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What happens if I'm late or think I will be late paying a monthly instalment?

If at any time you believe that you may not be able to make one or more repayments, please contact us immediately. If you miss a payment or only partially pay the amount due, we (ourselves or through an agent acting on our behalf) will contact you and ask you to explain why and will attempt to recollect the payment. If our reattempt to collect the funds fails, your account will be treated as an overdue account, and we will continue to attempt to collect the funds. We may refer the missed payment to a debt collections agency (the "Collections Agency"), who will attempt to collect the money on the investors' behalf.

If payment has still not been made 7 days from the date payment was due, Funding Circle may charge you administration fees up to 15% of the missed payment amount which would be in addition to the loan sums due. This fee will be payable immediately.

Save in exceptional circumstances (such circumstances being deemed exceptional by Funding Circle in its absolute discretion from time to time), if you miss, fail to pay or only partially pay, three or more consecutive monthly instalments or four out of six consecutive monthly instalments, or if you otherwise fail to comply with any term or condition of the Loan Conditions, the loan will be placed into default and we will issue you with a default notice and termination notice and will pursue you for the total loan amount outstanding. If your loan is placed into default, or is more than 90 days late, we may charge a collection charge of up to 15% of the outstanding loan amount at the time of default. This charge will be payable immediately. We may also charge other fees to cover tracing charges, field agents' costs, litigation costs, expenses and other such third party fees incurred by Funding Circle in the course of protecting the interests of the investors who lent to the business.

We will try to give you 18 days' notice before filing a default on your credit reference file although we may not always be able to do so. Please see our privacy policy for more details on how we disclose information about you.

If we and/or the Collections Agency is still unable to collect the debt, investors will assign their debt to Funding Circle Trustee Limited (FCTL) or Funding Circle Property Finance Limited (FCPFL) which may take such steps as it considers necessary or desirable to recover the amount owed including without limitation to sell the assigned debt to a debt purchaser or otherwise to pursue you (and any relevant guarantor, as the case may be) for the outstanding amounts through third party debt collection agencies and/or the courts. If such further action is necessary, it is likely that significant costs will be incurred which will be passed on to you as the defaulting borrower.

Notwithstanding the above, time is of the essence with regard to payment of each monthly repayment. Accordingly, Funding Circle may, if it considers it necessary or desirable, terminate the loan and demand immediate payment of the full amount of the loan (with all outstanding accrued interest) plus costs if any repayment is missed or only partially repaid (and such missed repayment is not remedied within 10 business days), or if you (or any guarantor of the loan) enters or is deemed to be likely to enter any formal or informal insolvency process.

In circumstances where the relevant loan or loans are large asset finance loans, FCAF may (or its authorised representatives may), without notice and at your expense, retake possession of the business asset or assets and for this purpose may enter any property, site or premises at which the assets are located as detailed under the underlying conditional sale or lease agreement.

 

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