Funding Circle response to “Wish I had never invested – feels like a scam :(“
Hi Tori,
Thank you for leaving a review.
We are sorry you have not enjoyed your investment through Funding Circle.
While we are not able to comment on your personal account here, we thought it important to clarify a couple of things.
Back in December we did indeed make some changes to our secondary market. Previously, loan parts were sold in a que. Once an investor reached the top of the que, all of their loan parts would sell and the next investor would move up the que.
However, as you may have experienced, selling times had increased in 2019 and we brought in the changes on December 2nd. The new selling tool cycles through all investors wishing to sell loan parts as many times as possible within a 120 day period. In each cycle, every investor will sell a small portion of their portfolio or at least one loan part. The cycle will run continuously through all investors currently wishing to sell.
This means every investor selling loan parts will begin to receive some funds back faster and more regularly. The fees you are referring to, is the transfer payment. The 1.25% transfer payment is a fixed amount applied automatically to all loan part sales. It is calculated on the outstanding principal of the loan part at the time of sale. For example, a £20 loan part is sold for £19.75 (and, as with the current tool, the selling investor would also receive any interest owed on that loan part since the last monthly repayment up to the point of sale).
100% of the transfer payment goes to the investor who is buying the loan part. This brings us in line with other lending platforms, although in our case, Funding Circle does not receive any fees from any loan part sale.
We apologise if you have been having trouble getting through to us. Please send an email to contactus@fundingcircle.com and someone will reach out to you if you would like to discuss these changes or anything else to do with your account.
Thank you again.
The Funding Circle team.
