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Post by bonfemme on Apr 12, 2016 6:27:50 GMT
21542 E filled in 3 minutes on 24th March, rejected 18 days later! Haven't had a 'thank you' yet from Fiddling Coffers for the interest free loan. So annoying. What has gobsmacked me however is something I read in a Trustpilot review of FC yesterday. The reviewer said: "DO NOT USE UNLESS YOU ARE 100% SURE YOU WILL TAKE THE LOAN!
I recently used the company to take out a loan for my business. I accepted the agreement, but could not find anybody to be a guarantor for my loan (I didn't know I needed one). I called and informed that I wouldn't be able to take the loan 5 days after I accepted the agreement because of this and they charged me £378 for the first month's interest but have 'kindly' waived the £1350 arrangement fee! The loan had not even landed in my account and the loan was not even finalised because I hadn't secured a guarantor. So why am I being charged for something I haven't been properly approved for yet? I am surprised they do not have a cooling off periods you are desperate! like all other loans. I had complained and they said that 'as the money had been held specifically for my loan, that would cover the investor's interest' - well then why not just charge me for the 5 days if that is the case??
Total rip-off - stay well clear unless you are desperate! "
Reply from Funding Circle
Published 06 March 2015
"Many thanks for taking the time to give us your feedback, which we always value and take on board. We have spoken with the account manager who looked after your loan application, and we can confirm having looked at the email trail, that you were told before the loan was listed on the marketplace that this was subject to a personal guarantee. The personal guarantee with your details was attached to the offer email.
In this case, you accepted the terms and investors bid to lend to you. We completely understand that you had a change of heart, but because the terms of the loan had been accepted and your loan was fully funded by investors who had bid to lend to you, it is only fair that investors who had their money tied up for the auction period, did not lose out on the interest that they would have earned elsewhere by lending to another business on the marketplace. I hope that this helps to explain why you were charged interest for the first month, following your cancellation of the loan." I've certainly not had a penny in interest following a loan not being taken up (that I know of). Has anyone out there?
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Post by flx123 on Apr 12, 2016 6:47:43 GMT
21542 E filled in 3 minutes on 24th March, rejected 18 days later! Haven't had a 'thank you' yet from Fiddling Coffers for the interest free loan. So annoying. What has gobsmacked me however is something I read in a Trustpilot review of FC yesterday. The reviewer said: "DO NOT USE UNLESS YOU ARE 100% SURE YOU WILL TAKE THE LOAN!
I recently used the company to take out a loan for my business. I accepted the agreement, but could not find anybody to be a guarantor for my loan (I didn't know I needed one). I called and informed that I wouldn't be able to take the loan 5 days after I accepted the agreement because of this and they charged me £378 for the first month's interest but have 'kindly' waived the £1350 arrangement fee! The loan had not even landed in my account and the loan was not even finalised because I hadn't secured a guarantor. So why am I being charged for something I haven't been properly approved for yet? I am surprised they do not have a cooling off periods you are desperate! like all other loans. I had complained and they said that 'as the money had been held specifically for my loan, that would cover the investor's interest' - well then why not just charge me for the 5 days if that is the case??
Total rip-off - stay well clear unless you are desperate! "
Reply from Funding Circle
Published 06 March 2015
"Many thanks for taking the time to give us your feedback, which we always value and take on board. We have spoken with the account manager who looked after your loan application, and we can confirm having looked at the email trail, that you were told before the loan was listed on the marketplace that this was subject to a personal guarantee. The personal guarantee with your details was attached to the offer email.
In this case, you accepted the terms and investors bid to lend to you. We completely understand that you had a change of heart, but because the terms of the loan had been accepted and your loan was fully funded by investors who had bid to lend to you, it is only fair that investors who had their money tied up for the auction period, did not lose out on the interest that they would have earned elsewhere by lending to another business on the marketplace. I hope that this helps to explain why you were charged interest for the first month, following your cancellation of the loan." I've certainly not had a penny in interest following a loan not being taken up (that I know of). Has anyone out there?
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Post by flx123 on Apr 12, 2016 6:55:29 GMT
Sorry for messing up the entry above, could not add my comment to the quote...
Here it comes anyway:
Standard procedure at FC: For loans that are not taken up, money is returned but no interest is paid. If this case on Trustpilot is genuine, FC would have a bit of explaining to do...
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Post by bollidear on Apr 12, 2016 7:23:51 GMT
It would not be beyond FC to shaft smaller investors even more than he already has. I'm happy to demand an explanation to this issue and in the meantime take the opinion based on the last years anecdotal treatment of smaller investor's, to believe FC have indeed ripped off investors even more. Its out there now for funding Circle to prove the Trust Pilot review wrong, but I don't think they will some how.
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blender
Member of DD Central
Posts: 5,719
Likes: 4,272
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Post by blender on Apr 12, 2016 7:27:27 GMT
It looks like this borrower refused to give a personal guarantee after he had accepted the loan, and draw down was delayed until the paperwork was received. To a lender this would look like a loan repaid within the first month with a full month's interest paid. Did that happen? If not then true FC would have to explain.
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indiana
New Member
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Likes: 1
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Post by indiana on Apr 12, 2016 8:46:14 GMT
This one sounds like it may warrant being moved to a separate thread so it doen't get lost in the E loan notifications - any thoughts moderators? Then we can see if we can track this loan down and determine whether those who bid on it did actually get the interest. If not, as others have said, some explaining will be due.
