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Post by markp2p on Jul 5, 2017 17:17:28 GMT
Those are pawnbroking loans for a few quid. All of my loans on Funding Secure are secured by mortgages over property worth £100,000s. To find out that FundingSecure's terms and conditions state that loans are on a non-recourse basis is the final nail in the coffin (although it was already pretty securely nailed). That is crass incompetence. Edit, I see that even a high street pawnbroker does sometimes sue the borrower: "Unless a full credit check has been undertaken, which is unlikley, the customer is not chased for any debt and will never pay more than the value achieved when the item is sold."
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447 
Likes: 945
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Post by stub8535 on Jul 5, 2017 17:30:11 GMT
I think the terms and conditions, as with lots of the FS platforms information has the legacy of truth when the platform started as a pawn rich one.
They have had several hints from me over the years about errors or adjustments that they need to t and c 's etc but, as is usual for them, they have ignored the guidance.
Not all loans on the platform will be under pawn conditions. It would be interesting to see the loan contracts terms for each type of loan.
The train items, sparklies, books, art etc lend themselves to pawn type loan agreements. Property and bridging loans do not.
Wonder if Pandoras box has been opened here in order to chase Ulysses on His neverending journey?
Thank goodness I am 80% disinvested already.
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merlin
Minor shareholder in Assetz and many other companies.
Posts: 902
Likes: 302
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Post by merlin on Jul 5, 2017 17:50:56 GMT
What do you realistically expect? FS is lending to the very lowest in the food chain of borrowers. Think about it - who goes to a pawn shop? If the loan is in default then I expect FS to take steps to enforce the security against which I am lending. I differ from most lenders in that I literally could not care less about updates, all I care about is timely repayment by the borrower and if not then enforcement of the security by the platform as soon as they are legally entitled to do so. If that is insufficient to repay the loan then I expect FS to proceed to a judgment debt against the borrower and a bankruptcy / insolvency petition. FS have shown themselves completely unwilling to do so, so they have lost my business. People go to a pawn shop when they have assets which they will lose if they fail to repay the loan in a timely manner. That doesn't seem to be happening on FS. I would agree with you if everything on FS was by nature pawn business but the bulk by value these days is bridging finance of one sort or another and these are two different beast altogether. Yes with pawn repossession is one option with extension being another. This is not necessarily the case with bridging finance and is usually much more complicated. Ultimately it comes down the knowledge of the provider as to what is the best solution. So for the you the question must be do you trust FS?
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