Does BTCJam's arbitration system actually work?

[dude77]

Has anyone ever had a bad loan that went to arbitration and you actually got some money back?

[dude77]

That's pretty much what I figured.

I think it's stupid how BTCJam piles on a load of disincentives for people to pay back defaulted loans, like the additional .5btc penalty and so forth. I'm looking forward to someone making a better loan exchange that creates incentives for people to make partial payments. They should be able to buy back positive rep rather than being instantly marked for life as scammers. As it is they really have no reason to pay back a loan that's even a day late. They may as well run off with all the coins.