Thank you for this post. I invested in some Bitbond loans and am very disappointed in the results. About half of them have defaulted or are very late in paying, apparently on the way to default status. It's a nice idea that just doesn't work, IMHO.
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Ugh really sorry to hear that. I agree, it's a nice idea that just doesn't work well at the moment. There could be a case for doing it within-country since courts here would be more inclined to enforce property rights and the lending platforms could ding credit scores for default. Going across country is just too difficult at the moment to keep fraud down, let alone the natural default rates.
Yes, and while the defaulted loans have been handed over to an international collection agency, who knows how much power they actually have to recover the funds? (Except to hound them to death.) It was an expensive lesson for me but hopefully others will benefit by being forewarned.
Unfortunately, i'd guess that in many countries collections agencies have little power; it all depends on the degree of property rights. It also depends on the size of the loans; there's def some min threshold under which it takes more resources to collect than are expected on average to return.