For how much time is it possible to decide wether I choose compensation by the warranty fund or keep the loan after default?

creditguru
For how much time is it possible to decide wether I choose compensation by the warranty fund or keep the loan after default?

So long as the debt is active ( the debtor has not paid ), you are entitled to claim compensation from the warranty fund.

omaraha.ee

vlk494

Is there any way we can tell what percentage of a loan can be repaid by the warranty fund and whether it is increasing in value? There seems to be little information about it available to lenders and it is an important feature.

JamesFrance

So far loans from the pools 601-700, 701-800 and 801-900 have defaulted for me. They all offer me a compensation of 30%.

Actually I wonder why it is so low. The FAQ said it would be 50%, 60% and 70% for those pools. What happened there? And why were we not informed?

If you have an investment that is more than three months in debt, then you can sell it back to the warranty fund. Before the sale you can see how big is the compensation and decide whether to sell or wait. Compensation amount depends on fund size and can change every day, at the moment compensation is in the range of 30-40%, but recently we changed payments to warranty fund so hopefully payouts increase in the future.

Would you provide information what percentage of the defaulted loans have been recovered so far? If the investors know this % they will decide more easily whether to sell the defaulted loans or rather wait. If we assume that the recovery rate is good, you pay out only 30-40% and having in mind your statement in the FAQs that the warranty fund can't be depleted even with a very high rate of defaults, the fund should grow progressively. Also, when you pay through the warranty fund, what do you pay - % of the outstanding principal and accrued interest so far or only the outstanding principal?

About 10% of the defaulted loans have been recovered so far through warranty fund, the majority of investors choose to wait. The % is paid only from the outstanding principal.

Thank you for your answer. The picture will be full if we have a few more figures - what's the % of already defaulted loans against the total number of alll loans issued and what's the average % of unpaid capital against the initial capital of the defaulted loans ( please be free to provide even a very rough figure for the last one). It would be interesting to know the average time lenders had waited to get their money back from the successfully recovered defaults and whether they have received all interest due ( and maybe some money in penalties?). These might be tough questions but I am sure you realise that the platform will develop quicker if there's more available information on such sensitive matters as risk exposure and recoveries - actually the main concerns for lenders.

We have a statistics page “Accounts” - “Statistics”, there you can find answers to some of you questions, but unfortunately I dont have more statistics to provide at this time.
The time it takes to recover defaults can vary greatly, some pay immediately if we threaten to go to court, but in some cases it can take 2-3 years.

How is it possible to get the money from the warranty fund? is there somewhere an option button or how is the procedure?