Loan Delinquency

If a user is delinquent on one or more loan payments, interest will continue to accrue and compound daily.

If you are doing one-time loans with AutoPay and you think the user is willing to pay but needs more time, you might find snooze a payment.

Interest will continue to accrue until the loan reaches the cap amount set for the loan. Once interest charges reach the cap amount, interest will stop accruing. Please note that Synapse will not "tag" the user as delinquent nor strike the loan off. However, the platform can do as at their discretion (see below).

Terminate/Deactivate Loan

If a user is delinquent in making their loan payments as the described above, or if for some other reason you wish to terminate/deactivate/strike-off a loan, you will need to take the LOAN-US balance to 0 by funding the node from your platform's account or some other account. At that point, you will be able to use the following calls:

By doing so, you will again make the correspondent amount of Loan Reserve funds available for lending.

Example:

A platform's Loan Reserve Amount has $600 assigned for lending purposes. It has a single (revolving) loan that is also delinquent with a balance of -$250 (-$200 principal and -$50 interest).
Until this balance is addressed, the platform can only further lend $350.
If the platform then decides to terminate that loan, it must:
1. transfer an amount equal to the loan balance (i.e. $250) from its own deposit account, and then
2. use the Terminate Revolving Loan API call to close the loan.
If the platform performs all necessary steps, it will again be able to issue $600 worth of loans.

Notice to User for Revolving Loans

If a revolving loan is terminated, or the amount of available credit is reduced users will have to be notified. When you make the Terminate Revolving Loan API call, you should find a termination letter (also known as "Loan Termination Adverse Action Notice") in the response (within the info.agreements object in the response with type TERMINATION_LETTER). Please share it with the user. This is not a requirement for one-time loans.