Modified option to crazy loans

I'm afraid I am confused. Are you saying that people who take predatory loans due to desperation or foolishness should be fined for doing so? Because it seems to me the better solution is don't give out stupid predatory loans and expect that to be enforced or for you to receive anything but your money back. The only loans being dissolved down to the point of only having their original capital back are loans that never had the business being offered or given and that no one giving them deserves interest for that mercenary behavior. If you put reasonable term and interest on the loans you give out, they'll just be paid back. Or at least when it comes to the user complaint and ban appeal your late fees agreed to be capped at will be enforced because the mods already enforce reasonable fines and so this is pointless to anyone who isn't giving out bad loans or forgetting to put penalty agreements in their loans.

 

Don't want to lose all your profit on a "risky" loan?

Don't charge exorbitant amounts of interest.

 

Now taking out a 100k loans with 10 mil payback for free loans.

 

I agree that lack of stupidity and common sense shouldn't be rewarded - The lender is also being stupid and lacking common sense for making a predatory loan (You're essentially asking to be scammed when making those, lol.) - So why should we reward them too?

The current system works fine - The borrower still has to pay back the money he got from the loan, instead of paying nothing, while the lender the initially lent money back, instead of getting the money with interest. Sounds like we're not rewarding stupidity to me.

 

If they have agreed late fee's, i dont see a problem with them tagging on the late fee's

For example, Player A Loans Player B 100k with 700k payback in 2 weeks(which is ridiculous like we said) but then they say 5k a day late fee's for 10 days,
If the player is late 10 days, he should still have to pay the late fee's surely? Yes he wont have to be liable for the 700k, but he is still liable for being late if he cannot pay the money back straight away?

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To all the people who are also saying the player loaning money shouldnt be so greedy for making such a silly contract.
A. They might have also done a typoc and not noticed it until all screenshots were taken and money transferred.
B. Go tell your local bank that their interest rates are to high? What will they say? "go look for a loan elsewhere"


The loanee isn't always the only innocent party sometimes.

 

What if the late fees are 10k/hour for 2 weeks - Then what? No, it's pretty dumb to enforce late fees that are stupidly exorbitant. Most predatory loans include exorbitant late fees as well, and those late fees shouldn't be enforced for both the well-being of the lender and the borrower.

And no, it isn't really greedy to be making loans like that - It's more stupid than greedy. When you make a predatory loan, you're essentially asking to be scammed. As far as typos go, you can easily correct yourself throughout the two stages - Both payment and agreement - I rarely see players ever making typos in both stages. And even if it is a typo, you're still getting your money back. As far as your "local bank" analogy goes, it's quite funny that you bring real-life into this; In real life we have Usury Laws which are exactly meant to stop predatory loans (https://en.m.wikipedia.org/wiki/Usury) - Even in Britain, where Usury Laws were abolished in the 19th Century, regulators are starting to crack down on predatory lending (http://www.ft.com/cms/s/0/141899d6-dcf6-11e3-ba13-00144feabdc0.html#axzz3z7Ykheux).

Both parties are at fault here - The lender for being stupid enough to make a loan like this, and the borrower for being stupid enough to agree to a loan like this. And in the current system, nobody gets rewarded. And that works just fine.

 

And? You said we shouldn't be awarding players for lack of common sense and stupidity, and that's what we're doing with both the lender and the borrower. The lender still gets his money back, and the borrower still has to pay back the initial amount of money lent.

 

You're stupid for essentially asking to be scammed. In the end it works out for neither of you - The borrower gets into large amount of debt and quits and the Lender never sees his money again. Lose-Lose.

 

When banks charge absurd amounts of interest they may violate usury laws... and if that happens they can be subject to an assortment of penalties, including forfeiting interest.

So... yes.

 

If you do a contract on the forum, you are not allowed to have open ended late fee's and thy are capped at a certain amount.
I don't see why this cannot be the same for in game contracts.
There would be a cap on the late fee's, they wouldnt be open ended as they are not open ended anyway, so your points are invalid.

 

I said 10k/hour for 2 weeks... .-.

That's not open ended.

 

10k and hour would then be capped before it goes on for two weeks,

Late fee's are not capped by the amount of weeks pass, but how much money it totals.

So it would be well capped before it even hits a week.

 

We're blaming both though - The borrower still has to pay back the money, and the lender gets no interest or late fees on the loan. Both are being blamed, and neither benefits.

 

I don't see any rule stating how much late fees can be capped.