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Post by dazp70 on May 29, 2020 10:10:08 GMT
Mail from FC
Dear Sir,
Thank you for getting in contact with us.
I am pleased to confirm we are offering payment holidays to businesses which are assessed and offered on a case by case basis.
We have temporarily paused the secondary market, which means you are unable to sell your loan parts to other investors. This is part of our ongoing work to protect investor returns as a regulated platform, it’s important to ensure loan parts sold on the secondary market are sold at prices appropriate to how the economy may perform.
The ongoing situation currently presents a number of significant unknowns, for example how long the restrictions facing small businesses will last or how severe any economic impact will be.
As loans sold to other investors on the secondary market currently can’t reflect how these unknowns may impact the businesses you lend to, we consider it prudent to pause the market to protect returns while we continue to evaluate COVID-19s potential impact on the economy.
As this is a rapid moving situation it is something we will continue to progressively monitor the situation and have more certainty in how the developing economic situation will impact the businesses investors lend to.
I hope this is clear and helps clarify, however should you have any further queries, please do not hesitate to contact us.
Kind regards,
Funding Circle
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adrian77
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Post by adrian77 on May 29, 2020 10:38:44 GMT
I thought they had already offered this option to many businesses e.g. Princes Building before covid 19 !
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ashtondav
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Post by ashtondav on May 29, 2020 11:18:03 GMT
Many took a payment holiday before the first payment. FC - fecking
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Post by shanghaiscouse on May 30, 2020 8:35:31 GMT
On a serious note - this is why your defaults have not been skyrocketing. But after this invitation to moral hazard has expired, the losses will pile up faster than ever.
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adrian77
Member of DD Central
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Post by adrian77 on May 30, 2020 17:30:16 GMT
wise words as fellow scouser Confucious would approve of...
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dorset
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Post by dorset on Jun 3, 2020 9:02:54 GMT
What’s interesting is that since the middle of May I have had no less than 15 early and full repayments.
These were all pre 9/2017 and about 60% repaid. Clearly FC is refinancing these through Cbils to show the government how clever they are at launching the scheme.
Also worth noting about my remaining 371 pre 9/2017 loans - 126 of these are late and 61 of these have had the risk band removed.
However in May I only had one default. Big problem when the loan forgiveness ends. Also interesting that FC is forgiving my loans without my consent.
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Post by shanghaiscouse on Jun 3, 2020 11:02:32 GMT
I guess the technical term isn't forgiving, its forbearing? I only had one loan refinance, I was very excited to see it and hoped for a flood of similars but no such luck. I think it may be because I sold all my good loans (I had over 240k at one point, now down to 12k) and these ones were the odds and ends. I haven't had defaults either for a couple of months but that is due to forbearance I assume. I expect carnage once the various free money schemes end.
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dorset
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Post by dorset on Jun 3, 2020 16:36:32 GMT
Exactly, we can all accept a degree of forbearance on distressed loans but the danger with FC is that it can all get out of hand and turn into forgiveness (with your money of course).
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