We paid Funding Circle every month for over two years. Never missed a payment. When our family business failed, they claimed we owed more than we originally borrowed. We asked them to explain the numbers. They wouldn't. We asked again. They sent solicitors. The solicitors threatened to take our home.
We were a family business in the truest sense of the word. My wife and I started the business 8 years ago and our son has worked for us for the last five years. At our peak we had 12 staff. We lost everything - the business, our livelihood, our savings. It made no difference to Funding Circle. It feels like we are a number in a spreadsheet and our home is an asset on a balance sheet.
We have asked every question in writing. We have filed complaints with the Financial Ombudsman and the Information Commissioner. We have met every deadline, provided every document, and cooperated at every stage. The response has been the same every time: escalation.
There is very little information out there about what happens when a Funding Circle loan goes wrong. We have decided to share our story. If we knew then what we know now, we would never have taken out a loan with Funding Circle.
What this site covers
This is a documented account of our experience as Funding Circle borrowers and personal guarantors. Every factual claim on this site is evidenced and can be backed up.
The loan - what we signed, what it really meant, and the personal guarantee that put our home at risk.
The numbers - how Funding Circle calculated what we owe after default, and why the figures don't add up.
How they treated us - the settlement process, the complaint they framed without asking us, and the vulnerability they acknowledged and ignored.
The call - the recorded phone call where they threatened bankruptcy and demanded a charge on our home for one pound a month.
The sham evaluation - the day they demanded we increase our offer before evaluating it, then rejected it 96 minutes later.
Head of Litigation - the moment Funding Circle's most senior lawyer took over, dismissed our vulnerability, and proposed a phone call instead of written answers.
Where we are now - the pattern of escalation from recoveries to complaints to litigation to external solicitors, and what it's like to live under the threat of losing your home.
Who this is for
If you're a business owner considering a Funding Circle loan, read this first. If you've already signed a personal guarantee and things are going wrong, you're not alone. If you're a journalist, regulator, or anyone interested in how Funding Circle treats borrowers when loans default, this is a documented case study.
This story is evolving and is being updated regularly. We hope it helps others.
How it started →
