Rebuildingsociety clarifies enforcement processes
REBUILDINGSOCIETY’S enforcement head has said that criminal charges against borrowers do not mean that a loan is necessarily less recoverable, amid rumours of a fresh case.
Two directors of a company with a loan from the peer-to-peer platform have allegedly had criminal charges levelled against them.
Michael Lawther told Peer2Peer Finance News that he was not prepared to discuss individual cases, but said that as a general part of the recovery process, Rebuildingsociety would alert external authorities if there were any suspicion of fraud.
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“We work with recovery solicitors that are experts in debt recovery,” he said. “They’re used to working with criminal investigators and the Serious Fraud Office (SFO).
“We’d work together to see if there’s any suspicious behaviour and then pass our concerns on to the police or SFO.”
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Lawther said that it was not necessarily easier or more difficult to recover a defaulted loan in such cases.
“It depends on the value and type of security,” he said. “There are two main areas we focus on – pursuing businesses and individuals’ personal liability.
“Sometimes, recovery from the business is completely unaffected [in the case of criminal charges].”