Fundingsecure.com Review

Based on looking at the website, FundingSecure.com is a platform that was involved in peer-to-peer lending, connecting borrowers with lenders for asset-backed loans. However, it’s crucial to note that the website’s current state indicates it is under administration since October 2019, with ongoing legal proceedings related to significant financial claims and frozen accounts. This signals severe operational and financial instability, making it an entirely unsuitable and risky platform for any financial engagement.

Here’s an overall review summary:

• Operational Status: Currently under administration since October 2019.
• Financial Stability: Highly unstable, with frozen e-wallet accounts and ongoing legal disputes over substantial sums.
• Risk Level: Extremely high. Investors’ capital is at severe risk, with funds tied up in legal battles and payments suspended.
• Ethical Consideration Islam: The core business model of peer-to-peer lending on FundingSecure.com, which prominently features interest rates up to 16% p.a., directly involves Riba interest. Riba is explicitly forbidden in Islam, making any engagement with this platform fundamentally impermissible for Muslims. The website’s focus on lending and borrowing at interest, regardless of asset backing, falls squarely within the prohibited financial practices.
• Transparency: While the website provides detailed updates on the administration process and legal claims, this transparency arises from severe problems, not healthy operations.
• Customer Support: Limited to urgent queries via email due to the administration.

The detailed explanations on the homepage regarding the administration, legal claims like the “Quistclose Trust” claim by JC Starr Holdings Ltd for £500,000, and the freezing of investor funds paint a clear picture of a failed and highly problematic venture.

Investors are advised to seek legal counsel and may even need to participate in court proceedings to potentially recover funds.

The site explicitly states, “your capital is at risk if a loan defaults” and “your capital remains at risk.” Given the administration and the nature of the financial distress, this risk has materialized into a severe loss for many.

From an Islamic perspective, the involvement of Riba in its very foundation makes it a forbidden avenue for investment or borrowing, regardless of its operational status.

The inherent instability and explicit use of interest make it a platform to avoid entirely.

Given that FundingSecure.com’s core business model of peer-to-peer lending with high interest rates is prohibited in Islam due to the involvement of Riba interest, and the platform is currently under administration with significant financial turmoil, engaging with it is neither ethically permissible nor financially prudent.

Instead, let’s explore ethical, Islamically compliant alternatives for financial endeavors, focusing on real products and services that align with Islamic principles of fair trade, risk-sharing, and asset-backed transactions without interest.

These alternatives often involve equity-based investments, ethical banking, and sharia-compliant crowdfunding.

Best Alternatives for Ethical Financial Engagement:

• Amanah Ventures

  • Key Features: Focuses on sharia-compliant venture capital and private equity investments. Offers opportunities to invest in ethical startups and growth-stage companies.
  • Average Price: Investment minimums vary by opportunity, typically higher entry points for private equity.
  • Pros: Fully Sharia-compliant, invests in real businesses, potential for significant returns based on profit-sharing, diversified portfolio opportunities.
  • Cons: Higher risk due to venture capital nature, illiquid investments, not suitable for small investors.

• Wahed Invest

  • Key Features: A robo-advisor offering diversified, Sharia-compliant investment portfolios. Invests in Sukuk Islamic bonds, ethical equities, and gold.
  • Average Price: Minimum investment often starts from $100.
  • Pros: Low minimums, diversified portfolios, automated investing, fully Sharia-compliant, accessible for everyday investors.
  • Cons: Limited customization options, performance tied to market fluctuations, management fees apply.

• Zoya App

  • Key Features: A mobile application for screening stocks for Sharia compliance. Helps investors identify halal investment opportunities in the public market.
  • Average Price: Freemium model. basic features are free, premium features require a subscription e.g., $9.99/month or $99.99/year.
  • Pros: Empowers individual investors to make informed Sharia-compliant decisions, comprehensive screening tools, user-friendly interface.
  • Cons: Requires active participation in stock selection, does not manage investments directly, subscription cost for full features.

