Refund offer no longer in effect for amounts uploaded after today's date

Discussion in 'Announcements' started by Julia Kurnia, Nov 8, 2013.

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  1. Julia Kurnia

    Julia Kurnia Director, Zidisha Zidisha Staff

    Dear all,

    As of today, we have removed from the Zidisha website the offer to refund lending credit that has not yet been repaid to any lender who requests it. The refund offer still stands for amounts uploaded prior to today's date.

    The refund offer was intended to help ensure a good customer service experience to our lenders and borrowers. We made it explicit because we felt that if anyone has a negative experience with Zidisha, we ought to make it right by returning their money. We removed the refund offer because it was increasing the risk that lenders would put money they could not afford to lose into Zidisha lending.

    We recently had a refund request from a lender who had put a large sum of money into Zidisha loans, reasoning that he would keep any positive returns, and ask our organization for a refund if there were losses. The lender requested a refund not because of poor customer service, but rather because he lent an unwisely large amount. Had we not offered a refund guarantee, he would have been more likely to limit his lending to amounts he could afford to lose. We honored that refund request, but it made us realize that continuing to offer such refunds was exposing lenders and the organization to an unforeseen risk.

    Lenders who have uploaded lending credit prior to today's removal of the refund offer may still request a refund of the amounts uploaded while the offer was still in effect. We will not be offering refunds for any lending credit uploaded after today's date.

    Best regards,

    Julia Kurnia
    Director, Zidisha
     
  2. Falconet

    Falconet Forum Member

    Good move.
     
    KirstenShute likes this.
  3. russell

    russell Forum Member

    I think this is essential to avoid going bankrupt in the future.
     
    KirstenShute and K M like this.
  4. Evelyn

    Evelyn Forum Member

    I agree. The guarantee is nice if someone is trying it out with a small amount of money for just a few weeks, but it is certainly not necessary and could be really problematic in the future if more people treat it the way the person did in Julia's example above.

    Kudos to Julia and it speaks to her integrity for still honoring the request.
     
    KirstenShute and Wiredfox like this.
  5. Hope2012

    Hope2012 Gold Member

    Definitely a good move.

    "The lender requested a refund not because of poor customer service, but rather because he lent an unwisely large amount. Had we not offered a refund guarantee, he would have been more likely to limit his lending to amounts he could afford to lose"

    In retrospect I would have thought twice about lending one uncomfortably large amount at once had I not read about the refund guarantee - I was a bit naive at first and when i read that guarantee in the FAQ i assumed there was some big Bill Gates style philanthropist behind Zidisha who was underwriting all the loans just in case (and paying staff). Yes that was dim but we live and learn.

    So good idea to remove that bit
     
    KirstenShute likes this.
  6. KirstenShute

    KirstenShute Gold Member

    I agree, both decisions seem fair. I think the ability to withdraw money should be limited to funds that have been returned, not funds that are invested in active loans, or else there is too great a risk to Zidisha.
     
  7. Charlie

    Charlie Forum Member

    Julia,

    Please clarify the nature of the current refund offer.

    For example, if someone uploaded $100 before the refund offer was removed from the website, how much still is eligible to be refunded? Do any other conditions besides the prior to a November 8, 2013, upload date now apply?
     
  8. Julia Kurnia

    Julia Kurnia Director, Zidisha Zidisha Staff

    Dear Charlie,

    We are not able to offer partial refunds for lending accounts that are still open. In the event that a lender would like to request a refund and has not uploaded any further amounts since the offer was removed, then we will refund the full amount he or she had paid to Zidisha, including donations and transaction fees as well as funds uploaded. The lender's account would then be closed and any future loan repayments to that account would convert to donations to Zidisha.

    Best,

    Julia
     
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