Up to 2 days before the loan is due, the borrower has the opportunity to opt into a 2-week extension, which we call Rollover. We charge the borrower a 5% or $5 (whichever is greater) Rollover fee that is paid directly to the lender when the borrower repays. At this time we do not allow the lender to accept or decline the borrower’s desire to Rollover a loan, so lenders should bear this in mind as they fund loans.
If the borrower does not opt into Rollover and we are unable to pull funds from the borrower on the specified payback date, the borrower is sent to Collections Pending. Collections Pending is a 60 day period during which SoLo makes numerous attempts to collect funds on behalf of the lender. Our team sends multiple emails and push notifications and also calls the borrower to collect funds. The borrower is charged a 5% or $5 (whichever is greater) Collections Pending fee that is paid directly to the lender when the borrower repays.
If the borrower still does not repay during Collections Pending, the borrower automatically goes to Collections, where we send the borrower’s account to our third-party collections agency who attempts to collect funds from the borrower on the lender’s behalf. Our collections partner (not us!) takes a 30% cut of whatever funds they are able to collect. At this point, the borrower will also be banned from using SoLo in the future and they may be reported to the major credit bureaus with a derogatory mark, which would negatively impact their credit score for the next 7 years.