Terms & Conditions
Money Mog Standard Account Terms
- Our Agreement
- The Money Mog Service is provided to you by The House Crowd Limited (“The House Crowd”, “we”, “us”, “our”) which is authorised and regulated by the Financial Conduct Authority with firm reference number 725648.
- These P2P terms and conditions (“P2P Terms”) set out the terms on which we will provide the Money Mog service and constitute our agreement with you as a lender (“P2P Lender”).
- These P2P Terms are in addition to the Terms relating to your use of our Site, and to the extent there is a conflict between these P2P Terms and the Terms, these P2P Terms shall take precedence over the Terms.
- If you wish to use the Money Mog Service as a P2P Lender, you must comply with these P2P Terms.
- Capitalised terms shall bear the meaning in the glossary at the end. Capitalised terms that appear here that are not in the glossary will have the meaning given to them in the Terms.
- How to become a P2P Lender
- You can use your account to lend money through the Money Mog Service for the first time or through an existing account with us. The minimum investment and account balance is £50. If your account drops below this level, we may, at our discretion, close the account and pay the proceeds to you. If you have not provided us with a valid Nominated Account into which such proceeds should be paid and we are unable to contact you within three months, we may pay such balances to a registered charity of our choice (provided your account has been dormant for at least 6 years). We may increase the minimum account balance requirement at any time upon providing you with one month’s prior written notice.
- If we accept your application, we will provide you with your account details and you can select whether you want a standard account or an Innovative Finance ISA Account. Please refer to the Money Mog ISA terms if that is your selection.
- You must provide us with the account details of the bank account from which you intend to make and receive payments (your Nominated Bank Account). Your Nominated Bank Account must be in the same name as the person who is registered with us and must be held with a bank or building society (“credit institution”) that is acceptable to us. We may accept or reject applications to create an account at our absolute discretion.
- If you want to add funds to your P2P Portfolio, sell all or part of your P2P Portfolio or request us to move money between your account and your Nominated Bank Account, you can do this through your account, subject to certain restrictions as set out in these P2P Terms.
- You may designate any part of the cash or loan capital on your account as being held in the account on behalf a person under the age of 18. Any cash or loan capital designated in that way remains your property and does not become the property of the person it is held for.
- Our P2P Services
- The Money Mog Service is a service which enables you to view the breakdown of your cash and investments held on the Site. The Site and these P2P Terms describe the basis on which we may add and remove P2P Loans to and from your P2P Portfolio from time to time, and by accepting these P2P Terms, you authorise us to transact in P2P Loans on that basis as your agent.
- Your money will be used to fund individual P2P Loans and/or to fund loans to property developers and property owners, in accordance with our underwriting processes, which will be transferred to you and held within your P2P Money Mog Portfolio. We take steps to achieve diversification as set out in these Terms.
- As part of the Money Mog Service, we shall manage your P2P Loans on a discretionary basis including re-allocating your loans and therefore diversifying your portfolio as far as is practicable and as we deem appropriate in order to give you exposure to a range of Borrowers as new opportunities arise.
- Topping up your account
- You will be able to add funds to your Money Mog Portfolio by electronic transfer or standing order when you set up your account. The minimum transfer amount is £50. We reserve the right to refuse to accept any particular funding transaction or to disable any particular funding method without notice in our sole and absolute discretion.
- Interest Payments
- You may choose to be paid your interest or automatically re-invest. If you choose the latter, we will automatically re-invest interest proceeds into new P2P Loans, that will be held within your Money Mog Portfolio in the same way as new funds added pursuant to section 4 (Topping up your account) above.
- If your preference is to receive interest you it will be paid automatically into your Nominated Bank Account on a bi-annual basis each 30th October and 30th April or the next working day if this falls on a weekend or a bank holiday. The first interest payments will be made on the payment date following your initial investment. We make these interest payments in advance and on the basis that there is no bad debt. If bad debt accrues in any interim period, we reserve the right to adjust the interest payments to cover the bad debt.
- Selling P2P Loans
- As far as is practicable, we will diversify your Money Mog Portfolio on your behalf across P2P Loans with different maturity dates.
