If a loan is not paid on the scheduled repayment date, our recovery team will begin its attempt to recover the loan. We deploy a manual and auto-check process that is currently performing 5x better (best in class) than standard recovery providers. During the recovery time period, if the loan is recovered during the 1st 35 days post loan funding, the lender will receive all funds associated with the loan. SoLo has waived our standard recovery fee during this time.

On the 35th day post loan funding, a late fee will be assessed. The late fee payable to you, the Lender, is 10% of the principle. If the loan is recovered 35 days after the funded date, a 20% recovery fee, payable to SoLo, will be assessed. The 20% is based on the loan principal. For existing loans, prior to June 25,2021, loans that were repaid 8 days after the scheduled due date will assess the recovery fee. 

If our recovery team is not successful in the first 90 days of the loan being delinquent, we will transfer the loan to our third-party collections partner. Our collections partner takes a 30% cut of whatever funds they are able to collect. At this point, the borrower will also be banned from using SoLo in the future and they may be reported to the major credit bureaus with a derogatory mark, which would negatively impact their credit score for the next 7 years.