I am Being Pressured in to a Payment Plan

dayusday26

I have a debt to Funding Circle from a company I owned which went into liquidation last year. It was guaranteed personally. We reached an agreement, prior to COVID-19 for me to repay them £18k in a lump sum payment.

I intended to raise this money via a loan against my property and the funds were agreed in principle just prior to the lockdown. COVID-19 meant that I couldn't finalise this loan and my wife and myself have now been furloughed until the end of May.

Funding Circle are now pressuring me to agree a repayment plan and requesting financial details (income and expenditure) from me so they can get me to agree to a repayment plan, with the threat of legal action if I don't comply. Obviously if I give them my current financial position, it would not be reflective of what it is, when we return to work. I still intend to repay them fully, when I can finalise the loan, but |I would rather finalise the loan when we are both working again.

Any advice would be appreciated.

lopsyfa

It is not unreasonable for funding circle to expect you to start paying the loan back while there is no set date for the lump sum. I will advise complying and agreeing to an affordable payment plan based on your furlough payments. This can then be stopped once you are make the lump sum payment.