- If, at any time, you wish to sell some or all of your Money Mog Portfolio, you may request to do so through your account. You will not be able to sell individual P2P Loans, but will be able to request to sell all or a specified proportion of all P2P Loans within your Money Mog Portfolio. If your P2P Loan is sold, you will receive the capital repayment, and any interest due will be paid on the next bi-annual interest payment date.
- If you request to sell all or a proportion of your Money Mog Portfolio, we will attempt to realise your Money Mog Portfolio by finding replacement P2P Lenders to transfer your P2P Loans to. We cannot guarantee that it will be possible to find a buyer for your P2P Loans, which will depend on market conditions, so you may have to wait until some or all of your P2P Loans expire and the Borrower repays you. The minimum term is 12 months from the date when your first invest.
- We may, in our absolute discretion, grant a request by you to terminate your Auto Invest Loan within the minimum 12-month period, and if we do so, you shall not be entitled to any interest that has accrued at the date of such termination. If we have paid interest to you in advance, you must repay all such interest to us at the point of termination.
- Should you not make an investment of at least £600 (e.g. 12 x £50 pm) over the initial 12 month period, you shall not be entitled to any interest that has accrued at the date of such termination. If we have paid interest to you in advance, we may recoup such interest or require you to repay all such interest to us at the point of termination.
- Requests from multiple P2P Lender to sell interests in Money Mog Portfolios containing P2P Loans relating to the same Borrower will be processed in the order we receive the requests.
- In order to protect the interests of new P2P Lenders, we will not sell any component of your Money Mog Portfolio which is in default.
- The sale price for a portion of a P2P Loan will be equal to the outstanding capital due on the P2P Loan at the time of sale. Interest will only be payable on the designated bi-annual dates and interest paid shall be divided proportionately between you and the purchaser of your P2P Loan part based on the number of days the P2P Loan is held by each party.
- Using the Money Mog Service through an Intermediary
- We do not provide any investment advice, tax advice or personal recommendations in respect of your Money Mog Portfolio or in relation to your decision to invest through the Money Mog Service. We shall not be liable for any losses you suffer or incur as a result of acting or deciding to act on the advice or recommendation of any third party (including your Intermediary) in relation to the Money Mog Service.
- You acknowledge that it is your responsibility (or the responsibility of your Intermediary) to keep your financial circumstances, objectives and appetite for risk under review, and to assess whether investing in P2P Loans is suitable for your needs.
- Sub-sections 2 to 6 of this section 7 (Using the Money Mog Service through an Intermediary) apply if you are introduced to the Money Mog Service by an Intermediary who operates your account and deals with us on your behalf as your agent.
- We have no responsibility for monitoring any on-going service which may be provided to you by your Intermediary.
- We will treat your Intermediary as your agent for the purposes of providing the Money Mog Service and we will act on any instructions from your Intermediary as if they were instructions directly from you pursuant to these P2P Terms.
- If your Intermediary’s ongoing service comes to an end (for example, because you choose to cancel the service, or your Intermediary chooses to terminate its relationship with you or goes out of business) we will continue to hold the cash and investments in your account for your benefit, but you will not be able to control your account unless you notify us about the change in circumstances and prove your identity. We shall be entitled to continue to rely on any authority you have provided us to pay charges that are outstanding and due to the Intermediary.
- If the relationship between you and your Intermediary comes to an end, you may appoint a new Intermediary to ensure that investing through the Money Mog Service remains suitable for you. The new Intermediary will need to register with us in order to have authority to operate your account.
- We may contact and deal directly with you notwithstanding the fact you have appointed an Intermediary, for example and without limitation, where we know or suspect that your relationship with your Intermediary has come to an end.
- Security and payments following default
- We will carry out credit assessments on all Borrowers before approving their P2P Loan application. The Borrower will provide security in respect of each loan by granting a legal charge over property of sufficient value as is necessary to meet our lending criteria. We may also seek personal or corporate guarantees, where appropriate. The Security will be held on trust by the Security Trustee for the benefit of the Lenders and for our own benefit.
- If a Borrower defaults on a P2P Loan and we are unable to recover the full amounts due from the Borrower in respect of interest and capital, the proceeds of recovery, net of any necessary third-party costs associated with such recovery, the Security Trustee shall apply the proceeds in the following order:
- first, for the benefit of P2P Lenders in paying any capital due under the P2P Agreements;
- second, for the benefit of the P2P Lenders in paying any interest due under the P2P Agreements; and
- third, for the benefit of The House Crowd Limited or House Crowd Finance Limited in respect of any fees owed.
