So you are verifying identity.
That will only help you if you are registered, legal and ready to sue. People will take advantage of you until you prove you are all three.
That will only help you if you are registered, legal and ready to sue. People will take advantage of you until you prove you are all three.
Thanks for the input! Hmm, suing for loan default isn't what we had in mind.
I don't think that's desirable for either loan providers or recipients. I'm thinking more along the lines of incentive not to default. For example, in the real (not crypto) world people don't fear getting sued for loan default. They're more afraid of debt collection activities, bad credit ratings etc. Long ago I worked for a company that had a simple policy of sending out reminders of payment due, but the key was using attention getting colors, like red or neon labels with bold lettering saying things like "PAYMENT OVERDUE" "LATE REMINDER" etc. The idea was people don't like others believing they're not on the up and up, even if it's just the mailman.
The trick is making it more attractive to repay the loan than to default. I don't think everyone taking out a loan has intention to default. Instead unforeseen circumstances might come up and things get out of hand.
All those things can lead to getting sued. Some will sue as a way to pressure the debtor into paying, others will do it because that is their last option. Some have already had bad credit and can still get loans through alternative methods, which could lead to lawsuits. So yes, in the real world, people will be afraid of being sued, which such judgement can impact their credit ratings even more. Little example of the "methods" you mentioned: BTCJam (now closed) would send payment reminders to those who are late making payments. That didnt work. I've watched nearly 100btc go down the drain. On top of that, people can easily falsify information which in the end will cost you a whole lot.
I would advise that you rethink what you are doing if you are being serious because I can promise you, it will cost you alot down the road.