• Guidance Residential

  • Key Features: Offers Sharia-compliant home financing based on Murabaha cost-plus financing or Musharaka co-ownership models, avoiding interest.
  • Average Price: Varies based on property value and financing structure.
  • Pros: Provides an essential need housing without interest, transparent financing structures, widely recognized in the US.
  • Cons: Requires extensive documentation, processing times can be longer than conventional mortgages, limited to specific states.

• Islamic Relief USA – Zakat/Sadaqah Charity

  • Key Features: While not an investment platform, Islamic Relief USA facilitates Zakat and Sadaqah charity contributions. Redirecting funds to charitable causes is an ethical alternative to interest-based investments and aligns with Islamic financial philosophy.
  • Average Price: Any amount can be donated.
  • Pros: Fulfills religious obligation, provides immense social benefit, purifies wealth, direct impact on communities in need.
  • Cons: Not an investment for financial return, but a spiritual and social investment.

• IFG.VC Islamic Finance Guru Venture Capital

  • Key Features: A UK-based platform with a growing presence, IFG.VC focuses on Sharia-compliant startup investments, offering opportunities for accredited investors to participate in ethical, high-growth businesses.
  • Average Price: Investment minimums are typically higher, suitable for sophisticated investors.
  • Pros: Direct investment in ethical businesses, potential for high returns aligned with Sharia principles, strong community and educational resources.
  • Cons: High-risk, illiquid investments, primarily focused on the UK market but with global aspirations.

• Islamic Finance Knowledge

  

  • Key Features: Investing in knowledge about Islamic finance itself. Numerous books and online courses delve into Sharia-compliant financial practices, offering a foundational understanding to make informed, ethical choices.
  • Average Price: Varies from free online resources to hundreds of dollars for comprehensive courses or book sets.
  • Pros: Empowers individuals to understand and apply Islamic finance principles, provides a strong basis for avoiding impermissible transactions, promotes financial literacy.
  • Cons: Not a direct investment vehicle, requires time and effort for self-study.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Understanding the Perilous Landscape of FundingSecure.com

Based on the information available on its homepage, FundingSecure.com presents a stark warning about the dangers of certain financial models, particularly those involving Riba interest, which is forbidden in Islam.

The website is not an active, thriving investment platform.

Rather, it is a site detailing the ongoing administration and legal battles of a company that entered administration in October 2019. This section delves into the critical aspects of FundingSecure.com’s situation, highlighting why it is a platform to be avoided, both from a financial risk perspective and an Islamic ethical standpoint.

FundingSecure.com’s Operational Collapse and Legal Entanglements

The primary message on FundingSecure.com’s homepage is an “Important Update” detailing the company’s administration. This isn’t just a hiccup.

It’s a complete cessation of normal operations, indicating severe financial distress.

• Appointment of Administrators: Jonathan Avery-Gee, Edward Avery-Gee, and Daniel Richardson of CG & Co were appointed Administrators on October 23rd, 2019. Their role is to manage the company’s affairs, which means the original management no longer controls the business.
• Statutory Moratorium: The company is protected from third-party actions due to a statutory moratorium. This prevents creditors from initiating or continuing legal proceedings without administrator or court consent, essentially freezing claims to allow the administrators to assess and manage the situation.
• Limited Communication: The website explicitly states that the administrators can “only be able to respond to urgent queries” via a dedicated email, [email protected]. This is a clear sign of a company in crisis, where general inquiries cannot be entertained.
• Ongoing Legal Battles: The most alarming aspect is the series of “NOTE” updates detailing a complex legal claim from JC Starr Holdings Ltd concerning £500,000 paid into the company’s client account. This claim asserts a “Quistclose Trust,” meaning the funds were supposedly held in trust for a specific purpose, rather than being part of FundingSecure’s general assets.
  • Frozen Payments: Due to this claim and pending its resolution, administrators have had to “suspend further payments to the investors by way of distribution from the client account/platform until further notice.” This means investors cannot access their funds.
  • Litigation and Investor Indemnity: The latest updates NOTE 6 onwards describe high-court proceedings initiated by JC Starr and the appointment of a representative party, Paul Mundy, to defend investors. Crucially, the court has ordered that Mr. Mundy’s legal fees are to be paid by the investors themselves, out of funds currently held for them by FundingSecure. This is a direct reduction of investor capital to cover legal costs, highlighting the immense financial burden placed on those who invested. For example, a sum of £50,000 was paid from investor funds for legal fees on May 9, 2024, with estimated monthly costs of approximately £22,000.