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am
Posts: 1,495
Likes: 601
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Post by am on Apr 12, 2016 10:59:08 GMT
It looks like this borrower refused to give a personal guarantee after he had accepted the loan, and draw down was delayed until the paperwork was received. To a lender this would look like a loan repaid within the first month with a full month's interest paid. Did that happen? If not then true FC would have to explain. Something similar seems to have happened last year. (There's a 3-star review from last June.) Perhaps FC should have a checklist on the web page where the borrower accepts a loan. (Have you set up the direct debit? Have you signed the personal guarantee? ....) Perhaps FC should add a COO/QM to their management team - I do get the impression that they're operationally shaky.
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Post by GSV3MIaC on Apr 12, 2016 12:11:02 GMT
This one sounds like it may warrant being moved to a separate thread so it doen't get lost in the E loan notifications - any thoughts moderators? Then we can see if we can track this loan down and determine whether those who bid on it did actually get the interest. If not, as others have said, some explaining will be due. As you see, I moved it (and changed the title). Feel free to keep us all updated with FCs responses to this.
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Post by Deleted on Apr 12, 2016 13:54:33 GMT
Reply from Funding Circle
Published 06 March 2015 "Many thanks for taking the time to give us your feedback, which we always value and take on board. We have spoken with the account manager who looked after your loan application, and we can confirm having looked at the email trail, that you were told before the loan was listed on the marketplace that this was subject to a personal guarantee. The personal guarantee with your details was attached to the offer email. In this case, you accepted the terms and investors bid to lend to you. We completely understand that you had a change of heart, but because the terms of the loan had been accepted and your loan was fully funded by investors who had bid to lend to you, it is only fair that investors who had their money tied up for the auction period, did not lose out on the interest that they would have earned elsewhere by lending to another business on the marketplace. I hope that this helps to explain why you were charged interest for the first month, following your cancellation of the loan." It is only fair then to pay lenders for cash lent to property loans, when these finally repay late, for each and every single one of the late days. Isn't it Funding Circle? Can anyone give me the link to this review?
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Post by Deleted on Apr 13, 2016 13:50:12 GMT
Whilst I have some sympathy for the borrower given the circumstances, it is further evidence that people need to read every term and condition of a legal document before they agree to it. When they 'accepted the agreement' they should have fully understood what they were agreeing to and that part of that agreement was providing a guarantor.
Clearly I haven't read the terms so can't say if FC were ambiguous or deliberately hid the commitment in terms of interest charged, but having worked in finance for most of my career, I am constantly astounded with the number of people who don't read contracts/agreements before signing them and then complain when terms are enforced or say 'sorry, I didn't realise' when they breach the term of a contract.
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guff
Posts: 730
Likes: 707
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Post by guff on Apr 13, 2016 18:34:27 GMT
Reply from Funding Circle
Published 06 March 2015 "Many thanks for taking the time to give us your feedback, which we always value and take on board. We have spoken with the account manager who looked after your loan application, and we can confirm having looked at the email trail, that you were told before the loan was listed on the marketplace that this was subject to a personal guarantee. The personal guarantee with your details was attached to the offer email. In this case, you accepted the terms and investors bid to lend to you. We completely understand that you had a change of heart, but because the terms of the loan had been accepted and your loan was fully funded by investors who had bid to lend to you, it is only fair that investors who had their money tied up for the auction period, did not lose out on the interest that they would have earned elsewhere by lending to another business on the marketplace. I hope that this helps to explain why you were charged interest for the first month, following your cancellation of the loan." It is only fair then to pay lenders for cash lent to property loans, when these finally repay late, for each and every single one of the late days. Isn't it Funding Circle? Can anyone give me the link to this review? I've checked my records and of the 50 or so that were rejected/re-listed/subject to technical error/Fobbed-off Completely, I do not appear to have been given anything for the £3500+ that was tied up for the auction period. Anyone got Natasha's e-mail address? Oh why bother with the minions, let's go to the top.... www.ceoemail.com/s.php?id=b-121266&k=570e90cc&c=Funding%20Circle%20CEO
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metoo
Member of DD Central
Posts: 555
Likes: 432
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Post by metoo on Apr 16, 2016 17:35:11 GMT
Whilst I have some sympathy for the borrower given the circumstances, it is further evidence that people need to read every term and condition of a legal document before they agree to it. When they 'accepted the agreement' they should have fully understood what they were agreeing to and that part of that agreement was providing a guarantor. Clearly I haven't read the terms so can't say if FC were ambiguous or deliberately hid the commitment in terms of interest charged, but having worked in finance for most of my career, I am constantly astounded with the number of people who don't read contracts/agreements before signing them and then complain when terms are enforced or say 'sorry, I didn't realise' when they breach the term of a contract. So far as I understand it, the issue is whether this auction was "drawn down" following acceptance by the borrower, with lenders being paid the month's interest, or whether the bids were cancelled before being drawn down and the interest pocketed by Fiddling Coffers? Which loan number was this? This was an SME loan, but property loans are often drawn down with the funds held by FC solicitors pending legal matters. The borrower becomes liable for interest once they accept the loan even if they never receive the loan money. Lenders do get paid interest for this. Unfortunately Natasha's answer refers to the "auction period" which raises the question of whether the loan was ever drawn. I was surprised that the loan book does not seem to give a date for when a loan is repaid or the number of payments made.
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