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 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 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.