There is a High Court action challenging the ability for Azzurro Associates to buy Funding Circle debt around the terms and phrases used by Funding Circle in the loan agreements. As you will see from the article, at an interim hearing a judge has stated that there was a “more than arguable case” that assignments of rights in the case were not, “in effect, legal assignments of the underlying debts”, adding that Funding Circle’s definition of “lender” may have the “effect of limiting the ambit of the guarantee” to a “very narrow class of creditors” that would not include Azzurro. The judge also stated that the two guarantors had a “real prospect of success”.
It may take some time for the High Court to hear this; let us hope it does not get settled under a confidentiality agreement, although even if it does, it may embolden other guarantors to take up the mantle.
We will keep you posted on developments and you can find out more HERE