benaj
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Post by benaj on Mar 6, 2020 17:11:06 GMT
Just a Yes or No
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huxs
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Post by huxs on Mar 13, 2020 15:53:59 GMT
Definitely clearer with todays repayments giving a good breakdown and one thing I had not noticed before was that FS are getting 5% from each recovery, why and where is it going ?
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mariner
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Post by mariner on Mar 13, 2020 16:18:23 GMT
Definitely clearer with todays repayments giving a good breakdown and one thing I had not noticed before was that FS are getting 5% from each recovery, why and where is it going ? Was going to post exactly the same question Surely FS can't be retaining these fees...can they? These should be distributed to lenders in the loans I would have though?
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09dolphin
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Post by 09dolphin on Mar 13, 2020 16:42:37 GMT
Definitely clearer with todays repayments giving a good breakdown and one thing I had not noticed before was that FS are getting 5% from each recovery, why and where is it going ? Was going to post exactly the same question Surely FS can't be retaining these fees...can they? These should be distributed to lenders in the loans I would have though? I'd be happy if FS had to take the same "haircut" that investors have to take.
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Post by overthehill on Mar 13, 2020 16:47:09 GMT
Isn't the 5% just the normal cut that FS was taking before for every loan and is now being put into the creditors coffers. FS were only supposed to take their cut when the investor's capital and interest was repaid in full, do we know if this is still being honoured?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 13, 2020 19:40:07 GMT
It's the in the t&C's but seems to be a dispute over when it should be taken as doesn't seem to rank ahead of capital. CC & FSAG are on the case with admin.
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kielbasa
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Post by kielbasa on Mar 14, 2020 9:01:41 GMT
Isn't the 5% just the normal cut that FS was taking before for every loan and is now being put into the creditors coffers. FS were only supposed to take their cut when the investor's capital and interest was repaid in full, do we know if this is still being honoured? It is now seems that charging investors 5% on asset sales (rather than charging borrowers) started at least a few months before CG&Co came on board. However, this fact was hidden from investors by the senior personnel at FS, for obvious reasons. From the Terms and Conditions: 8.3 FundingSecure does not charge Investors any fees or commissions."End of", I think, is the correct legal term.
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Post by overthehill on Mar 14, 2020 9:28:40 GMT
Just clarifying as I misunderstood the original point which was why FS was taking a 5% cut on recoveries. I was referring to FS likely 5% interest on top of the investor interest rate for repaid/completed loans.
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benaj
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Post by benaj on Mar 18, 2020 14:22:01 GMT
I didn't expect a.Covid-19 update.
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aj
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Post by aj on Mar 18, 2020 15:30:03 GMT
We are aware that, following a number of loans being closed, there is a growing discontent with the deduction of the 5% Administration Fee due to FundingSecure Limited.
At the outset of the Administration, the Administrators sought legal advice regarding the distribution of funds, and upon a review of the terms and conditions it was confirmed to the Administrators that the 5% was a valid deduction prior to funds being made available to investors. As a result of subsequent correspondence from a number of investors, the Administrators have obtained a further opinion from a second independent firm of solicitors, who have concluded with the same view that the 5% is deductable.
Given the continued correspondence being received on this particular point, the Administrators are taking further advice, and will advise investors as and when additional information is available. In the interim, and in the interests of closing off loans and making funds available to investors, the 5% will continue to be deducted to enable withdrawal requests to be made and processed. Without this, distributions would have to cease.
Further updates will be posted in due course.
Playing along with the solicitors (IMHO incorrect) opinion that the 5% deduction is valid, CGs fees should be taken out of this instead of being charged to investors in addition.
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