A procedural hearing held in Central London earlier today has revealed a complicated web which looks set to be unravelled at a 5-day-trial, expected to begin on October 31st.
In May 2022 the mouseinthecourt exclusively reported on the failed P2P company FundingSecure facing a new threat over an alleged ‘secret commission’ payment.
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Reporting by Daniel Cloake.
We can exclusively report that the court was told at least four other borrowers have alleged secret commission claims against the firm, which collapsed in 2019.
We were told the claims have yet to be formally filed at court however all five were said to have been arranged through Birmingham based mortgage broker Premier Private Finance LLP. The ‘LLP Designated Member’ of Premier is Mr Moksud Alom, 48.
Making an application that Premier be formally joined to proceedings Mr Simon Popplewell, the barrister representing FundingSecure explained that is was their case that the broker should have notified the borrowers of any commission payments and therefore they would be liable for any damages in the event the mortgage contract is rescinded.
It was “important Premier realises they are on the hook for the claim and any losses… It is important they are a party so they are bound by any findings of fact” said Mr Popplewell. This submission was summed up by His Honour Judge Gerald as Premier needing to “wake up and smell the coffee and realise their neck might be in the noose“.
“My client is concerned Premier is not being truthful” Mr Popplewell explained, adding that it was the broker himself who had informed the borrowers about the secret commission in the first place. As a reason for this surprising revelation the court was read part of a letter which apparently said Mr Alom was “deeply unhappy about how his clients were treated by FundingSecure“.
Addressing a claim that documentation had been disposed of Mr Popplewell said he did not believe that all discussions had taken place on the phone adding “you don’t throw your lending documentation during the term of the loan …that is a highly suspicious assertion“.
Explaining that joinder of Premier to proceedings would “raise difficulties“, Thomas Mallon, the barrister representing Premier, said there was an “existing business relationship between the two companies” and a “relationship between two former directors“. Further details were not given to the court. It is understood that Mr Alom had previously been a borrower on the FundingSecure platform.
We were told that if Premier were to be joined to the claim this would involve delaying the trial date to at least March of next year. Mr George Mallet, the barrister representing the borrowers said “my clients make it clear that the one thing they really don’t want to happen is to lose the date of the trial“. As school workers, unfamiliar with the legal claims “my clients are finding this process pretty alien … and this [application] is heightening their anxiety“.
As for knowledge of the secret commission Mr Mallet commented “by its very nature it’s secret so my clients wouldn’t have been made aware of it“.
Declining to allow Premier to be added as a party to the claim, HHJ Gerald said that “whilst the factual issue relating to the secret commission is simple and straightforward, the issue between the claimant and the broker is completely different and unrelated to the issue with the defendants… Joinder could raise complexity which could divert attention [from the main issues]” he ruled.
Replying to concerns about a separate trial for liability reaching a different conclusion to this first trial the judge said “if one stands back and looks at the matter, it is inherently unlikely, following any factual finding in the first trial, that there would be any material change in testimony in any second trial.“
“Taking all of those factors into account I am not prepared to adjourn the trial or give permission to join Premier to these proceedings“.
The 5-day-trial is expected to begin on October 31st 2022.
Mr Alom, of Premier Private Finance LLP has been approached for comment.
Case Details
Case Number: H10CL529
Fundingsecure Limited in administration -v- Fahmida Anwar and Ruxana Begum
Before His Honour Judge Gerald
Court 54, County Court at Central London
10.30am 12/10/2022
Mouse in the Court 
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