Doesn't BTCjam use net-arb? Or are those for bigger loans?
BTCJam takes all your documents and never releases them, even to arbitration.
Plus the lender has to pay for the arbitration process ($300 IIRC) of which they'll probably never see again either.
BTCJam know this, they've known this for a very long time. They just don't care because they get their cut.
I think your info on BTCjam is a bit outdated.
Btcjam releases all the info they have on the borrower to the lender, if the borrower defaults, 90 days after the loan should have been paid(at least thats what they say).
BTCjam should use arbitrage for all loans after the 30 mars i think it was if they defaults and BTCjam pays the cost for arbitrage, seems like BTCjam is a bit late in that process thou as it was very recently people started to get arbitrage info on defaulted loans.
I take for granted that BTCjam also have to do the following up at the borrowers country in cases where people refuses to pay after arbitrage has been done as it would be very cost inefficient if maby 20-30 lenders had to apply seperately.