The Problem of Riba Interest in FundingSecure.com’s Model

Before its collapse, FundingSecure.com operated as a peer-to-peer lending platform. Its homepage clearly advertised:

• “High interest rates – up to 16% pa”: This is a direct advertisement of Riba interest.
• “We offer interest rates well above those offered by high street banks”: Further emphasizing the competitive, yet Islamically forbidden, nature of its returns.
• “Interest from the point of investment”: Investors would start earning interest immediately.

In Islam, Riba is strictly prohibited.

It refers to any increase or addition, however small, over and above the principal sum lent or borrowed.

The Quran and Hadith unequivocally condemn Riba, emphasizing its exploitative nature and its detrimental impact on economic justice and social harmony.

• Quranic Prohibitions: Allah says in the Quran: “O you who have believed, do not consume interest, doubled and multiplied, but fear Allah that you may be successful.” Quran 3:130. And: “Allah has permitted trade and forbidden interest.” Quran 2:275.
• Economic Impact: Riba concentrates wealth in the hands of a few, discourages productive investment in real assets, and promotes financial instability by increasing debt burdens.
• Ethical Standpoint: From an Islamic perspective, any financial transaction involving interest is invalid and a source of impermissible earnings. This applies to both receiving and paying interest. Therefore, a platform like FundingSecure.com, built on an interest-based model, is inherently unethical and forbidden for Muslims.

Why FundingSecure.com is Not a Viable Option

Combining the operational collapse with the Islamic prohibition, FundingSecure.com is unequivocally a platform to be avoided. Mariechantal.com Review

• Zero Financial Viability: The company is in administration, and investor funds are frozen and being used to pay legal fees. There is no active investment opportunity or prospect of reliable returns.
• Extreme Risk of Capital Loss: The situation described on the homepage indicates a very high likelihood of significant, if not total, capital loss for investors.
• Ethical Impossibility: Even if the platform were operational and stable, its reliance on Riba would make it haram forbidden for Muslims to engage with.
• No Active Business: The website is essentially a bulletin board for legal updates, not a functioning financial service.

In sum, FundingSecure.com serves as a cautionary tale.

Its current state underscores the inherent risks in speculative, interest-based financial ventures.

For Muslims, the prohibition of Riba adds another, insurmountable layer of unacceptability.

FundingSecure.com Features Prior to Administration

Before its current state of administration, FundingSecure.com operated as a peer-to-peer lending platform. While it’s crucial to reiterate that the platform is no longer operational for new investments and its past features are largely irrelevant given its collapse, understanding them helps illuminate the model that ultimately failed and was, in any case, impermissible from an Islamic standpoint due to Riba.

Peer-to-Peer Lending Mechanism

FundingSecure facilitated direct connections between individuals or businesses needing funds borrowers and individuals or entities willing to lend investors.

• Direct Matching: The platform aimed to cut out traditional banks, allowing borrowers to access capital and investors to earn higher returns by matching them directly.
• Asset-Based Lending: A key distinguishing feature was its emphasis on asset-backed loans. Borrowers would secure loans against various assets.

