Bitcoin Forum

What happens, if someone still doesn’t pay me back?

If a borrower misses one of his payment for the first time, we try to get in contact with him in various ways. If we get a hold of him and he manages to pay back with a slight delay, we will accept the late payment with a processing fee and return the money to immediately.
If a borrower does not respond to us within 90 days, we start the arbitration process.


Has anyone ever been trought the arbitration process? If so, did the person who default got sued? Did investors get their money back? I'm just curious to see and learn more about BTCjam, what if someone steals identity documents to obtain a loan, and when you contact the person trought arbitration process they claim they know nothing about it?.

Any experts out there who might be able to answer these questions? :)

Thanks!

I really don't think that anyone will actually bother to sue them, since tracking them down and suing them would require more funds than the ones lent.

I'm still in the process of the netarb, they contacted me in January and said an arbitration will start in a week or so... still never got any updates.  I believe they provide you with the borrower's info.

Ahh i see, what info do they provide you with?

This is going to be a problem for BTCjam I have a feeling due to the privacy statement. First person to figure this out will just sue BTCjam for a breach of privacy on the TOS.
Prosper recently got sued for what BTCjam is doing now, offering loans that they "vetted and graded" but the default rate was SUPER HIGH. After that prosper went to the min credit score "Graded by major credit agency's", so I guess if someone really wanted to they could sue the pants off BTCjam.

They provided me with nothing, but I believe after a successful net-arb, they provide you with the basic info of the borrower, like name, address, phone number, that typical stuff.  I believe they also provide you with some pictures.  I'm not sure as for I have not yet received any info, but I'll update if I ever do (if I remember).

So if you start the arbitration process, every individual lender has to start it themselves in order to retrieve the money? Or if 1 person starts they start it for everyone?:)

I know that I did not start it, but BTCjam has messaged me saying that the process will soon start...  So I'm guessing not everyone has to file for a net-arb claim.

Once a loan has been defaulted for 90 days, it is automatically sent for arbitration. After many days, you get something like this:
https://i.imgur.com/btLY6UD.png

Ok i see, so do people actually manage to get their money back trought arbitration process? Because i think it wouldn't be worth it lol

No, you don't. All you can do is use this information and try and sue them, but I'm not even going to bother, look at the money I loaned and lost. The fees for court and all that is much more than what I lost.

Yeah true, might be worth it if its 1btc:)

Are you sure you have to sue them?  In Canada at least this net-arb award can be used to directly garnish their bank account with no additional court process.

At least that's what the BTCJam guys told me. You mean that in canada I can hand the arbitration award to the bank and they will deduct 1.2 USD from his account?

That would be a joke lol

bitpop won 3 arbs, but now he doesn't know how to collect. He is selling those coins from arb at lower than their face value. So once you win, that's only the first step, actually getting the coins back is a lot harder. Lots of hassle with the legal and court side of things.

But in the end its not really worth it is it ?

If the amount won in arb is small, then it's not worth it. Sometimes the legal fees would exceed the amount that you won. In the case of bitpop, the 3 borrowers that defaulted were located in the US, and he was in Canada I believe. It's much harder to pursue someone by legal means if you're not in the same country.

All arbitration does is give you personal info of the borrower once the loan defaults, and sometimes this doesn't do a thing. You might as well use the money you would have spent in court fees to just hire a hitman instead. At least the outcome would have been more satisfying  ;)

yes i know what you mean :) but lets say if 1 investor invested 0.3btc, and proceeded with arbitration and got his 0.3btc back.  Does every investor have to do this, or if 1 investor proceeds with arbitration they proceed on behalf of everyone?.

P.S humans life is worth 100,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 $$$$ it's not worth killing someone over 20cents HAHA::D:D

The technical stuff on btcjam I'm not sure about, so you'll have to wait until a regular user chimes in. I stay away from that place, just because there's no real form of collateral offered.

Some human life aren't worth anything. Even negative value. A great example is Dank.

Dank asks for loans saying he's going to be homeless, but somehow every night someone pops into the hotel to pay for another night. He's a joke, haha biggest troll on bitcointalk that has ever lived lol

scammers bad people why play and hurt trust
bad for the world

Nonsense from a pratical overview.
Human life's worth may range from a few cents to hundred of thousands. The point is that killing him won't pay the debtor unless he decides to harvest his organs and sell them to black market. Rather nasty.

About the arbitration I'm pretty sure you can charge legal interests + legal/collecting fees + eventual goods devaluation. IF the debtor has means to repay and/or property to attack don't settle for the arbitration note and hit harder.
What you can't charge to the debtor is the price of your lawyer... unless it is mandatory by law that you use one just don't.

For example here in Italy you don't need one when you go to the small claims court.