An important thing you can do is to ban a user from taking out any more loans until they have paid back the loan that they already have out.
You missed my entire point. Bans aren't working as people (scammers) can just set up another fake account, and continue harming the community. It's btcjam's account verification that lacks big time as scammers can easily walk fake accounts through the verification process.But what happens to the outstanding loans? And also, what is the incentive for people with outstanding loans to pay up?
They know that BTCJam is going to close down and their reputation there hardly matters.
Honest people will continue paying off their debt, but I am fairly sure that a large portion of the people there will just leave and never come back. Especially when you consider that the funds are either used to trade with, to gamble with, or to pay bills. In order to pay back, these people will have to purchase Bitcoin at current levels, and that's obviously not something a lot people look forward to. Easiest and cheapest option is to default since there is nothing to lose anymore. They know that BTCJam is going to close down and their reputation there hardly matters.
