SoLo Funds

            What happens if a borrower doesn't repay on time?

            Up to 2 days before the loan is due, the borrower has the opportunity to opt in to 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 in to 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 30 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 Lender sends the account to Collections, our Collections partner will make every attempt to collect the amount owed via multiple phone calls per week, by sending physical letters to the Borrower’s home, and even through partial payments. Our Collections Partner takes a 30% fee of anything recovered. Once a loan goes to Collections, you can expect to see at most 70% of the funds returned to you.

            If the lender would like to send the borrower to Collections immediately, they have the option to do that, but note that once the loan is in Collections the lender can only expect to receive a maximum of 70% of the loan back, because our collections partner (not us!) takes a 30% fee of whatever they collect. We advise lenders to let us attempt to collect funds from the borrower during the entire Collections Pending process for the highest likelihood of repayment.

            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. 

            Updated: 13 Sep 2019 07:14 AM
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