Funding Circle Charge

rr3891

Hi

My husband and I took a funding circle loan out for our business, which we now cannot keep up with repayments due to an ongoing litigation case with one of our customers.

We want to lower our monthly repayment to FC, but they want to out a charge on our house.

Has anyone heard of FC making customers sell their houses to repay the loan?

Any help would be appreciated as the solicitors we have spoken to have given us very different advice.

Brock_and_Roll

OP, I presume it was an unsecured loan? Personal loan or to Limited company with personal guarantees?

In a nutshell, you are proposing to default on the terms of your loan. IF they do not agree to your proposed new terms i.e. lower payments, they can "call" the default, terminate the loan agreement and take you to court for a CCJ.

Once they have the CCJ, they can apply to get a charging order against the house - which would have to be paid when selling the property.

They could apply to force an immediate sale, but this requires extensive legal action so some lenders are happy just to wait.

Obviously the decision whether to negotiate or go for a charging order can depend on whether there are any assets worth going for - is there much equity in the house?

In simplistic terms, as this is personal loan, albeit for a business, there is no reason why a lender should not look to any other the borrowers asset.

https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/charging-orders/