Topic: BitLendingClub - page 2. (Read 9682 times)

Overall how would you compare BTCJam to LBC? Or others (which one)?

Currently I'm only on jam. Should I also consider LBC?

rating system is as bad as jam .  miss one payment and you are an E1 rating

I've seem to have bad choices with regards to loans I invest in these days, most of the name in my calendar looks red.

Is it just me?

There is a lot of room for improvement in terms of making lending more automated and increasing the speed of funding loans. The credit rating system was recently improved, we are extremely transparent about the performance and everybody can take a look at how good/bad it's working on our statistics page: https://bitlendingclub.com/stats

Here is the default rate by credit rating:


We always welcome the community's feedback and we're constantly working to deliver the best product on the market.

BLC is a good lending platform but very slow at getting funded .  and everything is set to manual . thats the only downside .  and they also have a horrible rating system .

Hi Guys,
I wanted to update you on our efforts to lower defaults and to get a better credit rating system in place. We released new underwriting rules in the beginning of March and it's already had an amazing impact: we've brought down the default rate by over 50% (from 16.97% to 7.9%)!


It's quite reasonable to suggest that 2 months is not sufficient to determine the default rate, but please note that we count late loans as default. So 100% of the loans reach maturity within 30 days: the average loan term is 30 days and the maximum payment frequency is 30 days.

Furthermore, we've released a new credit rating system and it's performing quite well. You can see the detailed statistics on the defaults per loan grade and a number of other statistics on our stats page: https://bitlendingclub.com/stats

Best Regards,
Kiril Gantchev
CEO of BitLendingClub
Twitter: @kgantchev

Connect with us:
Twitter: @BitLendingClub
Facebook: https://www.facebook.com/bitlendingclub
Google+: https://plus.google.com/+BitLendingClub

https://bitlendingclub.com/loan/browse/lid/11242/buying-scrypt-miners



this is a scammer so beware

Wow, i see a person in bitlending stacking a loans of 20btc. It seems pretty fishy to me

What types of collateral are we talking about? We've looked into various collateral options, but we didn't find anything that works particularly well here.

Are there any plans of introducing collateral loans? Some other services are about to implement this.

The particular user provided an Ireland Age Card, which is a valid form of ID in Ireland. This is also the reason is why the document has no expiration date and the card number is short, compared to what a DL number would be. Here is a sample of what the Ireland Age Card looks like:



Please note that we have one group for ID/Driver's License and we accept both types of documents: when we issue the notice of default the document type is ID/Driver's License. I think you're right that we could do better, but we certainly try to do our best to protect the lenders. There is no way we can have a sustainable business if we don't do that, as we don't make any money from people that default. In addition, we didn't misrepresent our service: it's quite difficult to build a peer-to-peer lending platform which services people from every single country in the world. The fact that you lost money means that we lost money, so in no way are we indifferent to the loss. It's a process which takes time and we know that we'll incur loss, until we get all the tools in place. We're also using Jumio as an ID verification service, which adds additional safeguards against users who attempt to defraud the system.

With regards to your negative rating on our profile: I understand your position, I simply would like to point out that we didn't make money from your loss. On the contrary, we lost revenue and resources (which cost us money) in order to service those loans. Again, I apologize you had such a bad experience and we'll continue to work on improving our platform.

I've been using this service for a month now and am 100% satisfied.  Strictly as a lender.  Only 1 loan was late with a payment and only by 2 days.  You just have to be smart about who u lend to.  Fully verified and high rep score.  And do micro loans so u don't get burned bad if one does default.  I also like to fund loans that are already 100% funded and undercut somebody's interest rate.

Quick response and satisfactory solution.
It's all right now. Thank You

Hi, please keep communicating with support, they will guide you through the process.

Your support people are funny.

I upload a scan of my last phone bill for adress verification.
your support comment: "Screenshots are not acceptable."

lol? 

How shall I bring the bill else on my computer? Take a picture with my phone?
For what i own a scanner? 

Otherwise, all my data is verified. Have also uploaded my ID.
My address is on it. Also on the bill.

This is a bit confusing and slightly annoying.

Our default notices now contain all of the information which was missing in yours. The reason is that we currently ask the user to enter that information and our support staff verifies it against the documents they've submitted, this is automatically populated in the notice of default. At the time your borrowers filled out the loans, they didn't have to enter that information manually. We do have the IDs and the other verification documents of the lender, so if you send us an e-mail at support we will manually issue the missing information: [email protected]

There are legal restrictions for storing and disseminating people's documents. We collect the information in order to guarantee that people don't create multiple accounts, they are who they say they are, and so we can populate the notice of default, whenever one arises.
That's ultimately the goal, we would like to get there and we've been trying to see if we can aid the collection of a couple of loans. However, going after the borrowers is quite expensive, so it generally makes more sense to focus on prevention in the short term and collection in the long term. One of the changes we're making is to change the income requirements. Up until now we allowed people with 0 income to get loans, this was because many in the Bitcoin community were miners, sellers on local bitcoins or people undertaking speculative ventures in order to cover the high interest rates. That's about to change very soon, we're now going to be more strict with the income verification and we'll be increasing the quality of borrowers on our platform.