Types of Assets Accepted for Collateral

The platform’s business model revolved around lending against a diverse range of high-value assets. This was promoted as a risk mitigation strategy.

• Tangible Assets:
  • Jewellery, Gold and Precious Stones: High-value portable assets.
  • Luxury Watches: Including renowned brands.
  • Classic and Luxury Cars: Vehicles often appreciating in value.
  • Fine Art: Paintings, sculptures, and other valuable art pieces.
  • Yachts/Boats Marine Loans: High-value marine vessels.
  • Collections: Rare books, stamps, coins, or other valuable collections.
• Property Loans: Loans secured against commercial and residential properties.
• Other Items: A broad category for other high-value assets not explicitly listed.

Investment Products Featuring Riba

FundingSecure offered specific investment products designed to attract investors with the promise of high interest returns.

These products are problematic due to their interest-based nature.

• FS30 Account:
  • Targeted 5.3% on shorter term investments: Designed for investors seeking quicker returns on short-term loans.
  • Monthly Interest Payments: Provided regular income to investors.
• Innovative Finance ISA IFISA:
  • Tax-Efficient Investing: This was a UK government scheme allowing individuals to earn tax-free interest on peer-to-peer loans.
  • Platform Integration: FundingSecure integrated this, allowing qualifying UK investors to invest through the platform without incurring tax on earned interest, further highlighting the centrality of interest to their model.

Borrower Benefits Prior to Administration

The platform also touted benefits for borrowers, primarily centered around speed and flexibility compared to traditional bank lending.

• Speedy Finance: Claimed approval and funds in “as little as 24 hours” for certain asset-backed loans.
• Less Reliance on Credit Worthiness: Emphasized the asset’s value over the borrower’s credit score, potentially appealing to those with limited credit history but valuable assets.
• Discreet Process: Offered a confidential way to secure finance.

Investor Dashboard and Reporting

The platform provided tools for investors to manage their portfolios. Eruditeessence.com Review

• Easy to Use Dashboard: A system for managing investments.
• Loan Statistics: Offered data on past loan performance though this is now highly questionable given the administration.
• Secondary Market: Allowed investors to potentially sell their loan parts to other investors, theoretically offering liquidity.

Risk Mitigation As Claimed by the Platform

While the website acknowledged that “No investment is without risk” and “Your capital is at risk if a loan defaults,” it also claimed to mitigate risk.

• Professional Valuations: Assets were supposedly professionally valued.
• Loan-to-Value LTV Restriction: Loans were restricted to a typical maximum of 70% of the asset’s value, providing a buffer.

Despite these claimed features and risk mitigation strategies, the current state of FundingSecure.com demonstrates that these measures were insufficient to prevent its collapse and the freezing of investor funds. More importantly, from an Islamic perspective, the fundamental reliance on interest Riba rendered all these features impermissible from the outset.

The Significant Disadvantages of FundingSecure.com

Considering FundingSecure.com’s current state and its historical business model, the disadvantages are overwhelming, making it an entirely unsuitable platform. The homepage itself serves as a stark warning.

Current Operational State: Complete Breakdown

The most critical disadvantage is the platform’s current operational status. It is in administration, which signifies a complete financial collapse and inability to conduct business as usual.

• Frozen Investor Funds: The “suspension of further payments to investors by way of distribution from the client account/platform until further notice” is the most severe impact. Investors cannot access their money. This is a direct consequence of the “Quistclose Trust” claim and ongoing legal battles.
• Legal Fees Deducted from Investor Capital: The court order mandating that Mr. Mundy’s legal fees are to be paid directly from investor funds held by FundingSecure is a catastrophic blow. This means investors are losing their principal investment to cover legal costs in a case they may not have initiated or fully understood. For instance, £50,000 was already paid in May 2024, with estimated monthly costs of £22,000.
• No New Investment Opportunities: The website clearly states, “Our current investment opportunities: None currently available.” This means the platform is defunct for its original purpose.
• Limited Communication: The administrators can only respond to “urgent queries,” indicating a complete lack of standard customer support.
• Protracted Legal Proceedings: The numerous “NOTE” updates extending to NOTE 12 and the mention of proceedings from September 2023 and a hearing in April 2024 highlight that the resolution of investor claims is a long, drawn-out, and uncertain process.

