We’ve managed to secure an interview with PeerBerry, a Latvian peer to peer lending marketplace founded in 2017!
What happens when a loan originator goes bankrupt?
In this case, AV Marketplace, the company behind PeerBerry, will take over the loan originator’s claims. AV Marketplace can manage the claim itself or transfer the management of the claim to third party at AV Marketplace’s discretion. AV Marketplace as a trustee has an obligation to inform the borrower on the assignment of the claim on behalf of the investor and demand the borrower to continue to make all payments arising from the claim to AV Marketplace or third party as a trustee of the investor.
What happens if PeerBerry goes bankrupt?
Insolvency of AV Marketplace will not affect legal relations between the investor, creditor and borrower. A third party will take over the administration and management of all claims.
Who secures and provides the buyback guarantee?
The loan originator is legally bound to buy back the loan when it has been overdue for 60 days or more. There is no security deposit for the buyback guarantee. Therefore, you depend on the loan originator to be operational to depend on the buyback guarantee.
Do you plan to release financial statements?
We will share annual statements for 2018 as soon as they are ready. We plan on publishing detailed information about the loan originators on the PeerBerry website.
Prospective investors can register here