- Portfolio Management
- By opening your account and indicating your acceptance to these P2P Terms, you grant us full authority to act as your agent in entering into Contracts of Transfer, on a periodic basis, in order to enter into P2P Agreements and build your Money Mog Portfolio. You also grant us authority to manage the P2P Loans in your Money Mog Portfolio and without prior reference to you, provided that our management activities are in accordance with these P2P Terms.
- In entering into a Contract of Transfer on your behalf, we may at our discretion vary the original interest rates charged to each Borrower, in such a way that the average interest rate across all Borrowers determines the rate we quote on the Site from time to time. This means that we may enter into a P2P Agreement with an interest rate below the headline rate, but where we do so, we shall try to match it with a corresponding P2P Agreement that balances out the headline rate. We will only do this where we believe it desirable to increase the diversity of your Money Mog Portfolio and where lower rates can be complimented with and offset by higher rates.
- The Applicable Target Rate
The target rate available to you is as published on our site at the time you invest. Available rates may vary from time to time. If you invest additional funds at different times, the rates published at the time of such additional investments may apply to the additional funds.
- Your money
- You will be required to transfer your loan commitments as set out in section 4 (topping up your account) into your account before you can enter into any P2P Loan.
- We will claim and account for all repayments, interest and other payments or entitlements received and due to you and credit them to your account. We will not mix money in your account or the Security Trustee’s account with our own money, other than fees and charges that are due to us out of your Money Mog Portfolio. The name of your account and the Security Trustee’s account shall make it clear that they are held for the benefit of our clients and that the proceeds of the account should not be paid out to our general creditors in the event of our insolvency.
- Any fees, charges or taxes we are legally required to deduct will be deducted before paying the net proceeds of any amounts due to you into your Nominated Bank Account. Where we make a tax deduction (or any payment required in connection with that tax deduction) which is required under the relevant tax law (including withholding of the basic rate of income tax), we will provide you with a statement (or other reasonably satisfactory evidence) that such tax deduction has been made or an appropriate payment has been made to the relevant tax authority.
- After termination of your account, we will repay all sums due to you into your Nominated Bank Account. If we are unable to trace you to make such payment within 6 years, having made reasonable attempts to do so, we may pay your money to a registered charity of our choosing.
- If you wish to change your Nominated Bank Account, you may only do so to another account in your name with a bank or building society based in the UK or in another country in our absolute discretion.
- Terminating your account
- You may give us not less than the Minimum Written Notice Period after the minimum 12-month investment to terminate your account. Such notice will not entitle you to withdraw from the P2P Loans to which you are committed unless we are able to sell your Money Mog Portfolio in accordance section 6 (Selling P2P Loans) on your behalf. On receiving a notice to withdraw, we may pay out all outstanding balances at any time within thirty (30) calendar days of receiving such notice, and interest will stop accruing and shall no longer be payable from the date of such repayment.
- We may, at any time and at our discretion, prevent you from committing funds to new P2P Loans or additional funds to existing P2P Loans.
- We may, where we believe it to be desirable for legal or regulatory reasons or upon giving you Minimum Written Notice Period for any other objective reason, attempt to wind up your existing Money Mog Portfolio by selling your P2P Loan commitments to alternative Lenders in accordance with section 6 (Selling P2P Loans).
- We may settle any P2P Loan commitment at any time after notice is provided under sub-sections 1 and 3 above, and interest shall stop accruing on the date such repayment is made.
- After all outstanding transactions have been completed we will provide you with a closing statement detailing the interest paid on your P2P Loans in the current tax or calendar year. Our responsibility for managing your account and your Money Mog Portfolio will then cease entirely.
- Termination will not affect accrued rights or any contractual provision intended to survive termination.
- Complaints and Compensation
- We endeavour to deliver a first-class service to our clients, but we recognise that there may be occasions when we fail to meet your expectations. If you have a complaint, then you can contact us through your account or by email at email@example.com
- If we are not able to resolve the complaint to your satisfaction, you may have rights to refer the complaint to the Financial Ombudsman Service. Further details are available from the Financial Ombudsman Service, at www.financial-ombudsman.org.uk. You may request a copy of our complaints-handling procedure at any time.
