WebMoney

Wiki

Debt service

WebMoney Debt Service (debt.wmtransfer.com) is a computer appliance for managing debt relations between WMT members. The service allows members to lend funds to their correspondents and assists in the accounting of loans and their timely repayment. All loans are given in WMZ title units on certain conditions and for a limited term.

All operations on the Debt Service website debt.wmtransfer.com (including opening, closing, and changing a trust limit, and taking a loan based on the trust limit) require an SMS confirmation. Therefore your passport information must include a verified mobile phone number.

To become a lender a user must set a trust limit for each potential debtor which is an Agreement for the loan of title units on conditions that include:
  • the maximum loan amount;
  • the maximum disbursement period;
  • the manner of credit repayment;
  • the daily interest rate for funds usage;
  • the purse number from which funds will be granted.

Any addition or alteration to the trust limit terms requires mandatory confirmation by the debtor, specifying that they agree to the conditions for credit granting and repayment.

An open trust limit remains in effect indefinitely. The debtor can receive funds at any time provided that at the moment of credit receipt the total amount of already-used funds pursuant to the given funds limit does not exceed the specified maximum.

WebMoney calculates a trust limit (TL) for each WebMoney member based on open trust limits. The TL value is directly proportional to the number of correspondents who have granted a trust limit to the member, the amount of funds entrusted to him, and the maximum disbursement period. The trust limit value can serve as an indicator of a system member's trustworthiness but it should not replace personal communication when establishing debt relations between users.

When receiving the grantor's funds the debtor should register Obligations in the Paymer system. Pursuant to these obligations the debtor vouches to repay the loaned funds or else to compensate the damages in the equivalent amount (see example of a promissory note).

Assuming that trust relations are established between the lender and debtor the Debt service provides flexible mechanisms for loan repayment. At the same time it is important to take note of the following:
  • The repayment procedure can be initialized by either the debtor or the lender;
  • Credit repayment at the lender’s initiative prior to the term's expiration deprives them of the interest for funds usage;
  • If there are not enough funds to repay the credit on the purse to which funds were granted the service will deduct funds from other Z-purses of the debtor;
  • If all of the debtor's funds are insufficient then other trust limits granted to them by other system members will be used;
  • If the debtor is unable to repay the loan using the above methods they can repay the debt with a Paymer check (Obligation agent) whose value is equal to the debt. The check can also be used for debt recovery outside of the service or transferred to the promissory note exchange.

The Debt service website also offers a unique credit exchange where any system user can post a request to receive or grant a loan as well as to make use of existing offers from other Debt service users.

The Debt service functions can be accessed by any WebMoney member with a passport that is formal or higher.

All loan operations – both receipt and repayment – are carried out only via the Debt service. Keep in mind that direct transfer of funds from one Keeper to another is not considered loan granting or loan repayment.

Setting a trust limit

Trust limits can be opened either for WebMoney Transfer members who are in your correspondent list, or by creating a request on the WebMoney Debt service website.

The form for opening a new trust limit can be found in the “Correspondents” tab, in the “Trust limit…” option of the contextual menu. To open a trust limit choose the purse whose funds can be used by the correspondent, the maximum amount for the trust limit, the maximum term of funds usage, and the interest rate for the loan usage.

Once you save the trust limit, the service sends a message to the correspondent via WM mail with an offer to read and accept the terms of the trust limit. If the correspondent agrees to the conditions of the trust limit that has been opened to them, they can use the funds at any time using the Debt service interface.

The trust limit parameters can be changed at any time by the owner. The new conditions come into force only after the correspondent accepts them.

For details, see:
Setting a trust limit
Accepting the terms of a trust limit

To receive a loan, specify the purse, the amount, and the time period within which the debtor plans to repay the load. The amount and the time period must not exceed the maximum values specified in the trust limit.

Receiving a loan based on a trust limit

The form for receiving a loan based on an open trust limit can be accessed in the "Correspondents" tab, in the "Trust limit…" option of the contextual menu. To receive a loan specify the purse, the amount, and the time period within which the debtor plans to repay the loan. The amount and the period must not exceed the maximum values specified in the trust limit.