Inherent Flaws in the Interest-Based Model Riba

Even if FundingSecure.com were operational and stable, its core business model presents an insurmountable ethical disadvantage for Muslims.

• Explicit Use of Riba Interest: The platform advertised “High interest rates – up to 16% pa” and “Interest from the point of investment.” In Islam, Riba is strictly forbidden. Engaging in such transactions is considered a major sin.
  • Spiritual Impermissibility: For Muslims, any earnings derived from interest are impure and cannot be consumed. This undermines the spiritual well-being and financial integrity of an individual.
  • Economic Injustice: Riba promotes an exploitative system where money makes money without real economic activity, exacerbating wealth inequality and causing financial instability.
• Violation of Islamic Financial Principles: Islamic finance emphasizes profit-and-loss sharing, risk-sharing, and asset-backed transactions without interest. FundingSecure’s model directly contravened these principles.

High Risk of Capital Loss

Despite claims of asset-backed security and LTV ratios, the platform’s collapse demonstrates the inherent fragility.

• Default Risk Materialized: The very risk FundingSecure acknowledged “Your capital is at risk if a loan defaults” has materialized on a systemic level.
• Loss of Principal: Investors are not just facing delayed returns but direct erosion of their principal due to legal fees and potential non-recovery of funds.

Lack of Accountability and Clarity During Crisis

While the administrators provide updates, the sheer complexity and duration of the process reveal systemic issues.

• Complex Legal Terminology: Terms like “Quistclose Trust” are complex and require legal expertise to understand, placing a burden on individual investors.
• Investor Burden for Legal Advice: The website explicitly recommends investors “obtain legal advice on the claim,” further adding to their financial burden and stress.

In conclusion, FundingSecure.com is a cautionary tale of a failed financial venture built on an ethically impermissible foundation Riba. Its current state of administration, frozen funds, and deductions for legal fees make it an absolute no-go, both from a financial risk perspective and as a fundamental violation of Islamic financial principles.

Exploring Ethical Alternatives to Interest-Based Finance

Given the severe issues and the impermissibility of interest-based models like FundingSecure.com in Islam, it’s vital to explore truly ethical and Sharia-compliant alternatives.

These options adhere to Islamic principles, focusing on real economic activity, risk-sharing, and justice. Ridgeway.com Review

Sharia-Compliant Investment Platforms

These platforms offer ways to invest in ethical businesses and assets without involving interest.

• Equity-Based Crowdfunding:
  • Model: Instead of lending money for interest, investors purchase equity shares in a business. If the business profits, investors share in those profits. if it loses, investors share in the losses. This aligns with the Mudarabah profit-sharing or Musharakah partnership principles.
  • Benefits: Supports real economic development, promotes entrepreneurship, potential for high returns, and fully Sharia-compliant.
  • Examples: While specific platforms vary, look for crowdfunding platforms focused on ethical businesses that explicitly state Sharia compliance or avoid interest-based funding structures. Many tech startups or sustainable ventures raise capital this way.
• Halal Stock Market Investing:
  • Model: Investing in publicly traded companies that meet specific Sharia screening criteria. These criteria exclude companies involved in alcohol, tobacco, gambling, conventional banking interest, pornography, and certain types of debt.
  • Benefits: Diversification, liquidity for major stocks, accessibility for individual investors.
  • Tools: Apps like Zoya App or IslamicFinder Halal Investing can help screen stocks for compliance.
  • Platforms: Many conventional brokerage accounts can be used, provided the investor selects Sharia-compliant stocks.
• Sukuk Islamic Bonds:
  • Model: Sukuk are Sharia-compliant financial certificates that represent ownership in tangible assets or a share in a specific project or business venture. Unlike conventional bonds that pay interest, Sukuk pay a share of the profits generated by the underlying asset or venture.
  • Benefits: Income generation, asset-backed security, Sharia-compliant alternative to fixed-income investments.
  • Availability: Offered by governments e.g., Malaysia, UAE and corporations, often accessible through Islamic finance institutions or specialized funds like those offered by Wahed Invest.
• Sharia-Compliant Funds ETFs/Mutual Funds:
  • Model: Professionally managed funds that invest in a diversified portfolio of Sharia-compliant stocks, Sukuk, or other halal assets. Fund managers ensure all underlying investments meet Islamic guidelines.
  • Benefits: Diversification, professional management, ease of access for retail investors.
  • Examples: Funds from providers like Wahed Invest or other ethical investment houses.

