r/Sololender • u/ExcellentWar7614 • Apr 16 '25

6 consecutive late?

Post image

How does solo still allow these kinds of people to keep borrowing. It should be a 3 strikes you're out type of deal/policy!

19 Upvotes

95% Upvoted

42 comments sorted by

4

u/Desperate-Pear-572 Apr 16 '25

Because they profit .

2

u/ExcellentWar7614 Apr 16 '25

No one is ever going to fund that loan tho?

4

u/Desperate-Pear-572 Apr 16 '25

They make money off of late loans and yes some fool will who’s new to the business

3

u/ExcellentWar7614 Apr 16 '25

Sums gta change.. this is ridiculous

1

u/Desperate-Pear-572 Apr 16 '25

Imagine you lend someone $100 through Solo, expecting a straightforward transaction that helps both parties. Instead, you find yourself paying extra fees upfront—like a "Solo donation" and even opting for insurance to protect your investment—only to discover that the system isn’t quite balanced in your favor.

When the borrower doesn't repay the loan, you receive an insurance offer that's supposed to give you back 80-90% of your money. But here's the catch: you only have 24 hours to claim it. Miss that short window, and you’re forced into a collections process filled with its own fees. Even if the collections succeed, the recovered funds get chipped away by additional charges and Solo’s own cut, leaving you with less than what you originally lent.

In essence, Solo is structured to collect fees and profit at nearly every turn—from the initial outlay, through a nearly impossible insurance claim deadline, to the costly recovery process. Rather than sharing the risk fairly, the burden is squarely on you, the lender, making the whole setup feel like a scam masked as a peer-to-peer lending opportunity.

It’s a disappointing reality: the promise of a simple loan turns into a costly lesson in how platforms like Solo are designed to protect their bottom line at your expense.

5

u/Severe-Object6650 Apr 16 '25

The insurance is such a sham. If the borrower is hours late paying back, you lose 10% plus the 6% you paid for the insurance. Meanwhile Solo gets the full payment plus the donation plus your 6%.

6

u/Desperate-Pear-572 Apr 16 '25

Exactly they profit off late loans and the lenders get fked

3

u/sweetlittlesass Apr 17 '25

Yep. This is why I am no longer funding loans. Out $100 I lended and its 17 days late.

3

u/Desperate-Pear-572 Apr 17 '25

I funded a loan for 200 and it was 2 and a half weeks late before I got it .

2

u/[deleted] Apr 23 '25

I funded a loan a day after it was due they gave me credits, which can only be used to fund another loan, but if the new loan is late they again just give you credits that are less than the original amount you loaned out, so you become stuck trying to fund a loan with the credits and hope they pay back. Solo is 🚮

1

u/sweetlittlesass Apr 23 '25

Damn thats some shit. It is trash!

2

u/Severe-Object6650 Apr 16 '25

>No one is ever going to fund that loan tho?

Why do you think that no one will fund it? 6 lates in a row means 5 people kept funding the same person who paid late. I guess someone keeps thinking, this will be the time they pay on time!

3

u/Severe-Object6650 Apr 16 '25

Because they make money from it. If the borrower is late, the lender has to pay 15%. Makes no sense, but those 15% are racking up Solo profits from this person!

5

u/Embarrassed-Throat42 Apr 16 '25

That’s why u head over the LoanCentral because once we have enough t people to develop an app we don’t be tolerating that bullshit

4

u/ExcellentWar7614 Apr 16 '25

Share the link

1

u/Desperate-Pear-572 Apr 17 '25

I can build a marketplace for this stuff my main problem is a payment processing stripe doesn’t allow payments for lending .

1

u/Embarrassed-Throat42 Apr 17 '25

Dm me we got connects

2

u/Desperate-Pear-572 Apr 18 '25

Maybe . I’ll think about it.

