A loan I have invested in is labelled “enforcement”. What does this mean?

This means that enforcement action (legal or repossession proceedings) has started to recover the outstanding debt owed by the borrower. It is the final course of action we will take if a borrower has continually failed to make interest payments or repay the principal loan amount.

Income is not paid to investors during the enforcement period, but it will continue to accrue. When the enforcement process has completed, we will apply the proceeds of enforcement in the order set out in your receivables purchase agreement, a copy of which you can find in your online account. The process may take six months or longer to complete.

If, after realising the proceeds of the sale of the property, there remains a shortfall balance, we will seek to recover this from a personal guarantor (if applicable) or pursue the borrower or the borrower’s directors through our loan servicing team. If this occurs, we will regularly update you with our progress.