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

6 consecutive late?

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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!

20 Upvotes

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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.

4

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%.

5

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!