BTT account collateral: When should an account be red tagged?

[CryptopreneurBrainboss]

This questions is as a result of this thread, I need an answer from experience members of forum for better clarification.

Before I go on to answer your question, first let me make you understand what the forum consider aa a collateral

What is considered collateral?

Collateral is something that can easily be resold to cover the loan value plus interest should the loaner default on the loan.

Therefore if you accept accounts as collateral you're encouraging account farming which the DT members frown at.  Accepting an account as collateral means you're attaching a price to that account which can be sold to cover up your loan value which is considered as account farming

Then another user responded with this,

You're making it sound like taking a BTT as collateral will cause you to instantly get red trusted. - Unless you have examples of this - i wouldn't say that this is the case.

Rather if you take an account as collateral, and the user does not pay back, and you then proceed to sell it, that's kind of flawed upon.

I'd say that, especially with high tier accounts, offering account (rather the reputation behind the account) does not instantly =/= Selling the account in the case of them not paying back their loan.

Here's my questions: If an account is used as a collateral when should it be red tagged?

1]: The moment it's was accepted as a collateral?
2]: should all three accounts involved in the transaction be red tagged for supporting account farming?
3]: Or after a lone default to prevent account selling?

I'll be grateful if explanations are added to your answers.

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[The Cryptovator]

Once upon a time people's use Bitcointalk account as collateral for loan when no one was tagging account sell. After starting tag to account sell most of lender are not accepting Bitcointalk account as collateral. Collateral a account is equal to account trading. If borrower never repay the lent amount then he will encourage to sell account. Then both account will get tag but its depend on DT. There is no any official rules.

Since  Bitcointalk allowed account sell (but highly discourage) all DT are not handling this kind of case. We have seen before someone was encourage account sell which was got by collateral. Then The Pharmacist had tagged the seller. But eventually The Pharmacist convinced to remove tag. You can read this thread to know more details : https://bitcointalk.org/index.php?topic=5037540.0  

So my opinion is, you can't recommend to tag account seller/collateral/traders due to forum allow account sell. Its depend on DT who will tag them or remove tag. Offering account as collateral is equal account trade. But personally I don't like this kind of account trade.

For your clarification, account sells are not subject to tag. It's only depend on DT and all DT are not tagging them.

[Lauda]

The problem is that there is a mini cartel-like-group within the lenders, which causes issues:
1) You can't force them to stop doing this.
2) You can tag them.
3) If you do 2), while there is a single lender in DT doing this you will receive fake retaliatory negative ratings.
It was due to this, that it was never possible to make any change in the way that lending is handled. The type of person that you'd likely encounter advocating for this to remain practice is someone who values their own profit over the greater good.

So my opinion is, you can't recommend to tag account seller/collateral/traders due to forum allow account sell.

That is absolute nonsense. Forum rules have nothing to do with this.

[The Cryptovator]

So my opinion is, you can't recommend to tag account seller/collateral/traders due to forum allow account sell.

That is absolute nonsense. Forum rules have nothing to do with this.

The rules it self is nonsense regarding account sell. Did you forgot the case ? The Pharmacist had got tag.

You can't force them to stop doing this.

Sound is similar of my sentence. But you didn't read other part. Tagging them its depend on DT. All DT are not tagging them. But most of DT don't like that kind of work. Even me, I have tagged lot of account seller but not all. I really hate account sell.

[Lauda]

-snip-
All DT are not tagging them.

This is because the greedy baboons fools would retaliate; I have more important things to do than starting a war against zazarb[1] & co.
[1] Who is trying to get back into the DT1 list using the 'I scratched your back, now scratch mine' method FYI.

[CryptopreneurBrainboss]

No offends guys but I haven't be clarified my questions haven't been answered. If you say an account used for collateral should be tagged for account farming when should the red tag be given? After lone default (to prevent account selling) or immediately it's offered as collateral   and should all accounts involved be tagged for account farming?

[Lauda]

No offends guys but I haven't be clarified my questions haven't been answered. If you say an account used for collateral should be tagged for account farming when should the red tag be given? After lone default (to prevent account selling) or immediately it's offered as collateral   and should all accounts involved be tagged for account farming?

Both the lender and the user should be immediately tagged.