Quote from: Coinster on April 05, 2018, 12:59:32 AM

Thanks for the input! Hmm, suing for loan default isn't what we had in mind. Sad

Suine is a way to add pressure to the lending scenario. If someone thinks they're under contract and have more to lose than repaying (also, interest gets added to any loan amount when you go to court, along with legal fees so people would like to avoid that if they can).

Quote from: Coinster on April 05, 2018, 12:59:32 AM

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.

I'm not sure using bold/large and colourful print is too helpful.
Maybe if it comes from a place high up or, what works even better, sending people round to commercial premises that the owner owns (with a particularly well labelled van) to identify that the owner of the company has got debts they're unable to pay (people are less likely to buy from the company for as long as the debt collectors are there, thus, adds pressure in a similar way to suing).

Quote from: Coinster on April 05, 2018, 12:59:32 AM

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.

Some will take out loans to default as (free money) if you don't have any way of knowing who they are.
Sure, you can check their identity, but they can lie about it. E.G. If I give a loan on a lending platform, I get an arbitration document with the persons' address and identity on it. With that, I could technically use the details of that to act as ID for other things (I obviously won't as that's fraud), but the option is there for someone to abuse if they so wish.

Quote from: Coinster on April 05, 2018, 05:49:48 PM

Quote from: ThatRandom8543 on April 05, 2018, 01:22:05 AM

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.

If it won't work then, yes, we will remove the no collateral section. However, there may be a way to make it work. I'm not talking about huge amounts. Of course collateral is needed for thousands of dollars. For example, when a person takes out a loan to buy a car, the car itself serves as collateral, since it's repossessed if payments stop. But for much smaller amounts, say always under $1,000, perhaps there is a way to have people prove trustworthiness.

So, for example, I'm thinking a credit score which people work to build. Say a user takes out a loan for just $5. There very little risk of default, right? Once that is paid back then maybe a higher loan of $10 is approved. A user then works to build up their credit by proving a track record of repayment, which allows them to receive higher amounts. I feel many users after working hard to build up a credit rating would rather repay than risk losing it. Sure there will be some defaults, but it shouldn't be the majority.

There's also a difference between people in different countries. $5 in one country might be a weeks worth of food (or even more) in some really poor country.
$5 in my country, would do about a quarter of a meal (if that).
Alos, people might try working for getting a better credit score on your site just to try to get more.

Unless you say, someone can lend $5, the next time they come to your site, they can lend their original $5+the interest the paid once returning the $5.