to investors and their costs are capped.  They'd much rather focus on the growth which is the story they told in the IPO, trying to maximise the recoveries for investors on bad loans isn't a priority for them.

They don't even use google street view to see if the company exists at the premises it says it occupies.  I have a 350k loan to a tv repair (? amazing anyone still does this - assuming that they ever did do this, that is) operating out of literally a lean-to shack in the countryside.  What a surprise they went into voluntary liquidation after 4 months and the cash all disappeared.

Security is for wimps; FC go Fully Commando.

54439 was/is a used car sales co in Wales. Took out £53k on 10 Apr 18 for 60 months and could not make a repayment of £1165 on 10 May. Has never paid a penny, FC still chasing the guarantor. Indication of some' difficult circumstances' - possibly their dragon died.

Profit in accounts Feb 17 was 23K, net worth about the same, but they had already borrowed £35k elsewhere (probably secured on the stock) when applying to FC and net worth would be negative. Computer says yes! Band C 11.5%.

Word gets round that you when you are in trouble you can take an FC loan with no security, based on old figures with no questions asked, and repayments are optional, and FC do not have the resources of motivation to be tough on the guarantor = 'underperforming cohort'.

£90 I will never see again.

I was not suggesting that, and have no information. But I remember 'crappy scrappy' where there was a subsequent criminal conviction directly connected to the loan use. 

Sometimes FC's lending offers look a bit like a garage leaving a customer's car unattended with the doors open, the keys in the ignition, and the engine running.

Of course it is all much better in 2019 - perhaps I should re-invest.

They certainly did - It was my Dad's apprenticed trade. Mind you, he was in his mid-80s when he died a few years back.

Indeed that is always the issue, these companies get the loan money then - whoosh - the cash disappears and somehow cannot be recovered during the receivership. Its clearly fraud.