Frequently Asked Questions (Co-Borrower)
Answers
What is a co-borrower?
A co-borrower is a co-signer who is individually and jointly liable for your loan. Being a co-borrower
makes you legally obligated for the loan repayment. So co-borrowers are normally a borrower’s trusted friends or family members.
In order to be a co-borrower, you must be at least the in the state of
your residence, a citizen and resident of the United States, have a valid Social Security number, and have a
of C+ or better.
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Will my credit report be impacted when People Capital pulls my credit summary?
No. People Capital conducts a "" inquiry to obtain data for the borrower’s loan request. While this data is derived from credit reports, the soft inquiry is neither reported nor recorded on the borrower’s credit report and therefore has no impact.
However, once the loan is approved and , People Capital will conduct a "" inquiry on the borrower,
which will be reported and recorded on his/her credit report. It appears just like any other lender
inquiry.
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If my borrower does not pay, what happens?
If your borrower's payment becomes more than 15 days late, he/she will be charged a late fee. If the loan continues to be delinquent,
he/she will also be charged a late fee after 45 days, 75 days, and 105 days. Once the loan goes past 120 days it will be considered in default and may be sold to a debt purchaser.
If the loan payment becomes 60 days late, People Capital will report this event to all consumer credit reporting agencies. In addition, each time the borrower's automated bank account debit
fails, which may be due to insufficient funds or a closed or frozen bank account, the borrower will be charged a failed payment fee.
For co-borrowers, we will not attempt to debit your account until we are unsuccessful in collecting money from your borrower's account three separate occasions. If we are unable to debit your borrower's account on the due date and two subsequent days (on the 9th and 19th late days), People Capital will then attempt to debit the amount, and all unpaid late and failed payment fees, from your bank account on the 26th late day. Once your account is brought "current," we will once again continue to debit your borrower's account at least three times before going back to your bank account in subsequent months.
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