Ethical Islamic Banking and Financing

For borrowing or major purchases like homes, interest-free alternatives are crucial.

• Murabaha Cost-Plus Sale:
  • Model: The bank or financier buys an asset e.g., a car, equipment, or house and then sells it to the customer at an agreed-upon higher price, payable in installments. The profit for the bank is part of the sale price, not interest on a loan.
  • Application: Commonly used for home financing, vehicle financing, and consumer goods.
  • Example: Guidance Residential in the US uses this model for home financing.
• Musharakah Partnership:
  • Model: A partnership where both the financier and the customer contribute capital to purchase an asset e.g., a home. Both parties share the ownership, and also share profits and losses proportionally to their contributions. For home financing, the customer gradually buys out the bank’s share.
  • Application: Ideal for large asset acquisitions, especially homes.
  • Benefits: True risk-sharing, equitable distribution of profits and losses.
• Ijarah Leasing:
  • Model: A lease agreement where the bank owns an asset and leases it to the customer for a fixed rental period. At the end of the lease, ownership may transfer to the customer.
  • Application: Used for equipment financing, and sometimes for cars or real estate.
  • Benefits: Avoids interest by structuring as a lease.

Microfinance and Ethical Lending

For smaller scale needs or supporting community development, ethical microfinance initiatives offer interest-free loans Qard Hasan.

• Qard Hasan Benevolent Loan:
  • Model: A loan extended on the basis of goodwill, where the borrower is only required to repay the principal amount. No interest or additional charges are permitted.
  • Application: Often used in microfinance to empower small businesses in underserved communities or for individuals facing financial hardship.
  • Benefits: Social justice, compassion, helps alleviate poverty without exploitation.
  • Providers: Many Islamic NGOs and community organizations offer Qard Hasan schemes.

By choosing these ethical alternatives, individuals can ensure their financial activities align with Islamic principles, fostering economic fairness, real growth, and spiritual purity, in stark contrast to the risks and prohibitions associated with platforms like FundingSecure.com.

How to Avoid Falling Victim to Financially Problematic Platforms

The FundingSecure.com case is a potent reminder of the importance of due diligence, understanding financial models, and adhering to ethical principles in investment.

To avoid similar pitfalls, especially for those seeking to engage in Sharia-compliant finance, here are key strategies.

Thorough Due Diligence and Research

Never rush into any investment.

Take the time to meticulously research the platform, its history, and its financial health.

• Check Regulatory Status: Verify if the platform is regulated by relevant authorities e.g., FCA in the UK, SEC in the US. For FundingSecure.com, the “Authorised and Regulated by the Financial Conduct Authority Reference number 698305” note is present, but it’s crucial to check if the regulation is active and if there are any warnings or administration notices associated with the company on the regulator’s official website. This is what would have immediately flagged FundingSecure’s problems.
• Review Company History: Look for news articles, public records, and independent reviews. A long history of operational issues or a sudden disappearance of management are major red flags.
• Examine Financial Statements: If available, scrutinize financial reports. Look for signs of instability, such as consistent losses, high debt-to-equity ratios, or unusually high operating expenses.
• Understand the Business Model: Clearly understand how the platform generates returns. If it’s peer-to-peer lending, understand the default rates, how loans are secured, and the mechanisms for recovery in case of default.
• Read Terms and Conditions T&Cs Carefully: The fine print often contains crucial information about risks, fees, and dispute resolution. Understand your rights and obligations.