I should note that when I said "personal information" I mean that we wouldn't be sending out a copy of the verification documents. We will still send the notice of default, which have all of the information which was provided by the borrower and verified by our support staff. So dispute resolutions should be done with the notices of default. I'm going to explain what we're doing in order to help with that too (see below).

As I said earlier, the documents are automatically generated from fields which are filled out by the borrowers. The information is available on the verification documents submitted, but we have't gone back and manually entered the information so we can re-generate the notices of default. You can contact support and we'll do that on a case by case basis, until we're done with the manual data entry. All of the information is available to us, it's just a matter of time before we can go through all of the documents and perform the data entry.

Given that we have a total of 10 people working for our company, including myself, it's going to be pretty difficult for us to do that too. I've already contacted several collection agencies, but they don't seem to be interested in collecting such small amounts. I'm still looking for a collection agency that can help us, at least within the US. We've also taken a couple of loans which borrowers have defaulted on and we've contacted the lenders: we asked if any of them could take point in the collection process, given that they're geographically close enough to the borrower. Out of nearly 140 lenders contacted, only a couple expressed interest in taking point and they were quite far from the borrower. They weren't able to follow through in getting a sheriff to serve the court papers, going to court, waiting for a judgement, filing for wage garnishment/property lien, and keeping everybody up to date.

While I understand your concern, there is very little chance that we can realistically do that. If that was the case, then you would see massive discrepancies:

• The majority of the information provided by the borrowers will not match the social connections, trusted connections and public communications.
• We would have to find fake/stolen IDs, which we pass onto Jumio (since we verify the documents both manually and through Jumio).
• We would have to acquire a large number of phone numbers, from multiple countries (I don't even know how one would do that).
• We would have to acquire a large number of social profiles and matching accounts from Amazon, eBay, PayPal, LocalBitcoins etc.
• Our company of 10 will be tasked with managing and maintaining fake communications for over 900 profiles (this is the number of verified customers we have).
• When we release the notice of default, the information would not match any of the factors above.

And that's just for starters... if this is a real concern with BitLendingClub, then I guess that's a concern that would exist with any lending marketplace, even with Lending Club and Prosper. However, a company that is legally registered and has VC backing is not going to take a risk of defrauding its customers or investors. I would be liable if I or any of my staff lied to investors and customers. And trust me, we've dealt with so many lawyers and signed so much paperwork in the past year, that it would make very little sense for us to even think about taking that kind of risk. BitLendingClub is a registered business in the state of Illinois, we also have LAUNCHub invested in us and we're now a part of Boost VC's accelerator program (founded by Adam Draper). The long-term potential for growth within our company greatly outweighs the potential for short-term from scamming people.

We saw a problem, which was the need to have a lending marketplace for Bitcoin and we built the platform. I've personally invested well over $200K in building this site and I'm quite far from getting a return on my investment. However, I understand that if I want to recoup any of my $200K+, our website would have to turn profit for the lenders. We can't possibly guarantee returns, because that would simply be a lie, so we've been doing everything we can to improve our platform. Quite frankly, it's not as easy as it looks, but we do make a concentrated effort to work with the lenders as much as we can. We have limited resources, so we have to rely on the community a lot more than we'd like to.
Our new filters allow you to inspect all of the loans.

If you filers for loans which are late and default, you will see that there are about 322 of them (USD and BTC): https://bitlendingclub.com/loan/index/filters/1/filterName//statuses/2/amount/0.00000000%3B0.00000000/reputation/-2000%3B2000/timeLeft/0%3B0/paymentStatuses/2%2C3/btc/true/usd/true/invested/true/notInvested/true/funded/0%3B0/ratio/0%3B0/perPage/250/show_filter/

If you filter for loans which are funded or repaid, you will see that there are over 4000 (USD and BTC): https://bitlendingclub.com/loan/index/filters/1/filterName//statuses/2%2C3/amount/0.00000000%3B0.00000000/reputation/-2000%3B2000/timeLeft/0%3B0/paymentStatuses/1%2C4/btc/true/usd/true/invested/true/notInvested/true/funded/0%3B0/ratio/0%3B0/perPage/100/show_filter/

Ah sorry, since 2013 there is also an expiration date on Austrian driving licenses. Mine is a few years older without expiration date. It's valid till I'm not clearly identifiable on the picture or year 2033 as a maximum. Now we have 15 years.
To sum this up: There are still a lot of people out there without expiration date on their driving license.

Also according to Wikipedia EU Drivers Licenses are either 10 or 15 years depending on the issuing country; and must be renewed for all classes. Class C and above require a medical exam pass before renewing.

Images confirm this as well.

Well I googled Ireland Driving License - EU - and a number of images came up - they all look like this. Appears to me there is an expiration date. 2022. Unless the 2022 is simply something else?

The images online also have 8 digit codes next to the expiration date. And an alpha numeric code as well which is longer. 6 digits... that only allows for 1 million licenses. Not possible.

EU driving licences have no expiration date. It's always funny watching US police officers looking for it.
Not sure about the license number, Austrian driving licenses have 8 digits for example. Maybe Irish licences have 6 digits only, I don't know.
Country of issue is clearly visible in the upper right corner on every EU driving license + district authority in the middle.