- Peer-to-peer lending is not covered by the Financial Services Compensation Scheme. However, if the solicitor or credit institution holding your money in the Money Mog Client Account becomes insolvent, you may be able to claim compensation from the Financial Services Compensation Scheme. In such an event, we will inform you of the identity of the credit institution to enable you to pursue such claim. The maximum amount of compensation in respect of a UK credit institution is £85,000. Further details are available from the Financial Services Compensation Scheme, whose address is 7th Floor, Lloyds Chambers, Portsoken Street, London, E1 8BN and telephone contact details are 0800 678 1100 or email firstname.lastname@example.org or www.fscs.org.uk.
- Fees and Charges
Our fees are paid by Borrowers and we do not currently charge you for your use of the Money Mog Service. However, we may introduce charges for exceptional transactions, provided that no such charges will be introduced retrospectively in relation to Money Mog Portfolios that were created before such charges were notified to you.
- Any of our functions under these P2P Terms may be delegated to an associate or competent (and if relevant, appropriately regulated) third party of our choosing to perform such functions. We will use reasonable skill and care in our selection, monitoring and use of agents.
- Collections may be outsourced by us or the Security Trustee to any third party.
- Conflicts of interest
- If any conflicts arise which we could not effectively manage, we may not be in a position to provide our services to you.
- It is possible that the Borrowers or other counterparties in a transaction or P2P Loan will be entities in which we, our associates or their clients have financial interests, or to which we or our associates provide services. Accordingly, we or any member of our group (including any associate) may be entitled to gains, profits or fees from or in relation to such companies and entities.
- Subject to the terms of this section 18 (Conflicts of interest) neither we nor any of our associates shall be required to account to you for any profit, commission or remuneration made or received from or by reason of such transactions.
- Variation and transfer
- We may, at any time, change these P2P Terms by giving you not less than the Minimum Written Notice Period, and such changes will take effect on the date specified in the written notice. For the avoidance of doubt, these changes may impact our fees and charges or the level of service provided. Any amendment that adversely affects you will not apply to sums already lent out.
- We may amend these terms if we believe it necessary in order to respond proportionally to changes in law and regulations.
- We may also amend these P2P Terms to reflect changes to our systems, administrative processes and procedures, market practice or client requirements and to reflect other legitimate cost increases (or reductions) associated with providing the Money Mog Service.
- A variation to the Target Rate shall not constitute an amendment to these terms. Changes to the Target Rate will be published on the Site. A change in the Target Rate will not affect the rate applicable to your existing P2P Loans, but is likely to affect the rate you receive on re-allocation or re-investment.
- You agree and acknowledge that we shall take on no liabilities, obligations or rights under any P2P Loan as a result of our authority to act on your behalf and you agree that you will continue to be solely liable for and responsible for the rights and obligations under any P2P Loan agreement and any Contract of Transfer.
- We shall not be obliged to pay on to your P2P Loan repayments, interest or other sums due to you from Borrowers or other third parties unless we have received them.
- We do not provide tax or investment advice. If you are unsure about the tax or investment implications of the P2P Money Mog Service, you should seek advice from an appropriately-qualified adviser.
- We shall not be responsible for any losses to the extent arising from any information provided by you being untrue, inaccurate or incomplete.
- We shall not be liable for any consequential, indirect, special, incidental, punitive or exemplary loss, liability or cost which you may suffer or incur arising out of our acts or omissions regardless of how that loss, liability or cost is caused and regardless of whether it was foreseeable or not.
- We will act in good faith and with due diligence in managing your P2P Loans in accordance with these P2P Terms. Subject to sub-section 5 of this section 20 (Liability), we accept responsibility for loss to you only to the extent that such loss is due to our negligence, wilful default or fraud.
- Nothing in these P2P Terms shall exclude or restrict any liability we have to you under any applicable law or regulation.
- These P2P Terms shall be governed by, and construed in accordance with, the laws of England and Wales, and the appropriate Court of Law in England is to have non-exclusive jurisdiction in relation to all matters, claims and disputes arising out of or in connection with these P2P Terms. No other documentation or literature can be used as part of the P2P Terms.