Prioritizing Sharia Compliance

For Muslim investors, this is non-negotiable and provides an additional layer of ethical screening.

• Avoid Riba Interest at All Costs: Any platform explicitly advertising “interest rates” or whose core model involves charging or paying interest is forbidden. This is the primary reason FundingSecure.com is impermissible.
• Ensure Asset-Backed Transactions: Islamic finance emphasizes real economic activity and tangibility. Ensure that investments are linked to real assets, goods, or services, not merely speculative financial instruments.
• Demand Profit-and-Loss Sharing: True Islamic finance involves risk-sharing. If you’re investing, you should share in the profits when things go well and the losses when they don’t, proportional to your investment. Fixed, guaranteed returns unless based on legitimate sales/leasing are often indicative of Riba.
• Verify Sharia Supervision: For platforms claiming to be Islamic, check if they have a credible Sharia board or advisory committee. These scholars ensure compliance with Islamic law.
• Avoid Gharar Excessive Uncertainty and Maysir Gambling: Ensure the investment terms are clear, and there’s no excessive uncertainty or elements of pure chance, which are also forbidden.

Red Flags to Watch Out For

Be highly suspicious of any platform exhibiting these characteristics: Crystalknows.com Review

• Unrealistic Returns: If a platform promises unusually high returns e.g., 10-20% guaranteed monthly with “no risk,” it’s almost certainly a scam. Financial markets simply don’t operate that way.
• Pressure Tactics: High-pressure sales tactics to invest immediately, or threats of missing out on a “limited-time opportunity.”
• Lack of Transparency: Vague information about how profits are generated, hidden fees, or difficulty finding contact information or management details.
• Complex or Unexplained Models: If you can’t understand how the platform works, or if explanations are overly convoluted, walk away.
• Testimonials Only: A reliance solely on glowing testimonials without verifiable data or independent reviews.
• Administrative Notices/Legal Disputes on Homepage: As seen with FundingSecure.com, if the very first thing you see is an “Important Update” about administration, frozen accounts, or legal battles, it’s a catastrophic sign.

By combining meticulous financial scrutiny with an unwavering commitment to Sharia compliance, individuals can significantly reduce their risk of engaging with problematic or impermissible financial platforms.

Always remember: if it sounds too good to be true, it probably is, and if it involves interest, it’s definitively off-limits in Islam.

Frequently Asked Questions

What was FundingSecure.com primarily known for?

FundingSecure.com was primarily known as a UK-based peer-to-peer lending platform that connected borrowers seeking asset-backed loans with investors looking for high-interest returns.

Is FundingSecure.com currently operational for new investments?

No, FundingSecure.com is not operational for new investments. The website explicitly states, “Our current investment opportunities: None currently available,” and details the company’s administration status.

What is the current status of FundingSecure Limited?

FundingSecure Limited has been under administration since October 23rd, 2019. This means its affairs are controlled by appointed administrators, not its original management.

Are investor funds on FundingSecure.com currently accessible?

No, investor funds on FundingSecure.com are currently suspended from distribution due to ongoing legal disputes, specifically a “Quistclose Trust” claim.

What is a “Quistclose Trust” in the context of FundingSecure.com?

A “Quistclose Trust” refers to a legal claim made by a creditor JC Starr Holdings Ltd asserting that £500,000 paid into FundingSecure’s client account was held in trust for a specific purpose, meaning it should not be treated as general company assets, and its ownership is disputed.

