bitlendingclub.com bitlendingclub.com allows scammers to steal my BTC. Internet

This is a response to the claims filed by the plaintiff.

Plaintiff Claim 1: I havce contacted support a number of times here.

BitLendingClub has received 3 support requests from the given plaintiff. We have responded to all 3 requests and we have not had any return communication in our support system from the user after we responded. Communications via the forum have all been answered (see Claim 3 below for links to the forum communications). Facebook communications were addressed: Facebook is not our support system and we can't possibly field support requests in the comment section. We have instructed the plaintiff to send us an e-mail to support, but the plaintiff has not send us an e-mail. Attempts to resolve whether or not the plaintiff is sending e-mails to the correct e-mail address have remained unanswered.

Plaintiff Claim 2: Me and the other lender have just lost our hard earned bit coins. Here is the loan in question bitlendingclub.com/loan/browse/lid/4495/first-loan-testing-out-the-platform

As stated in the previous comment: BitLendingClub does not provide any guarantee in terms of the borrower's ability to pay back a loan, nor do we ever state that we would collect on bad debt. This is also explicitly stated in our FAQ: bitlendingclub.com/content/help

Plaintiff Claim 3: bit lending club refuse to start collection or repsond to any facebook postings or emails.

We have responded to the Facebook post and we have notified the user to e-mail us on our support system so we can properly follow up on the issue. However, the user has not sent us an e-mail address and we've asked the user to tell us which e-mail address he's sending e-mails to have remained unanswered. The support e-mail address is: support@bitlendingclub.com
In addition, the user can also use the Contact Us form: bitlendingclub.com/contact-us

Communication with the user has not stopped through our forum either. We have answered all of the questions posted by the user:
forum.bitlendingclub.com/index.php?threads/im-thinking-these-borrowers-took-the-bitcoin-and-ran.237/page-2

forum.bitlendingclub.com/index.php?threads/take-my-bit-coins-and-run-or-honestly-late-how-do-u-tell.268/

Plaintiff Claim 4: it appears they allow any body to just not pay a loan and will not seek legal action as agrred in terms.

This is an inaccurate claim. BitLendingClub has never stated or implied in any of our Terms And Conditions, anywhere else on the website, or in any other means of communication that we would seek legal action against a borrower who defaults. The lender is expecting us to do something which we never advertised, agreed or implied we would do.

Plaintiff Claim 5: i dont understand the whole ordeal and i dont want to misslead any body i am just having a hard time with them not starting collection.

The lender seems to be under the impression that BLC is responsible for collection. This is simply not the case, it was never implied and we have strictly stated otherwise in our FAQ. This is the first lender which complains that BLC is not collecting on defaults and we have over 700 lenders who understand how the system work and have never complained about it. The lenders take their own risk when they're investing in a loan.

Plaintiff Claim 6: They do not charge a late fee for my funds being tied up there shold be a late fee charged every other lending site charges one.

There is a specific reason why we don't charge a late fee and we've already addressed in our discussion with the user: http://forum.bitlendingclub.com/index.php?threads/im-thinking-these-borrowers-took-the-bitcoin-and-ran.237/#post-1744
The reason is that our experience, and that of the majority of investors in the platform, is that charging a late fee is detrimental to unsecured lending model. If a borrower is in default, then adding a late fee will not motivate them to pay off a loan. Furthermore, if the regular payment can't be collected, then collecting a late fee can't be collected either. The end result is that the late fee becomes unnecessary.

Plaintiff Claim 7: This is realy unfair to us investers.  my user id is fred96002001 here see how much i lost with the apr is over 0.05 bit coins.

As the user has lost 0.05 BTC, which at the current exchange rate is about $20 USD. This is also the reason why we can't possibly collect: there is no collection agency that will agree to collect on a $20 investment. It is neither feasible nor reasonable to expect BitLendingClub to collect on such investments. This is also the reason why BitLendingClub has always left the collection up to the lenders.

The plaintiff has raised the following issues:

Plaintiff Claim 1: "it appears that bitlendingclub.com is not going to take no action from what i understand."