- It is not intended that any term contained in these P2P Terms shall be enforceable, whether by virtue of Contracts (Rights of Third Parties) Act 1999, common law or otherwise, by any person who is not a party to these P2P Terms save that third parties referred to in it, including the Security Trustee and Intermediaries, may rely on any authority granted to them under these P2P Terms, including the ability to accept our instructions to carry out functions on your behalf in accordance with these P2P Terms. Any group company of ours shall be entitled to enforce these P2P Terms on our behalf.
- If any part of the wording of these P2P Terms shall become or is declared to be illegal, invalid or unenforceable for any reason, such part or wording will be deleted and shall be divisible from the rest of these P2P Terms, which will continue in force.
- Our failure to exercise or delay in exercising a right or remedy provided by these P2P Terms or by law does not constitute a waiver of other rights or remedies.
- The P2P Terms are supplied in English, and we will only be required to communicate in English during the course of our relationship with you.
- We may send any communications to you through the account and/or at the email address which you provide to us in when opening your account (or to any updated email address that you may notify to us in writing from time to time). Any original documents will be sent to the last postal address you have notified to us. It is your responsibility to ensure that the contact details we hold for you are accurate and up-to-date contact. You must notify us of any changes to your email or postal address.
- You may communicate with us by email at email@example.com If we require information to be sent to us by post, this should be sent to: Money Mog c/o The House Crowd 91-95 Hale Road Hale Cheshire WA15 9HW.
- Notice sent by first class post to such address is deemed to have arrived on the second business day after posting. Notice sent by email or hand delivered is deemed to be delivered immediately (or on the next business day if sent after 5pm on a business day or on a non-business day). Telephone calls may be recorded or monitored for our mutual protection.
In these P2P Terms, unless the context otherwise requires:
“account” means the secure online account we open for each P2P Lender, through which P2P Lenders can view details of each of their Money Mog Portfolios;
“Money Mog Portfolio” means the loan portfolio you create through The House Crowd pursuant to these P2P Terms, comprising uninvested cash and the benefit of each P2P Loan we have entered into on your behalf and subject to any fees, charges or taxes due on the portfolio;
“Money Mog Service” means the service provided by us to you in accordance with these P2P Terms;
“Borrower” means the borrower under a P2P Agreement that we have entered into as your agent pursuant to a Contract of Transfer;
“Borrower Fee” means the fee due from the Borrower to us;
“Client Account” means a client account held by us on trust for P2P Lenders in accordance with FCA rules;
“Contract of Transfer” means the contract we enter into with each Borrower as your agent, effecting the transfer of a loan to you and creating a P2P Agreement between you and the Borrower, which is available upon request through the account;
“FCA” means the Financial Conduct Authority, which regulates firms operating electronic systems in relation to lending;
“Intermediary” means any adviser or other professional intermediary that may have introduced or directed a P2P Lender to the Money Mog Service;
“Lender” means a lender on whose behalf we enter into a P2P Agreement with a Borrower or, as the context dictates, a person who has applied to become such a lender;
Money Mog Portfolio “Minimum Written Notice Period“ means 30 calendar days’ notice;
“Nominated Bank Account” means the bank account you nominate to receive the proceeds of your Money Mog Portfolio;
“P2P Lender” means the Lenders;
“P2P Loan” means a loan to a Borrower which is transferred to P2P Lenders, or a development loan;
“P2P Agreement” means the documentation constituting the agreement in respect of a P2P Loan between a P2P Lender and a Borrower;
“P2P Proceeds” means the proportion of the proceeds of recovery from a Borrower in default, net of third party fees and charges, that corresponds to the outstanding loan commitments of the P2P Lenders as against the total amount of loan commitments arranged through The House Crowd in respect of that Borrower;
“Security” means the security, such as a legal mortgage and/or guarantee(s) provided by the Borrower in respect of any P2P Loan, and available upon request through the account;
“Security Trustee” means the person we appoint to take security over the assets of Borrowers under secured P2P Agreements, as may be varied from time to time and which currently means the House Crowd (Security Agent) Limited;
“Site” means www.moneymog.com
“Tax Year” means a year starting on 6 April and ending on the following 5 April