Business & Investment

GRACE ON THE CASE: Still waiting for £ 7k to be repaid from the funding circle

In 2014, I invested my mother’s savings of £ 15,000 in a peer-to-peer lending company, Funding Circle. Since then, I have invested more, totaling £ 26,000 as of January 2020. I managed this in her name using the power of attorney and another email address.

She died sadly in April 2020 as the pandemic worsened. Due to market volatility, the funding circle has stopped selling loans. That is, individual investors can only withdraw money if the borrower repays the loan.

In September 2020 I sent a new bank account verification document and details. I was promised regular renewals and repayments, but despite repeated promises, Funding Circle releases money only when I chase.

Currently, £ 6,900 is invested and there is no end to when everything will be repaid. what can I do? Via TF, email

Funding circle customers are waiting for their mother’s funds to be repaid a year after her mother’s death.

Grace Gausden, a consumer expert at This is Money, replies: First of all, I’m sorry to hear the stress you have endured when your mom died because of the slow response of the funding circle.

So far, you’ve received £ 20,250 of the life savings you’ve invested on behalf of your mother, but you’re still waiting for most of your money to come back.

You have been chasing the company for continuous updates for over a year.

Every time I get a promise from different people, I don’t get any money until I finally chase after it.

Investors said they were waiting for the borrower to repay the loan before raising money, given the terrible circumstances that the company’s pandemic stopped selling the loan.

However, this situation has been going on for months and there was no real information about when it could be expected to be fully repaid.

Grace of the case

In our weekly column, this highlights companies where Money consumer expert Grace Gausden addresses readers’ issues and is doing both the good and the bad.

Do you want her to investigate the problem, or do you want to praise the company for traveling that extra distance? contact:

grace.gausden@thisismoney.co.uk

Another problem arose when the Funding Circle sent some miserable emails to her mother, warning her of the change.

This is despite the fact that you have a power of attorney and the company knows she has passed.

In this case, you complained that it never happened, and thankfully you say it never happened.

He also complained about the service he received, asking what thoughts were given to deal with the deceased investor when the decision was made to stop selling the loan. But you didn’t receive the answer.

Instead, you have more than 800 accounts in the name of the dead investor and the funding circle has been advised to take over their transaction fees.

Throughout this issue, you are embarrassed during difficult times, receive only broken promises from the funding circle, and feel that no one is responsible for active updates.

You say you were offered £ 100 compensation, but you refused because you were so angry.

The funding circle apologizes for the error and has since ensured that the customer is repaid.

The funding circle apologizes for the error and has since ensured that the customer is repaid.

I contacted the Funding Circle to find out why it takes a long time to repay the money I invested and why it seems like I can’t keep my promise to provide more information as needed.

A spokesperson for the funding circle said:

“Approximately 80% of the entire portfolio has already been repaid this way, and Tim will continue to receive more repayments each month until all loans have been repaid.”

Fortunately, you have now received monthly repayments in your account since we were involved and so far there is no further problem.

You say the payment depends on the amount the borrower pays each month.

For example, the amount in October was £ 879, the amount in November was £ 387, and the amount in December was £ 402. It can take at least another year to receive all the money, but at least you will eventually get paid again.

You still do not accept the compensation raised to £ 200 because you are still angry with the treatment you received.

How does the funding circle work?

In funding circles, investors typically lend to a portfolio of hundreds of small businesses. Each of these businesses borrows for up to five years, but repays part of the loan at some interest each month.

Monthly repayments were usually reinvested in a new business when lending to retail investors began.

Investors can choose to turn off automatic reinvestment. At this point, monthly repayments from the borrower will be accumulated in your account (usually 3-5% of your monthly outstanding portfolio). Account owners can withdraw this.

Previously, investors could speed up this process by selling loans to other investors. However, the Funding Circle has always stated that it is clear that this option is not guaranteed.

In April 2020, due to participation in the government’s guaranteed loan system, we suspended the option to sell the loan portion, along with all loans / reinvestments for individual investors.

The rules of the scheme prohibit individual investors from participating, so allowing a loan to be sold alone cannot provide a balanced portfolio to the investor who buys it. Borrower repayments continue as usual, and the funding circle says it will consider lending to individual investors when the payback loan scheme ends in June.

EDF customers were hit by high bills as energy companies said they had to pay at once.

EDF customers were hit by high bills as energy companies said they had to pay at once.

Hit and Miss: This Week’s Naughty and Nice List

Every week, we look at companies that are below expectations or go one step further for our customers.

Miss: This week, reader Jess criticized her energy supplier, EDF..

She said:’I get about £ 60 a month for electricity every month. But last month I received an invoice saying that EDF has undercharged me since October last year and I have to pay £ 662.

“I’m asking you to pay the full amount, how is this the right procedure? Indeed, is it their responsibility to make sure that the correct amount is being charged?

“I offered to offer a meter reading, but said it was unacceptable, and when I live in a 300 studio apartment, it costs more than £ 100 a month for electricity, £ 55 a month. I’m estimating that I’ll have to pay an extra fee. Square feet. What can I do?’

Even with this money borrowed from EDF, it seemed unfair that the payment plan couldn’t read another meter or make a small payment. This is especially true when many people are financially difficult and struggling to pay. Invoice.

An EDF spokesperson said:

“Thank you for never being welcome to receive a shock invoice, and whether you can benefit from a smart meter that discusses your repayment plan with her and automatically records your actual energy usage. I will discuss it. “

Fortunately, I contacted and spoke to EDF and agreed to reduce the unpaid amount to £ 300 and to pay the full amount in January.

Fortunately, you don’t have to spend any more energy to sort this out, but don’t forget to do regular meter readings to avoid receiving shock invoices.

strike: In the happier news, another reader named Jess praised it. AppleService.

She states:

“I contacted Apple on Wednesday night and a great sales person called me to arrange a replacement. They arrived this morning to my surprise at this time of the year.

‘Admiration for Apple and its customer service. Happy customer. “

It sounds like good customer service has made the company an apple in your eyes.

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GRACE ON THE CASE: Still waiting for £ 7k to be repaid from the funding circle

https://www.dailymail.co.uk/money/experts/article-10335753/GRACE-CASE-waiting-9k-repaid-Funding-Circle.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 GRACE ON THE CASE: Still waiting for £ 7k to be repaid from the funding circle

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