u/DragonfruitLife6495

So I will say right off if you don't want to read this whole thing, Don't do it..

I initially started very small to test the waters and see if it was a viable way make some passive income, I saw the numbers like this: for every 100 loans, 60 would pay back, 40-30 would pay back within a month and the other 10 would default. Now the predatory fees solo the platform inacts.. so they have it that they will make money no matter what! Hear me out... they make money when everything goes great like it should from the borrowers donation.. they also make money when borrowers are even a day late with fees on the borrowers and YOU! it's called a recovery fee and they literally take it out of you the lender at 12% of the principal, that should be illegal but apparently the courts recently this year sided with them.. so now you lose money on every single loan that was late and not over 12% tip, you broke even on all the ones that were 12% and made very little money on the ones over 12%. Then after 30days late they add another charge that's supposed to go to the lender but they know the numbers, they only add that fee after 30+days because they know that 90% of the time if they haven't paid back by 30days, then it's gonna be a default loan and you won't be getting that fee anyway. Finally they make money on all the defaults because of the donation that you had to pay upfront as the lender plus the principal so when the borrowers defaults they lost nothing and keep the donation you had to pay leaving you completely holding the bag... I did a total of 100 after the initial test in one month the rules for loaning out were: solo scores 61 or above, no loan bigger then 100, and no newbies. So all my loans were people who have paid back, scores in the blue, and only 100$ to spread the risk. Well 18 are still overdue, the oldest one is 52 days the latest one is 35 days, I assume them all to be defaults... that'll means after tallying up, I lost about $872 and half a year of anxiety on my life... so to wrap up.. DONT DO IT, ITS NOT WORTH IT.​

I was really excited to start this after experimenting with 500$ for a while, when I thought I had it! I started putting real money in and helping so many people. At first l, I never would of thought id have over half my money in overdue loans on the path to default. Yet here I am.. thousands of dollars waiting to be repaid and every day that goes by getting closer to the 90 days where its sent to collections and even if they do pay at some point, you never see any of it. It's raising my anxiety like never before... again I never thought for a sec because when doing 10 loans, never did I have half of them in pre-default.. only like 30% and most of them paid back in the first month.. I could of done soo many more loans and not worrying about the fact that I might have lost the equivalence of a house in this... before anyone asks it was all 61 scores and above, 50-100 $ loan max amount, no first timers and 12% to 15% tip. Besides taking the predatory protection that doesn't protect you at all. What could I have done?..

Im a lender and have a issue with the 12-15% fee that solo gets pretty much eating up your tip entirely because they were a few days late.. and they took money form me the lender not the borrower.. so because the borrower was late, I get charged? That makes no sense at all, don't even get me started on the forced donations to.. like it's my responsibility to tell borrowers that they need to navigate the app and toggle donos off.. again im charged a donation that the borrower picks and if they don't pay, we'll solo already charge you for it so no skin off there end.. pretty scummy to say the least..​​