Are investors’ funds being used to cover legal fees related to the administration?

Yes, a High Court order has mandated that legal fees for the investor representative Paul Mundy are to be paid by the investors themselves, out of funds currently held by FundingSecure/the Joint Administrators.

For example, £50,000 was paid in May 2024 for legal costs.

What is the primary ethical concern for Muslims regarding FundingSecure.com’s business model?

The primary ethical concern for Muslims is that FundingSecure.com’s core business model involved Riba interest, explicitly advertising “High interest rates – up to 16% pa.” Riba is strictly forbidden in Islam. Allassignmentservices.com Review

Is peer-to-peer lending permissible in Islam?

Generally, traditional peer-to-peer lending that involves interest Riba is not permissible in Islam. Sharia-compliant alternatives focus on profit-and-loss sharing, equity partnerships, or asset-backed transactions without interest.

What are some Sharia-compliant alternatives for investments?

Some Sharia-compliant investment alternatives include equity-based crowdfunding, investing in halal stocks screened by apps like Zoya App, Sukuk Islamic bonds, and Sharia-compliant funds like those offered by Wahed Invest.

How can one avoid platforms similar to FundingSecure.com?

One can avoid similar problematic platforms by conducting thorough due diligence, checking regulatory status, scrutinizing financial statements, understanding the business model, reading terms and conditions carefully, and being wary of unrealistic returns or high-pressure tactics.

What should an investor do if they have funds tied up with FundingSecure.com?

Investors with funds tied up should contact the administrators via their provided email [email protected], carefully review all updates on the website, and seek independent legal advice to understand their position and options, as recommended by the administrators.

How can I verify if a financial platform is Sharia-compliant?

To verify Sharia compliance, look for platforms with a clear Sharia board or advisory committee, ensure their model avoids Riba interest, Gharar excessive uncertainty, and Maysir gambling, and focuses on real asset-backed transactions or profit/loss sharing.

What is the role of the FCA in the FundingSecure.com administration?

The FCA Financial Conduct Authority consented to the administrators’ appointment and is working closely with them, indicating regulatory oversight over the insolvency process.

Why is Riba interest forbidden in Islam?

Riba is forbidden in Islam because it is considered exploitative, concentrating wealth, promoting economic injustice, and being devoid of real economic activity.

It undermines the principles of fair trade and risk-sharing.

What is the difference between conventional finance and Islamic finance regarding risk?

In conventional interest-based finance, the lender bears little to no risk beyond default.

In Islamic finance, the financier shares the risk with the entrepreneur/borrower, aligning returns with actual profit and loss from real economic activity. Vaporking.com Review

What are Murabaha and Musharakah in Islamic finance?

Murabaha is a cost-plus sale where the financier buys an asset and sells it to the customer at an agreed-upon higher price, payable in installments. Musharakah is a partnership where both the financier and customer contribute capital and share profits and losses. Both avoid interest.

Can I get an Islamic home loan?

Yes, you can get an Islamic home loan through providers like Guidance Residential that use Sharia-compliant models such as Murabaha or Musharakah, which do not involve interest.

What are the risks of investing in peer-to-peer lending platforms?

The risks include borrower defaults, platform failure as seen with FundingSecure.com, lack of liquidity difficulty selling investments quickly, and regulatory changes.

What is the significance of the “Authorised and Regulated by the Financial Conduct Authority” statement on FundingSecure.com’s homepage?

While it indicates the company was regulated, the crucial part is “In Administration” after it.

This signifies that despite being regulated, the company failed and is now undergoing insolvency proceedings, highlighting that regulation doesn’t guarantee solvency.

Where can I learn more about ethical Islamic finance?

You can learn more about ethical Islamic finance by reading books on the subject, accessing online courses, or consulting resources from reputable Islamic finance institutions and scholars.

Many educational resources are available, often starting with a search for Islamic Finance Books.

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