I am not sure what you would expect to achieve by filing a police report regarding a defaulted loan. It is not illegal to not repay a loan. You will not be arrested if you fail to repay a loan, nor would you face any criminal action against you.
Sorry if it appears that I'm trolling here, I just like to clear up facts when I see them misrepresented, or if I don't fully understand what I am reading. AFAIK, You can be charged with theft if you don't pay back a loan if your intent was to never pay any of it back. The tricky part is proving intent, and most of the time, the people in default have paid some money back which moves it from a criminal charge to a civil dispute. Also if there is collateral, the creditor or debt collector would make out better collecting the collateral instead of pursuing criminal charges. I have some experience with this.
This is not true. If you give a lender fraudulent documentation that was relied upon to make the loan (like forged paystubs or bank statements) then you could potentially be charged with fraud, but it is very difficult to get probable cause to even look into this. If the borrower does not intend to repay the debt then nothing criminally can happen to him, there is no law that says this.
If you tell a person's friends/family about a person not paying you money that is owed to you, then you would be violating the FDCPA in the US which would open yourself up to potential 6 figure civil liability for willful violations.
only if the plaintiff can convince the court that you are a debt collector. There is some interpretation gray area here unless you have set up a business specifically to lend.
again not true. There is no requirement in that you are in business to lend (or to collect debt) only that you are collecting on money owed (or allegedly owed).
Also a record on the blockchain would not prove anything as a person's identity is not linked to specific addresses, nor would you be able to prove non-payment via the blockchain.
+1
ty
The most common reason people ask for identification on sites like this is to be able to open a bank account in their name or take out a loan in their name. There are skip tracing services that can potentially find a person's social security number based on their name and address (identification number on an ID would also increase the chances of finding it). Also one verification method on BTCJam is to provide your ID so you would be able to take out a loan in their name if you have a copy of their ID.
I recall a Wired mag article where the writer paid a Russian web site $6 to get his own social security number using his name and address. It took him less than 15 minutes from search to payment to SS#. That's seems a lot more efficient than lending to Peter to get fake credit with Paul. Are there actual occurrences of this, or is it just a theory? Seems to me that you can't get much with a name and a picture of a face with a specific forum username.
Again, I only post this so I can learn to protect myself and possibly others in the process.
Generally speaking in order for a SS# to be useful you would need identification of the person. I would think that ID plus their SS# could potentially be more valuable then just a SS#, likely both on the black market (I am not sure what either just SS# or both SS# and ID sell for on the black market, but I imagine that the two together would be worth more) or if he were to try to take out a loan in his name. In the US skip tracing companies generally will only provide the SS# of someone to a law firm or someone who can prove that they need to know this information (to report to a credit reporting agency for example, or to issue a tax form).
I am not sure how often this happens for purposes of stealing someone's identity, but it is pretty common to use skip tracing services to get the SSN for legit purposes.