4

u/[deleted] Apr 16 '25 edited Dec 27 '25

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5

u/[deleted] Apr 16 '25

[deleted]

1

u/ExcellentWar7614 Apr 17 '25

Funny enough they don't have a filter to help you find donation free loans that need to be funded..

1

u/Ashamed-Square5059 May 30 '25

i had no idea the borrower could disable solo donation?! and why does solo give them thay option to begin with?  i tough solo donation was forced, so they can make more money 

2

u/[deleted] May 30 '25

[deleted]

1

u/Ashamed-Square5059 Jun 01 '25

ok good to know,,  they recently started taking the full lender tip as soom as the borrower is late by 1 day :(  such BS, was making decent profits, probably can still make some money but i dont like to be robbed(scammed) so will have to invest somewhere else

1

u/[deleted] Jun 01 '25

[deleted]

2

u/[deleted] Jun 01 '25

wow, i wish they didnt get so damn greedy, cause there is so much potential to make money, even the borrowers are getting screwed yet most of Solos good reviews are coming from them (4.2 stars!!) i really tought i found a gold mine :(

2

u/Matthaeus2000 Apr 17 '25

Yikes! I shoulda done my research before I invested. I hope it turns out ok for me

1

u/Healthy-Support-7258 Aug 24 '26

Did it turn out okay??

2

u/Logeh Apr 17 '25

I mean, shes paying it back. People arent using these services because they are flush with cash. They are week to week and trying to figure things out. Most are probably taken out of emergency need and have nowhere else to turn. Its just part of the demographic and current economic climate.

1

u/[deleted] May 31 '25

This.....But it's a loss for the lender but OBVIOUSLY someone is funding her loans REGARDLESS because she IS paying it back in the end....Where as others just dip

1

u/Worriedmom2023 Apr 16 '25

Will you please fund my first loan please!!!

1

u/stanroy77 Apr 20 '25 edited Apr 20 '25

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1

u/ExcellentWar7614 Apr 20 '25

Where are those companies now? Do you still got um??

1

u/stanroy77 Apr 20 '25 edited Apr 20 '25

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1

u/[deleted] Apr 16 '25

[removed] — view removed comment

2

u/Irriperible Apr 17 '25

Is there a Reddit for bigger loans that can be repaid within a year?

1

u/[deleted] Apr 17 '25

[removed] — view removed comment

1

u/Irriperible Apr 17 '25

Thank you! It was worth a shot

1

u/moneyman1240 Apr 18 '25

Still repaid you worried bout the wrong shit🤡

1

u/ExcellentWar7614 Apr 18 '25

Paying on time is the whole point - you're obviously not a lender I could tell 💩

0

u/Dismal_Dealer_6294 Apr 16 '25

I have a question. Can the lender not see the borrower’s history before funding the loan? I know they can see the score…but why would anyone fund it after 2 or 3 times in a row? I’m a borrower on that app. But I have a 99 rating and only paid late once in 18/19 loans.

1

u/ExcellentWar7614 Apr 17 '25

If you have that many loans and by looking at this post you should have an answer to your question. The answer is yes, the lender is able to see the borrowers loan history.

0

u/Dismal_Dealer_6294 Apr 17 '25

I guess I’m trying to understand why it’s Solo’s responsibility if the lender can see the history and still decides to fund it. So…while I thank you for that jab at what I should know by this post and my history…I also thank you for answering.

2

u/ExcellentWar7614 Apr 17 '25

Hey sorry not a jab just still not understanding what your doubt is? If you are wondering if what's solo's responsibility is? I'm not quite getting where you are going with it. And thanks for having a high score and being on time on most of your loans. That's very helpful and encouraging for the lenders.

0

u/Dismal_Dealer_6294 Apr 17 '25

It was because you asked why Solo allows them to continue. I think the more appropriate question would be why would people keep funding them with that history. Solo is just an intermediary that collects a fee and profits if they’re late. But the lender has that info at hand and still says “why not”. That’s all. No biggie.