Loanbase, a Bitcoin peer to peer lending platform, has announced that it has incorporated a collection agency in its services. All past, present and future delinquent borrowers will be handed to this agency for resolution.
Giril Ganchev, who is the Co-Founder and CEO of Loanbase, has stated through a blog post that the selected collection agency has a presence in 90 countries. However, the United States is not among of these countries and so he has asked lenders to still be careful with American lenders. He did not, however, disclose the name of the firm Loanbase has contracted.
The Collector to take 35% of recovered loan
He has, nevertheless, stated that the collection agency through local partners in the 90 countries has the ability to take legal action against any borrower who has been referred to them. The collectors will take 35% of every loan they recover.
While Borrowers will be given an extra period of 30 days to pay up from the day due, they will not be alerted when their loan is handed over to the collection agency.
Loanbase, like the rest in the space, has been relying on a peer review system to encourage borrowers to pay in the agreed time. However, there is no much else that can be done in a case where the borrower chooses to default.
This could change the Bitcoin lending landscape
Loanbase was launched in September 2013 as BitLendingClub and was among the first peer to peer lending platforms to leverage on Bitcoin’s ability to move across borders fast and at almost no cost. The startup rebranded to Loanbase on September 23, 2015, and remains one of the largest P2P Bitcoin lending platforms by volume.
The other major player in the sector is BTCjam, which for a long time was the market leader in volumes until Loanbase surpassed it in June 2015.
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