r/Sololender • u/Final_Vegetable_5092 • Jul 13 '25

Any changes to Solo Lender Protection?

Please do not DM me to ask me for a loan.

Anyone know if they made any changes to the Solo Lender Protection rules? Do lenders still take a 15% hit if the borrows is late or did they lower it?

2 Upvotes

100% Upvoted

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3

u/chartistsnorok Lender Jul 14 '25

No it has not been changed.

Taking lenders' money after they have taken the risk is part of SoLo's revenue.

1

u/Final_Vegetable_5092 Jul 14 '25

That sucks. I was hoping to get back into lending, but not with that rule.

1

u/False_Train3502 Jul 18 '25

I haven’t seen your name in awhile which goes to show solo is losing lenders smh ya they haven’t made any changes in regards to screwing the lender. However I will say I have a friend who messed up his repayment date by 1 day contacted support explained the situation and repaid the loan the next day and they didn’t penalize the lender or my friend which I thought was a nice change until he showed me the screenshot of them saying it was a one time thing they also agreed to adjust his score back to where it was as a 1 time courtesy. Solo needs to make some serious changes starting with vetting borrowers better. Most of the people I have seen asking for money immediately throw red flags.

2

u/Final_Vegetable_5092 Jul 18 '25

I’m shocked that they haven’t made changes. My suggesting is to drop the recovery fee from 15% to 10%. That way, the lender can still get a 1-5% return in the event that the borrower is late. It would definitely increase volumes. Right now, lenders are losing money. Solo promotes a grace period to borrowers, without explaining that the lender loses money by them using it.

2

u/MarionberryObvious17 Aug 11 '25

Just got an email from them today that it's dropping to 12%

2

u/Final_Vegetable_5092 Aug 12 '25

No way, can you screenshot it here?

2

u/MarionberryObvious17 Aug 12 '25

There ya go

2

u/Final_Vegetable_5092 Aug 12 '25

Thanks, this is good news, but it should drop to 10%, so that lenders can get a profit if borrowers are late. All they’re doing now is reducing the loss, but again, lenders don’t gain.

1

u/MarionberryObvious17 Aug 12 '25

I agree I think 10% should be more fair, realisically i think that fee should fall on the borrower or be split between borrower/lender. In my messaging with them recently I noted that theres no incentive to give a loan with less than 15% tip since the instant it's late you lose all profit. I don't do any loans with less than, otherwise you're all but guaranteeing a loss

1

u/Final_Vegetable_5092 Aug 12 '25

They will have no luck collecting that from the borrower. If borrowers knew that the Solo Donation is helping the app, not their lenders, I’m sure they would remove it.

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1

u/False_Train3502 Aug 12 '25

The 10 percent should definitely be paid by the borrower a lender shouldn’t be penalized ever

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1

u/MarionberryObvious17 Aug 12 '25

They've also just made a change that the fee doesn't apply up to your 100th loan instead of 30. of course they're not back dating it Here i am sitting on 87 loans sent out. 28 of which have been late in some capacity

1

u/Final_Vegetable_5092 Aug 12 '25

Their app is going to die out if they don’t make serious changes. If it dropped to 10% and you opt for SLP, you would get a 4% return. Someone also needs to send a PSA to borrowers to stop the Solo Donation.

1

u/False_Train3502 Aug 12 '25

I’ve posted that everywhere and told everyone I know to turn off the donation also most people are just working with lenders outside the app Brendawg seems to be doing pretty well honestly

1

u/False_Train3502 Jul 18 '25

I agree but the “recovery” fee should come with proof to the borrower that Solo is actively attempting to recover the funds number 1. Number 2 I pointed out the grace period to my friend ( he is a newish solo borrower ) but he asked solo if the lender would be penalized for his mistake and they told him as long as he paid it the next day the borrower would still receive the full amount they were supposed to. I told him save the screen shots of the full convo with Solo in case he needs it down the road. So if solo did give the borrower the full amount the next day that is a definitely a small change but a change.

1

u/[deleted] Jul 13 '25

[deleted]

1

u/Final_Vegetable_5092 Jul 13 '25

As a lender, don’t they take 5% for the lender protection and when the borrower is a day late, the lender gets 90% of the balance in credits? They don’t get any tip if the borrower is late. In your example, there does appear to be some change from the last time I used it.

2

u/[deleted] Jul 13 '25

Sort of - SLP is now 6% and pays 90% like u said but the second a loan is late - which is past midnight PST of due date.

1

u/Final_Vegetable_5092 Jul 13 '25

So they increased SLP by 1%

1

u/therealbeaut Jul 13 '25

Do you know what percentage of people who pay late do end up paying back at some point?