although I like to charge a really high interest rate on scammers/low rep to discourage scamming like behaviour
This makes no sense. Legitimate users are generally not willing to pay high interest rates, but scammers always are, since they don't intend to return the funds.
Ok.It was just an idea I had.Thanks to the feedback guys,I'm willing to drop that idea as it seems to cause more pain for good users than the scammers.I think a deposit for collatoral would make more sense though. Thanks for the feedback mcorlett and johnthedong. This is why I come here.I share a possible way to tackle problems and I get feedback that is helpful and lets me understand the wider impact of what I want to do. I do tend to charge an interst rate based on rep generally (but not the really high rate idea I proposed earlier as that seems unfair now).Higher rep=lower interest rates due to confidence on getting repaid.This is also based on how much is borrowed as well so both factors are taken into account with my interest rates.