After specifying the amount and term of the loan the correspondent must accept the "Agreement for the Loan of Title Units" and register the promissory note for funds repayment at the Paymer service website. The service calculates the amount of returned funds based on the interest rate of the used trust limit, and the amount and term of the loan. The obligations are automatically covered and stated as funds that have been repaid based on the limit. If the funds are not repaid within the specified time period, the obligation is transferred to the ownership of the WMID owner who opened the trust limit.

For details, see:
Receiving a loan based on a trust limit

Loan repayment by the debtor

The form with the list of trust limits based upon which credits were received can be accessed in the "Correspondents" tab, the "Trust limit" option of the contextual menu, and then by following the link “Trust limit open to me\Usage history...”.

You can view the details for each entry in the loans list by left-clicking it with your mouse.

This form displays the conditions upon which the creditor used the funds obtained using the trust limit, the transactions list (both the receipt and repayment of funds), the amount which must be repaid currently and the full amount to be repaid. Depending on the terms of the loan repayment, it may be possible to repay both the current amount and the full amount. For convenience the form displays the current amount on the purse from which the credit must be repaid. To repay funds, use the "Carry out next repayment" or "Repay full loan" options. When doing so funds will be returned only from the purse to which they were granted.

For details, see:
Loan repayment by the debtor based on a trust limit

Loan repayment by the lender

At any time the lender, just like the debtor, can initiate the repayment of funds borrowed from them based on a trust limit. To do so use the “Repay credit prematurely” option on the page with a detailed description of the given loan. In this case if the funds are repaid prior to the specified term of their usage, the lender loses the interest otherwise gained on the loan.

When repaying funds the necessary amount is deducted from the purse to which the funds were granted. If the purse has insufficient funds the necessary amount will be deducted from other purses of the debtor (starting with the purse that has the greatest balance). If there are not enough funds on all of the purses, then trust limits granted to the debtor by other system members (starting with the trust limit with the lowest interest rate) will be used to repay the loan. If these funds are also insufficient the lender can block the debtor until the loan is repaid in full.

For details, see:
Loan repayment by the lender based on a trust limit
Blocking and unblocking a user who did not repay a loan

Loan repayment by Paymer check

If the lender cannot return the full amount of the loan by any means then they can receive an obligation from the debtor for the repayment of the remaining funds registered in the Paymer system. To do so click the "Exchange for check" link which appears on the Granted loan page after the lender unsuccessfully tries to return funds using the "Return" link. The details of the Paymer check, the number and code, are displayed on the same page and from that moment on, the obligations corresponding to the check are transferred to the ownership of the lender and the debt is no longer tracked by the Debt service.

PAYMER checks that are received to repay a loan based on a trust limit are not WM cards and cannot be repaid to a WM purse!

Having the number and code of the check in hand the lender can initiate the procedure of recovering funds from the debtor (see Instructions on using Paymer checks to recover debts).

The lender can transfer the obligation on the overdue loan to Debt Mart to sell it to any interested person or collection agency.

For details, see:
Loan repayment based on a trust limit using a Paymer check
Transferring debts to Debt Mart

Offers to receive and grant a loan

The "Offers" section of the WebMoney Debt service lets any WebMoney user:
  • post requests to receive loans
  • contact users who posted requests to grant a loan with an offer to set a trust limit
  • post requests to grant loans
  • open trust limits based on requests of those wishing to receive a loan

All requests are created on specific conditions (the amount of the loan, the interest on funds usage, the manner of repayment) and for a limited term. After publishing a request in the list of offers it can be used by any WebMoney system user.

For details, see:
Creating a request to receive a loan,
Creating a request to grant a loan

The Debt service site

See also:
Recommendations for lenders
Setting a trust limit
Accepting the terms of a trust limit
Loan repayment by the debtor based on a trust limit
Loan repayment by the lender based on a trust limit
Loan repayment based on a trust limit using a Paymer check
Blocking and unblocking a user who did not repay a loan
Unblocking a users WMID after loan repayment based on a trust limit
Using Paymer checks for loan repayment
Transferring debts to Debt Mart
Debt Mart
Loan borrower application