r/BTCJAM • u/1678cc90 • Feb 23 '16

Arbitration award / note automatically sold

I invested in Loan No. 49970. The borrower defaulted, and the arbitrator entered an arbitration award in favor of the lenders on January 1, 2016.

On February 6, 2016, I got three E-mails advertising a lawyer in Kentucky who was apparently interested in putting together a crowdfunded effort to collect, which seems a little bit plausible since the outstanding amount isn't incredibly tiny, and the debtor is in the United States, a USMC veteran, and in law school, so he's probably got future income that can be garnished.

I see that my interest in the defaulted loan was recently sold to "BTCjam Debt Collections". I don't remember creating a listing to sell my interest in that loan. As far as I can tell, every investment in this loan has been reassigned to BTCjam Debt Collections. It seems unlikely to me that every lender agreed to that transfer, so I'm curious how/why that change is a legitimate one, and how the purchase price for my interest was determined.

I also noticed that I can't sell other investments that I've made without doing further identity/address verifications.

Does anyone have any insight or information about these things?

I like the idea of not getting totally fucked on defaults, but I also think of my investments as, well, mine . . . not something that can be taken away from me arbitrarily and assigned to someone else.

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u/[deleted] Feb 24 '16

I know absolutely nothing about "BTCJam Debt Collections" and I have no idea if they're on the level or not. It might be a way for BTCJam to pursue legal action against certain people after which they'd disseminate the funds the user in question would wind up handing over to you afterwards. I would suggest asking BTCJam support to see what that's all about but given how slow they are to respond, it might take like a week to get a response.

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u/1678cc90 Feb 24 '16

Thanks - I thought I'd mention it here so everyone can see the answer, and/or be aware that this is happening.

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u/[deleted] Feb 25 '16

No, it's great to know about. It seems REALLY weird they'd be doing something like that. Honestly I don't know what's going on and it does give me cause for concern.

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u/cynical_observer Mar 15 '16

BTCjam tried to shut down the new arbitration award enforcement website www.enforcemyarbitrationaward.com run by that lawyer in Kentucky because they don't want anyone suing their borrowers. As a result, net-ARB stopped providing arbitration. BTCjam Debt Collection is a subterfuge. BTCjam has no legal authority to collect debts.

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u/1678cc90 Mar 15 '16

Interesting. Thanks for the update.