What happens when a loan goes to collections?
During the first 90 days before we send an account to our collections partner, SoLo will make debit attempts and send communication to the borrower informing them of the money owed. If payment is not received within 90 days of the due date, the account will automatically be assigned to our collections partner.
Once a loan is sent to collections, the Borrower has the option to pay in-app or directly to our collections vendor.
When payment is received our collections partner will keep 30% as their fee and SoLo will pass along the remaining 70% to the Lender, if applicable.
If you have any further questions about the collections process, please contact our support team.
Related Articles
What happens after collections?
Our collections partner attempts to recover your funds for up to 4 years via phone calls and letters sent to the Borrower’s home. The loan is considered defaulted after 90 days, at which point the Borrower may be reported to the credit bureaus with a ...
Can I borrow if I’ve been in collections before?
Unfortunately, if you have been sent to collections due to failed repayment on any loan, regardless if the loan has been paid back or not, you are no longer eligible to use the SoLo app. Here at SoLo, we are looking to build a thriving and respectful ...
As a lender, will I be contacted if a borrower is sent to collections?
Yes, you will receive an email informing you that a loan you funded is going to collections. If our internal collections team or our collections partner is successful in collecting the debt that is owed to you, SoLo will transfer the funds ...
Will the Borrower be able to take out another loan on the SoLo app if they still owe?
No. All Borrowers will be suspended from using the SoLo app until their loan is repaid. If the loan is sent to our collections partner, the Borrower will not be able to return to the SoLo app. Here at SoLo, we are looking to build a thriving and ...
What happens if a borrower doesn’t repay on time?
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. ...