Loan Balance with Closed Banks

[DezNutz]

I think this is worthy of discussion.

Situation:
Player X has a loan with Bank ABC.
Bank ABC closes.
Player X still has an outstanding loan balance but cannot repay the loan automatically or through manual means.


Question of Discussion:
What should happen to the loan when a bank closes?


My Opinion:
There are two viable options in my opinion. But I've added a 3rd for those that don't like the reality of the situation.


1) The Bank owner is forced to write off the loan as a loss, thus closing the account. The account holder is cleared of the loan and any remaining repayments.

2) The Bank owner can sell the loan to another bank or nation. Sale of loan can only be for the remaining loan principal. New loan owner receives all payments and interest.

3) The player can still continue payments until loan is paid off. (Don't like this option, as it gives players the ability close their banks but still collect on loans they made to players.)

Edit - Added 3rd option

[Grimrock Litless]

This is not a big thing, when a bank closes, loans pauses until it reopens. And option one is extremely retarded.

[DezNutz]

This is not a big thing, when a bank closes, loans pauses until it reopens. And option one is extremely retarded.

No it isn't retarded, and this coming from the guy who has made some of the worst suggestions. Back on topic. If I run a business and have payments due to me and I close my business, those payments are either lost or sold off. I can't reopen at a later time and expect repayment.

[Grimrock Litless]

This is not a big thing, when a bank closes, loans pauses until it reopens. And option one is extremely retarded.

No it isn't retarded, and this coming from the guy who has made some of the worst suggestions. Back on topic. If I run a business and have payments due to me and I close my business, those payments are either lost or sold off. I can't reopen at a later time and expect repayment.

If the person who have loans with u takes his money and later, u close the bank, u just don't earn money, that's all. That's rich coming from the guy who thinks that he is in the same level as the big pirates.

Just like chin chin, u make suggestions on things that benefit you pirates the most.

[Shadowood]

I like the selling off a loan option. Banks in RL do this all the time. I am not a banker, but would love a bankers input.

Banks in RL do this to obviously make money on the interest rates. But they also inherit the risk of the loan defaulting.

Very good idea D-Nutz!
+1

[Grimrock Litless]

Yes, I too like the idea of selling loans to people, but a idea like this was suggested before and was ignored, it's buried somewhere in the forums.

[DezNutz]

This is not a big thing, when a bank closes, loans pauses until it reopens. And option one is extremely retarded.

No it isn't retarded, and this coming from the guy who has made some of the worst suggestions. Back on topic. If I run a business and have payments due to me and I close my business, those payments are either lost or sold off. I can't reopen at a later time and expect repayment.

If the person who have loans with u takes his money and later, u close the bank, u just don't earn money, that's all. That's rich coming from the guy who thinks that he is in the same level as the big pirates.

Just like chin chin, u make suggestions on things that benefit you pirates the most.

I'm not a pirate, I'm a merchant. And it is a discussion, I provided a fair analysis of a poor game situation where a player owned business, in this case a bank, provided a loan and then the player decided to close the business. The loan should either be sold off to another banker or closed and forfeited. I provided a 3rd option that is complete BS in respect to a comparison of the game mechanics to similar scenarios in RL.

Furthermore, this doesn't benefit pirates.

[Malachi Constant]

Just like chin chin, u make suggestions on things that benefit you pirates the most.

Why do you automatically attack anyone you think is a pirate? Do you even read the suggestions or the post or just see who the poster is and trumpet your dislike?

When I see you pop up on forums I will be sure to light my hair on fire before reading so I am distracted and can't fully absorb your comments.

Or perhaps I will leave trading and just become a pirate against you, and you alone.

[Bmw]

honestly it would be fun to sell off and be able to trade loans

[Sir Henry Morgan]

I agree as it would be an excellent option to be able to buy and sell loans - I'd like to be able to buy and sell banks, offer insurance similar to what nations do with skirmish, etc., but that's real world banking. This is Pirate's Glory. Banking here is more like loan sharking, as there is no insured deposits, no collateral, just a person's word that they will do what they say. Banker says your gold coin will be there when you need it. Borrower says he will repay what he's borrowed with interest.

I think it more prudent to expand aspects of seafaring, such as ship specialization, port features, national features that inspire more trading and naval strategies. Banking doesn't really do that, as most borrow much more than can be confiscated or impounded. It hasn't inspired any further naval based strategies in that regard, as to go after a bloke with only 250k worth of ships for a 10M loan isn't viable. Besides, there are better investments than loans for bankers or those with enough swag to build a bank.

Bottom line, as for defaulted loans, that is between the banker and the borrower and how they wish to deal with it be between them, whether the bank is open, or has been re-opened.