To mitigate late or delinquent payments, we take the following measures:
- The identity of each borrower is verified when they request a loan
- Borrower's need to have at least one bank account connected to their Lenmo account at all times from which we automatically withdraw owed payments
In the event of a late payment, the borrower will be charged $12 late payment fee one day after the due date. The late payment fee includes $6 to be paid to the investor plus $6 loan admin fee will be paid to Lenmo. We will attempt to withdraw the owed amount every day for 7 days. If a payment is not received within 7 days, we will send the owed payment to collections on the investor's behalf where they will be able to collect most of it. Payments for the balance of the loan will resume.
Like many other investments, we understand that there is an element of risk involved with lending money to someone which is why we provide the borrower's credit report to help investors make an informed decision based on their comfort level.