Non-Performing Loan (NPL) Auction
3Jane initiates an onchain dutch auction for licensed U.S.-based collections agencies to bid on collecting the debt on a contingency basis, meaning if they are successful in collecting they get to keep a share of the principal repaid. The lifecycle is as follows:
Auction is triggered by delinquency and 3Jane shares borrower profile with all onboarded collec- tions agencies, including onchain/offchain credit data, assets, and cash flows. Does not include PII
The contingency rate Rc increases over time until an agency accepts. 3Jane shares private user data with the particular collections agency
Agencies proceed to collect on the debt via skip tracing (TLOxp). These agencies have multiple means of incentivizing repayment, including getting a court injunction to force repayment and subsequent wage garnishment, bank account levies, CEX levies, and freezing onchain assets.
If successful, borrower directly repays outstanding balance onchain. Funds redistributed to money market, collections agency, and existing borrowers.
TLOxp is a powerful skip tracing and debt recovery tool that equips licensed collections agencies with 100 billion public and proprietary data points that helps agencies locate debtors and verify identities
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