Bitcoin Forum

Bonjour ! :o
So I was really wondering how exactly websites like BTCJam or any other Peer to Peer Lending platforms protect their users ( People who lend)
Because ... Let's say I gave some money (some big amounts) to someone and he is ID verified & Paypal & Social Media & Bank account verified and all those informations . and at the end he scammed me ?
What BTCJam could do about it ? I don't personally think they will do anything about it since they aren't that big as a company maybe they can do something if user is on Canada , US , UK or something but what if he is somewhere else ?? the idea of giving money and don't see it once again scares me to be honest . also will they refund users ?

This i what your looking for was searching this myself earlier : http://blog.btcjam.com/2014/03/04/what-happens-when-a-borrower-does-not-pay-back-his/

Thank you for the link , it's pretty useful .
However I can't seem to understand what those Arbitration companies do exactly ? and what if after the Arbitration the user Deny or refuse to re-pay what would happen ? Also all countries have those Arbitration stuff ? :o

This is interesting, what I would like to know is how many people who defaulted on their loan were made to pay with this? I don't think it would be as easy as they say it is because I have seen a few threads on this forum and elsewhere where investors money was lost for good and nothing was done about it.

My advice to you OP is if you're lending a money which is non-reversible it's better if you only give out collateral loans, so if something happens and the borrower decides to not pay you could atleast get some of it back through that.

Btcjam doesn't really protect you.  The netarb (best case scenario) will just allow you to receive personal information of the borrower - such as home address and full name and phone number.  I got scammed on btcjam a year and a half ago and the net arb didn't do shit :-/

Hmmm .. Im sorry to hear about your bad experience also thanks for letting me know .
I don't see what they expect us to do when we receive personal information of the borrower .. Should I call the Interpol if he is Alaska and I'am in Singapore ?  :-\
I will leave the thread open maybe some people will discuss their experiences with BTCJam . ty once again monbux

I have thrown some money in to BTCJAM. I see it as high risk.
I was looking for something else to do with my bitcoins and thought why not. I spread out a pretty paltry sum over 8 loans. If I get zero back then it isn't the end of the world.

If the borrowers are scammers I wouldn't expect much the way in assistance from BTCJAM, but perhaps I will get the opportunity to report on my experience in a few months.

They don't give refund, its basically the lender risking of his money to get little returns.. Also the netarb they don't do anything its up to the lender if he is going to pursuit the defaulter.. all in all don't use btcjam, its not worth it..

basically they only works as an intermediary, and not even as an escrow, it's like they are saying, "we offer you our platform, but everything else is at your own risk"

without a trusted third escrow party and without any collateral, any loan should not be done, and it is pointless, because there will be high chance of scamming, actually there is no reason(if not the common sense) for those who request the loan, to not scam you, with those premise

better to avoid it completely

they don't protect their users. I recommend to not use this site.