Analyze personal and P2P lending terms for origination fee stacking, prepayment penalties, default definitions, and debt sale provisions.
Built by Sergei Tokmakov, California-licensed attorney.
Online lenders have aggressive fee structures and default triggers. These provisions have trapped borrowers in debt cycles they didn't anticipate.
Origination fees (1-8% of loan) are deducted upfront, meaning you receive less than the loan amount but pay interest on the full amount.
Some loans charge penalties for early payoff, or front-load interest so early payments don't reduce principal significantly.
Hard credit pulls happen at application, affecting your score before you even accept the loan. Multiple applications compound the damage.
Your loan can be sold to aggressive debt collectors, who may sue for the full balance plus legal fees if you fall behind.
Default can be triggered by a single missed payment, making the entire balance due immediately. Cross-default provisions can trigger default on other debts.
Your financial data, including bank account transactions, may be shared with marketing partners or used for credit model development.
Common terms in P2P lending agreements affecting borrower rights.
Disputes resolved through arbitration.
Cannot join group lawsuits.
Fees for missed or late payments.
Payment history reported to bureaus.
Variable vs. fixed rate terms.
Cosigner obligations and release options.
Ongoing income verification requirements.
Legal remedies for non-payment.
Paste loan agreement terms below to identify potentially problematic clauses.
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