BitLendingClub is a P2P crowd-lending platform. Loans on our platform are inherently unsecured, we do not offer any guarantees when it comes to repayment and we do not conduct collection on bad loans. Our platform merely allows borrower and lenders to meet and enter into debt agreements. The lenders evaluate the risk associated with each loan and they perform their own due diligence as to the creditworthiness of the borrower. Should there be a default, the lenders are responsible for arranging collection on the loan. This is explicitly stated in our FAQ: https://bitlendingclub.com/content/help

Plaintiff Claim 2: "I got a response in the forms from the site admin and did not care for his response. so i have placed this report here for the public to see."

As the lender has stated, we have addressed his question in our public forum. Multiple other lenders have also commented and pointed out that BLC has neither promised or implied that we would collect on defaults. Despite our immediate response to lender's complaints, he clearly states that our response was not something he cares for. This puts us in a position where we can't actually help the lender, despite our best efforts. Here is a link to the discussion in our forum: http://forum.bitlendingclub.com/index.php?threads/im-thinking-these-borrowers-took-the-bitcoin-and-ran.237/

Plaintiff Claim 3: "dont lend out here you will lose your money and there is nothing they will do about it from my understanding i might be wrong but this is how i udnerstand it."

Despite the customer's claims, BitLendingClub has the highest repayment rate in the industry of unsecured peer-to-peer Bitcoin loans: 96% of the loans on our platform are repaid. The reason which allows us to achieve such a high repayment rate is that we focus on prevention, rather than collection. Here is our fraud prevention forum section: http://forum.bitlendingclub.com/index.php?forums/fraud-prevention/

BitLendingClub policies:

1. BLC is the only P2P Bitcoin lending platform that collects its fees upon loan repayment, rather than at the loan closing.

We do not make any money on default loans, this is specifically so we can align our incentives for prevention with that of the lenders. In contrast, competing platforms will often collect a loan closing fee, despite facilitating unsecured lending too.

2. BitLenidngClub does not offer any collection services, nor does it vouch for the borrower's ability to repay a loan.

Collection are something that the lenders must perform on their own. We always assist the lenders within the legal framework and we provide them with sufficient information to perform collections.

3. Whenever we find any suspicious activity, or if the lenders give us a warning, then we always do our best to investigate the situation.

We have dedicated a special Fraud Prevention section in our forum which deals specifically with fraud claims. If we determine that there the fraud is preventable, then we always take action. The action rangers from warning the investors of potential issues, to actually banning borrowers who are known scammers.

4. We encourage all of our lenders to follow the guide to investing and perform their own due diligence.

We have used our experience, and that of the veteran investors on our platform, in order to provide a detailed guide to investors. The guide aims to reduce the risk of default and it aims to help lenders run through a due diligence checklist. In this case, the lender did not follow the steps we've outlined in our guide to investors: http://forum.bitlendingclub.com/index.php?threads/investors-guide-to-the-galaxy.87/

While the guide does lower the risk of default, it still doesn't eliminate it. There is always a risk of default, which is why BitLendingClub has never implied or expressed any promise of repayment/collection of debt.

BitLendingClub customer feedback:

All of our customers are welcome to provide us feedback directly on our support system by e-mailing us: support@bitlendingclub.com
We have dedicated support members which answer all of our customer's question and this is the first public complaint we've ever had to deal with, despite facilitating the funding over 2050 loans worth about 3400 BTC (or about $1.3 million USD at the current exchange rate).

1. Stu Lustman's detailed review of BitLendingClub has led him to conclude that we are the best platform in the industry: http://p2plendingexpert.com/bitlending-club-where-the-players-in-bitcoin-lend-and-borrow/

2. A number of our customers have shared all of the reasons why they joined BitLEndingClub: http://forum.bitlendingclub.com/index.php?threads/what-are-your-reasons-for-joining-bitlendingclub.55/

Sincerely,

The BitLendingClub Team

support e-mail: support@bitlendingclub.com

web: http://bitlendingclub.com

contact us: https://bitlendingclub.com/contact-us

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