Debt Default Foreclosure, garnishing and repossession

[Most Lee Harmless]

I'm not against the idea of Banks being able to get something back from defaulted loans.

There have been previous discussion and suggestions on this. I would have to look to find them.

I however would favor a banker the ability to sell debt to a nation or debt collector at a reduced cost. Then the Nation or Debt Collector could clear that debt as they see fit.

Waste of effort : just how does a nation collect on these debts? They cant even collect on direct debts owed to them. Why the heck will they be buying in debts?

Debt collectors : again, waste of effort : why pay to get a target? The kind who fancy smacking folk to gain coin.. you know they already do and they aint paying for the privilege now so why think they will for this nonsense?

[Axy]

Very well said PK
+
El draque's idea is great

these ideas would have been very sweet after ack left

+1+1+1

[Dmanwuzhere]

As a banker, i dont think anyone with any flag can say player lending isn't a necessary function of the game unless you want it to crawl. I can see the need for collections, however, this is supposed to be at a time when lending practices were far less regulated and there was the risk of never seeing your cash again, so with that in mind, getting your woop on to collect seems to be a good way. I would propose a couple things though:

1. Would be nice to have loan default list under bank link so bankers can see who has been reported in default.
2. if there as a mechanism in that default tab to allow for repossessions. What i could see is if there is reported defaulting on loans, maybe the banker(S) could commandeer ships directly from fleets after 30 days of inactivity. Those are tangible assets. in the case of multiple bankers with claims, better watch the clock, its first come first serve.
3. Maybe those ships come with the captains. (x amount of repo casts per $ owed)
......Example--- if I loan 10 mil to someone, they default and go inactive and i commandeer a LMM with Captain. At my current rate of 9.1 mil per captain, I would damn near be whole (effectively), yes i know they didn't pay that much for the captain.
4. Later down the road when planation actions come into play, maybe there will be ways to lay claim to inactive resources.

Its not a way to be totally whole, but it could offer some, if even a little relief.

Just a thought

i borrow out of boredom not necessity i just hold the cash and pay it back from plunders as a way to save turns rather than banking the cash
the last set of loans was for 300m total i will prob get more before too long
but lending to everyone with large amounts comes with risks if the player has no pride they wont care about your loss or smearing their own name
by not paying
lol if you arent sure then make them bring a co signer you would trust to pay a defaulted loan if they cant find one dont loan them the cash

[William one eye]

How about this.

Collateral and cosign are optional add ons to a contract.

A player may submit the id of any ship in their hideout as collateral. The banker can use the id to inspect the ship.
If the contract is accepted the ship is locked in the marina space for the duration of the contract.
If contact is defaulted the ship is sent to the banker.
The banker receives the ship similar to end of ship auction.

A player can also offer gold bar as collateral.
Gold bar can be in any location including goldsmith.
However once offered as collateral it is locked in place for the the duration of the contract.
Upon a default it is held by the game for a limited period of time until the banker selects the destination of the gold bar.


Any asset offered is locked, unsuable and unmovable during the duration of a contract.

If the banker fails to claim collateral in a set period of time it is returned to the player in default of the loan.


If a player does not have collateral

There should be a cosigner option.

Cosigned loans could be gauranteed by actual gc funds in the sponsors account, or by a sponsors collateral asset like marina ships or gold bar.

Or cosigners could elect to just share full responsibility for debt and interest repayment.

An asset offered must still be present in offered condition and offered location for the contract to activate.

Any asset offered is locked, unsuable and unmovable during the duration of a contract.
Unclaimed assets default back to the player offing the asset as collateral.

Again these are add ons to contracts.
Contracts could still be issued exactly as they are now.

Edit. You may offer as collateral, more than one ship if desired
Limited only by the ships and slots available in your hideout.

Likewise i suppose you should be able to offer bar as collateral from multiple locations.

[Psychodad]

+1

[Sir Henry Morgan]

The current banking system works on a trust system. Depositors trust the banker will not freeze their account nor abscond with funds.

If a banker breaks that trust, no will ever deposit funds there again. The depositor will make certain Avonmora hears about it.

The banker trusts the borrower has a plan to repay the loan. If the lender defaults, he will never be able to use the bank again; I assure you bankers don't do as good a job of letting others know about it.

It is already evident we cannot regain the lost funds. They are gone - but a means to cause greater hardship would more likely follow the model CJ set for banks. Banks were not meant to operate as modern banks, but more as 'relations' banks.

Attacking fleets will cause some hurt, but destroying officers, warehouses and shutting down a defaulter's operations will also cause some discomfort.

As for inactives, nations offer insurance. If your nation doesn't, set it up to do so or join a flag that does.

These are piracy styled banks - it is all based on the trust between the banker and borrower. Even with collateral, it does not mean you will be able to foreclose.

Best practice is ye don't trust 'em, don't lend to 'em (or deposit funds in their bank).