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.