Quote from: BitLendingClub on March 02, 2015, 07:19:26 AM

Quote from: Stratobitz on March 02, 2015, 06:30:02 AM

Quote from: BitLendingClub on March 02, 2015, 02:33:47 AM

Quote from: superbit on March 02, 2015, 02:32:03 AM

Quote from: Stratobitz on October 22, 2014, 10:10:00 AM

We did a total of 13 Loans on BitLendingClub. Only lending to users with 100-300+ positive feedback.

Thus far of the 13..... 7 have defaulted and not repaid.

Would not recommend.

Strato

Same results for me. Terrible experience would not recommend at all.

EDIT: I just found your profile: https://bitlendingclub.com/user/investments/id/4479/superbit

I'm sorry for your experience. I see that 3 out of your 5 investments are in default. One being the top user on the site, Leon Stafford, who has been communicating and working to make payments. We're working to improve the site, but again, I would like to highlight that the overall default rate on the platform is 7.24%. BitLendingClub only collects its fees from repayments, so it's in our best interest to lower the default rate. We take defaults seriously on our platform.
Best Regards,
The BitLendingClub Team

This isn't my profile. I'll msg you my profile.

However, I posted my original complaint over 3 months ago- and it is only now being addressed.

When I first joined the site and made investments; I was under the impression that a certain minimum level of due diligence was being done in terms of the background checks and "required" documentation in order to post and take out a loan. I then received the attached document via email regarding one of my defaulted loans.

This document; to me says one thing: It is VERY easy to get approved to request a loan on this site.

The borrower on this document supplied a "Drivers License". No Expiration Date. No Date of Birth. No Country of Issue. This "Lender" agreement / Loan Application is a joke.

I think any users considering investing or joining BitLendingClub should take a good look at this document and ask themselves if the site/owner is actually fulfilling their end of the agreement in terms of providing at least the minimum "promised" level of protection it advertises to it's lenders.

Lastly; the other loans which defaulted - I never received any such document nor has this information been posted on the site on my dashboard. I assume this basically means the information was never collected nor recorded by the site administrators as promised.

Strato

image hosting 5mb

Hi Strato,
I usually try to search for posts related to BitLendingClub, but given all the work we're doing and the fact that we don't get notifications, I end up missing some of them.

The document you've received is from an older profile. In the early days we didn't require the user to enter all of the data at the time it was provided. We also can no longer just "hand over" the documents of the users, because it poses legal issues. However, now we require a lot more information to be entered and we're going through an overhaul of the system. Our initial assumption is that the lenders will perform a lot more of the due diligence on their own, as the tough questions, etc. As we've been building the system we've found out that lenders do very little due diligence, so we've had to progressively add more due diligence steps. It's a slow process, but we're making progress. Of course, I understand that you're probably not going to be investing into the platform anytime soon again, but I just wanted to address the issues at hand. We're certainly taking note of the problems and we're working to resolve them.
Best Regards,
Kiril Gantchev
Connect with us:
Twitter: @BitLendingClub
Facebook: https://www.facebook.com/bitlendingclub
Google+: https://plus.google.com/+BitLendingClub

While I appreciate your response. Perhaps you could explain better your business plan; as well as how your terms of service will work under a system where BLC act's as the agent; and the lender is expected to deal directly with the borrower - yet not be provided with any of the "fact checked" information they provide upon registration.

- You mentioned you can no longer simply hand over personal information like you have done in the past. I don't see how your user agreement couldn't cover this in terms of a release agreement with the borrowers. It's a TOS issue. Borrowers consent that in the event of default the information they submitted shall be provided in whole or in part to the lenders in order for the lenders to collect on the debt. It's as simple as that. If you arent going to hand it over, why even collect it?

- Either your site is going to back and guarantee and handle the collection of bad debts - covering the legal expenses to boot - or your site will be one where your borrows guarantee themselves and the lenders must handle all disputes and defaults. It's one or the other.

- Since you have stated that your standard operating procedure moving forward will not include providing contact and personal information about the borrowers in the event of default; I don't see how lenders will have any recourse whatsoever. Please explain what how BLC will in any way aid recourse options to lenders in the event one of their loans enters into a default situation.

- Under your new TOS how will disputes be settled?

- Your explanation is that you are "overhauling" because you've realized it's the lenders lack the ability or didn't do their own due diligence in terms of the burden to background check the borrowers - which is impossible based on the fact that no information is given prior to the loan other than profile links, doesn't add up. Your site clearly states that information is required from those who borrow; yet the document provided even under the old system shows major flaws in your system... as in the information isn't even there. The document I was provided; can you comment on the gaping holes it contains? I'd love to see a scan of the Driver's License. Blur out the information - but what was actually collected?

- Personally I'm not going to waste my time trying to track down someone halfway across the world to recoup a few bitcoins. But I think your explanation of "We're overhauling the system and are making progress" sounds like you really haven't done anything and don't have a clear plan of action moving forward. This poses a risk to anyone considering joining your site.

- As a hypothetical; (and I stress this as a hypothetical and in no way an accusation of wrongdoing by BitLendingClub) - But you have to admit: There is no way for lenders to know if the profiles created as borrowers are not merely BitLendingClub acting as real people (you; yes you); this of course - hypothetically speaking - in a scheme to fraud investors out of their funds. I stress: this scenario is not an accusation by any means; but if you are not going to provide the information of the borrower to the lender; not back the loans at least with a trust fund which limits loss; then how are users to ever know what to believe? How will this new system better provide accurate credit ratings on their users? What fail safes are you planning on implementing into the system in order to mitigate losses on the lenders end? How will you; in this global virtual currency ecosystem - realistically confirm the information borrowers provide as their "documentation" are not merely fake profiles purchased here or on Reddit; with some photo shopped documents?

The Bitcoin community as a whole has been plagued by scams and fraud since inception.

I simply don't buy your response- or if that is your response; this site lacks any real form of protection and should not in any way be branded an "INVESTMENT" site. It should clearly state: Loan Money to Strangers. I think your Business Plan and PR Plan really need some work.

Lastly; I am curious. You mention an overall default rate of 7%. Can you please break that down: Number of Loans; Number of Loans Current; Paid; Past Due; Deafult - and then as a separate column provide the same stats for BTC/FIAT in Paid; Current; Past Due or in Default. I'm not sure what the 7% represents - number of loans; or amount of funds. Are you including past due figures? I have loans on my profile that are MONTHS past due and not marked as in default.

Strato