What are the problems lenders face when recovering money?
The five most common problems encountered are: • Insufficient loan documentation to prove that a debt exists, or when and under what circumstances it is to be repaid and what interest and other charges should be paid. • Insufficient description on security documentation to be able to identify and collect assets covered under the security. • Security documentation not being properly executed or registered and therefore unenforceable against administrators and liquidators. • The value of assets secured being significantly less than the amount of the loan – leaving the lender with a shortfall. • Proper default procedures not being followed before the appointment of the controller thereby invalidating the appointment.
